U.S. Treasury, Fed planning for possible default -source

Reuters ^ | Oct 9, 2013 | Tim Reid and Jonathan Spicer

[mdittmar]

* Contingencies eyed if Congress fails to raise debt limit

* Treasury, Fed officials focused on default options

* Top Republican says Congress should see plans

* Officials stress failure to raise debt limit disastrous

By Tim Reid and Jonathan Spicer

WASHINGTON/NEW YORK, Oct 9 (Reuters) - U.S. Treasury and Federal Reserve officials worried about the growing possibility of a catastrophic default are crafting contingency plans to mitigate the economic fallout if Congress fails to extend America's borrowing authority, a source familiar with the plans said.

With just eight days before the Treasury Department says the U.S. will hit its $16.7 trillion borrowing limit, lawmakers and the White House remain far from a deal to extend it. Officials are examining what options might be available to calm financial markets if a U.S. debt payment is missed.

[RetiredArmy]

If the US gov-mint defaults, does this mean I don’t have to pay all my bills when they do not send me my military retired pay and my socialized security check?

[UCANSEE2]

The President has no such authority.

When has that stopped him?

There is, in fact, no such thing as "martial law" in the United States.

As we watch the NPS close our national monuments and parks, locking the porta potties, removing the handles from water pumps/fountains.

[Jim Noble]

When has that stopped him?

Oh, I don't doubt that "Obama" would try it - that he is, in fact, itching to try it.

But, under what TASS would call the present "correlation of forces", we are losing. I don't think there is any serious chance that the forces of communism are now going to be stopped without war.

If "Obama" can be made to roll the dice, our chances in the game we are now losing will improve. Maybe not a lot, but they will improve.

[i_robot73]

That’d have been a hell of a lot easier if the House/GOP/RNC had been on the Senate’s/Reid ass about a BUDGET.

Unfort. even the GOP wanted more funny $$ to blow through.

[Tolerance Sucks Rocks]

There already seems to be a meme along the lines of, will we choose to pay foreign investors over our seniors, veterans, etc.?

So don’t assume automatically that our government won’t choose to default.

[Awestruck]

couldn’t have said it better...this is just more disinformation to scare the masses and the markets

[SisterK]

Or if the gov-mint defaults does it mean that China forecloses on Wyoming, New Mexico, Florida and Colorado?

[SunkenCiv]

Thanks mdittmar.

Yellen hints at boosting inflation to create jobs (Obama’s Federal Reserve chairwoman nominee)
The Daily Caller | October 9, 2013 | Tim Cavanaugh, executive editor
Posted on 10/09/2013 3:13:15 PM PDT by 2ndDivisionVet
http://www.freerepublic.com/focus/news/3076899/posts

Jonathan Jarvis: 0bama’s henchman at the National Park Service
Department of the Interior | 10 Oct 2013 | Department of the Interior
Posted on 10/10/2013 3:21:28 PM PDT by citizen
http://www.freerepublic.com/focus/news/3077386/posts

[Grampa Dave]

The US will not default on it’s debt. With about $200-250 billion a month in revenue and debt service being about $25-30 billion... HOW in hell does anyone think we can’t pay our debts?

What Lew and his beloved Obozo are concerned about is the possible lack of payments to their voters, who depend on welfare.

[Grampa Dave]

"After about 5x's of this "the world's going to come to and end", crap people are waking up and seeing it's nonsense. obama is so inept at leading he has overplayed the few cards he has. He has no control over himself. He's a petulant spoiled baby."

[RobbyS]

Obama and the Democrats were hoping that the rise in revenue would be enough enable them to justify their projected levels of spending. Ironically, the sequester has made that half-way pausible.