Posted on 08/02/2021 5:04:46 AM PDT by John W
The Treasury Department will begin conducting emergency cash-conservation steps on Monday to avoid busting the federal borrowing limit after a two-year suspension of the debt ceiling expired at the end of July.
Economists say those so-called extraordinary measures will allow Treasury to pay off the government’s bills without floating new debt for two to three months. After that, Congress will need to either raise or suspend the borrowing limit or risk the U.S. defaulting on its obligations.
The limit, a facet of American politics for over a century, prevents the Treasury from issuing new bonds to fund government activities once a certain debt level is reached. That level reached $22 trillion in August 2019 and was suspended until Saturday.
The new debt limit will include Washington’s additional borrowing since summer 2019. The Congressional Budget Office estimated in July that the new cap will likely come in just north of $28.5 trillion.
Though the federal government has never defaulted, economists say such an event would have disastrous effects on the U.S. economy by spiking interest rates.
(Excerpt) Read more at cnbc.com ...
“Economists say those so-called extraordinary measures will allow Treasury to pay off the government’s bills without floating new debt for two to three months. After that, Congress will need to either raise or suspend the borrowing limit or risk the U.S. defaulting on its obligations.”
October. How will the markets react on a Monday October?
In order to avoid default, all the US has to do is keep paying the interest on our debt.
We can easily afford to do that.
If we default, it’s because Derp State wants us to default.
When you create money out of thin air you can “afford” anything..all fun and games until it is not.
Isn't it wonderful how we shlubs can't kite checks or otherwise take "extraordinary measures" to plug the dike of our debt, but the guvmint can do anything they please without consequences to anyone except us shlubs?
> After that, Congress will need to either raise or suspend the borrowing limit or risk the U.S. defaulting on its obligations. <
There is a third option, but it probably never occurred to them. They could cut back on their spending. Of course, pigs will fly in perfect formations before that happens.
After that, Congress will need to either raise or suspend the borrowing limit or risk the U.S. defaulting on its obligations.
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Congress over the last years has become even more gutless than they use to be. Now they don’t even raise the debt ceiling. Too public an exposure of how out of control spending is. So they simply “suspend” the borrowing limit.
That’s part of the reason the gubmint fascists had 25,000 troops in DC, just to remind us that they can do anything they want with no consequences.
Seriously, we can easily afford to pay the interest on our debt.
If we default, it’s because Deep State want us to default.
In the meantime, it’s a handy scare tactic, that might work on the sorta folks who actually think there’s such a thing as a government shutdown.
Well, this is the insurrection made by the DNC on the American people!
I’m a little confused. For a while now, a year or more, interest rates have been at or near 0
So, it seems that the debt incurred after at least July 2019 is in effect free.
The interest due is on old debt incurred prior to the near 0 rates.
Has any of the old costly debt been paid off with the new interest free debt?
1. Print "United States Notes"
2. Loan this money interest free to municipalities (only) for capital improvement projects. Putting people to work, paying them, paying venders and suppliers to these projects, etc.
3. All the "United States Notes" to circulate through the economy, but watch the inflation rate.
4. If there was inflation, remove Federal Reserve Notes from circulation.
I suppose this plan went away with the "cashless" paradigm developing.
“default on obligations” is nonsense. A default is on debt payments, not on spending plans, which have now been re-branded as obligations.
Huh? Keep paying the interest? Up to June this year , we have paid
$421,000,000,000 in interest…..
https://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm
Extraordinary measures? ..... like stop printing $$$$ lol
I nominate the CDC for the first “shutdown”.
Situation normal.
IOW the so called debt limit is not what it says it is. They are just printing money, or debt, as they wish. Said another way, our money is a charade.
IOW the so called debt limit is not what it says it is. They are just printing money, or debt, as they wish. Said another way, our money is a charade.
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