Thank you pookie18
Tim Geithner is the boy who cried wolf.
Absolutely nothing! Say it again!
Supposedly, we’ll have to cut 45% of government spending. will never happen, but we can dream.
Look at Iceland, they’ve already gotten over their default. Within a few years a default would be a fart in a windstorm.
The question IS NOT "What will happen if we don't raise the debt ceiling and default on our debts", THE QUESTION IS:
"WHAT WILL HAPPEN IF WE CHOOSE TO FUND TURKEY BASTERS FOR LESBIANS, THE NATIONAL ENDOWMENT FOR THE ARTS, DUMB ASS RAIL PROJECTS, PBS AND NPR INSTEAD OF PAYING OUR DEBTS, SOCIAL SECURITY AND MEDICARE FIRST?"
Good few sentences.
This whole game is just ANOTHER scheme to extort MORE money from American taxpayers.
They tell us they’re broke and threaten to cut off the basics -the things the national government are SUPPOSED to do, according to the founders.
All the while, THEIR salaries, their special interests ALL continue - business as usual.
These folks ARE the so-called “Rich who are getting richer off of OUR backs”. WHEN WILL THE PEOPLE OF THIS NATION REALIZE THIS???
At which time the Public Employees pension funds that he has been stealing from also go bust. Can you say "House of Cards"?
Geithner is a whore. Worse yet, he's a stupid whore.
Step 1: discontinue all foreign aid; replace it with voluntary donations for specific nations/purposes.
What would happen?..... our government would have to do it’s job.
They’d have to make do with what money they have within the current budget and decide which programs to cut and which to keep.
Funny how governments (local, state, and Federal) whine and complain about shortages but they always seem to find the cash somewhere when they need it or are forced to cut programs.
There is a huge amount of waste and the Feds are paying for things that they should be paying for.
Question for the Liberals: would money be better spent on the NEA, PBS, etc. or on helping the poor. No, you can’t have both. We can’t afford it right now.
Like most families, we forgo the extravagances like eating out and seeing the latest movie, if we can’t afford to pay the rent or for food. Why shouldn’t all government entities be forced to do the same?
If 44% of the federal government employees were out of work as of August 2, it would amount to roughly 880,000 new productive workers
And these productive workers will work where? I see 880,000 militant unemployed persons demonstrating and generally causing chaos through civil unrest this country has never experienced.
Jobs they now have will never be found in the private sector.
Jobs, even without the generous benefits, simply are not there.
well, tanking the world economy would ensure Obama’s defeat next fall, and I’m fairly certain Moody’s is not aiming for THAT.
“Since then, according to U.S. Treasury Secretary Tim Geithner, the government has avoided not paying its bills through “extraordinary measures” and “accounting maneuvers.”
Probably the only thing Geithner is good at- avoiding paying bills....
Thank you pookie18
I don’t know. There’s so many knee-jerk comments on these threads nowadays that I wonder if anyone who actually cares about the issues even bothers to scan through them, but here goes anyway...
The author of the article is quite possibly wrong when he says that the government would have to sell assets to pay off maturing debt issues. When a T-bill, or note, or bond, matures it opens up room under the debt ceiling. We would get the cash for paying it off by issuing a new bond, note, or bill. As long as the issues were simultaneously created and repaid, the total debt would stay the same and the debt ceiling would not be violated.
I said he’s “quite possibly wrong” instead of “is wrong” because the one hitch in this is that you have to have buyers of the new issue. There will be buyers, but they might not be satisfied with the current interest rate, and would demand a premium. At first, I doubt it would be very much, but I could be wrong, and over time it the premium demanded could rise significantly.
I doubt, though, that we would have to sell assets to stay within the debt ceiling due to maturing issues. On the other hand, we might sell assets to pay some of the other expenses.
If the debt ceiling is not raised, then whatever stimulative effect comes from employing nearly a million people and spending $1.6 trillion per year will immediately disappear.
Instead of buying cell phones, the newly shrunken government may find itself in a position to SELL cell phones. Whose going to buy new cell phones if they can buy like new phones from the government at fire sale prices?
Real estate continues to stagnate. Will nearly a million government employees find themselves buying real estate? Or will they be net sellers of real estate? What would that do to existing home sales or to the construction industry?
The same thought process can be applied to any expenditure being made directly by the government or by the million government employees who will be without a paycheck.
I don't see this ending well at all.