Posted on 07/28/2011 3:40:14 PM PDT by Qbert
If there is no clear path out of this morass by tomorrow, sources say that administration officials will likely brief the public on how the Treasury Department will try to handle the bills Congress mandates that the government pay given a situation where Congress has not given them a way to do so.
Look for that briefing to come no earlier than Friday after the markets close at 4 p.m. ET, sources say.
Officials are most concerned about paying the interest on the existing debt, since failure to do so would result in default and almost certain immediate market panic, as well as questions about how Treasury would be able to roll over a pre-existing $87 billion in debt that comes due next week.
After that -- a list of priorities, not all of which that can be met. Social Security checks? Medicare? Government workers? Pentagon contractors? Troops' salaries? The FBI?
Vice President Joe Biden and Senate Minority Leader Mitch McConnell have been talking privately about a possible way forward should Boehner's bill fail in the Senate, which seems likely, according to sources familiar with the talks.
(Excerpt) Read more at blogs.abcnews.com ...
“Officials are most concerned about paying the interest on the existing debt, since failure to do so would result in default and almost certain immediate market panic, as well as questions about how Treasury would be able to roll over a pre-existing $87 billion in debt that comes due next week.”
Bullcrap. We are obligated to pay the debt. That’s first on the list. ABC news just debunked the entire default debate.
14 trillion debt is 92,000 dollars owed by each that works and pays taxes.
Add our annual tax obligations to this 92k.
We are done.
It must collapse as no politician will ever cut anything.
Life as Nancy Pelosi knows & wants it, must end,
Pay down the damn debt and you won’t have the interest which is the problem.
IOW, we won’t tell you what we REALLY won’t or will pay until after the House votes on some FUBAR ‘budget bill’ and the DNC, enemedia, Soros and horrible-evil-fatcat-demonically wealthy get to take more profits from fearmongering.
Friday Dump ?
Start furloughing employes of the EPA and other departments that do not serve the citizens. NEA, NLRB. etc etc.
Are they going to kick the patients out of VA hospitals?
Are they going to withhold treatments to critically ill Medicare/Medicaid Patients.
How about dicontinuing SS Payments or Military Retirement Checks? Shouldn’t they give families heads up that granny and gramps may need to move in for a while?
How about the 100 million that goes to pay salaries of Palestinian Terrorists?
So, if the SS checks don't get mailed, it was this administrations decision. I can't wait to see who Oboma considers politically "expendable."
Will he force the U.S. elderly to eat cat food so he can continue to send millions in aid to his good pals in Palestine?
Hey Oboma. Choose thou. Whom will you serve?
We do not have budget reform.
Bring on the default.
The dems have not submitted a budget plan in over 800 days.
The Dems own the default.
And the Ideologue of the Unoted States ( Iotus) wants to become a 14th amendment tyrant. Impeachable he will then be.
Well, there’s going to be a lot they can’t pay since they’re borrowing 40 cents on every dollar. The debt has gotten to the point where it’s never going to be paid down, the politicians are reliant on being able to recycle the bonds as they come due at near zero real rates. Budget surpluses would have to be huge in order to pay it down in any realistic time frame. It’ll be inflated away and/or there will be a restructuring down the road. Once the market turns/governments no longer have a policy of holding us bonds to keep their own currencies cheap then we will really have a debt crisis as the borrowing costs - to both the government, companies, and citizens - will explode.
“Friday Dump ?”
I wonder about the timing of this if there’s nothing settled by Friday afternoon, and there’s still a likelihood of a Saturday vote.
It’s a lose/lose for Obama, I think.
If he plays the tyrant and cuts off Medicare or plays games with military pay, he’s done. OTOH, if they do have to start furloughing some Big Gov. workers... nice- few will notice the difference anyway.
Yes, we are. The only way to stop the inevitable fall is a 40% decrease in spending, and we know that will never happen. Right now they're buying time.
The democrats PLAN is to land on top, with their New and Improved version of America leading the way. Even though it was they who destroyed the "old way", they'll claim the free market failed, and only socialism/communism will be able to save us all.
The democrats, though, lack foresight. Fate is not a consideration for these people. They're not going to be able to control their freeloading base. When the free hand outs stop, all bets are off.
They're going to be hopping on their private planes out of here. We're going to get stuck cleaning up their mess. It's not going to be pretty.
I’m disgusted. Like this impasse hasn’t happened before. The government was shut down twice under Bubba in 1995 and 1996.
Any bets on what this prick will say can’t be paid for maximum effect? I think he’ll target medicare and SS just to get the crisis he wants.
Gridlock means instant spending cuts. Beltway idiots consider that to be a bad thing and are in a panic about it.
I’m starting to think that Obama wants a Government shutdown. It will be Clinton II and he expects to ride it to victory in 2012.
Will it work? I don’t think so. But he’s desperate for something to reverse his poll numbers.
Yep. He's a community organizer. The anti-Republican/anti-free market protesters have probably got their signs all printed up and handed out by now -- courtesy of George Soros. (Remember, he destroyers economies just for fun)
“I think he’ll target medicare and SS just to get the crisis he wants.”
I think he’ll also pull something like that to try to get Repubs to cave over the weekend before the supposed Aug. 2 deadline.
IMO the one thing Americans won’t tolerate is some second rate politician openly supporting foreign entities over American citizens in this matter. I would love to see a list of all the checks the Treasury writes. I would like to see how many are going to foreign Govs and qustionable orgs.
Now is the chance to get our troops home. Forget Lybia etc.
I know that sounds radical, but I bet Americans would be surprised just how much of their money goes to prop up failed Socialist States and fund terrorist orgs.
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