[uNkNowN ElEmEnt]

I think that's why they made Bernake the Fed head. so they can just print their way out of any major problem... or so they think.

[alecifel]

This is the dilemma Bush created when he claimed the throne in 2000: he's promised the same dollar to two people. On one hand, he proposes to fight a war against any brown-toned nation with resources, and war is no inexpensive hobby. On the other, he's promised to fulfill Social Security and Medicare agreements. Now he may be promising that dollar to a third recipient, the energy industry.

I agree, that the ratio of overall debt to GDP is not a real concern, but the budget deficit is a critical issue to worry about. If we take the hyperinflation path to devaluate our debt, millions of Americans will be caught in the same squeeze as Mugabe's victims: what good is a salary of $1000 a week, when bread costs $200?

[Eli]

John Snow talking about the US Gov defaulting

$this->bbcode_second_pass_quote('', ' ')"Rather, they should vote to raise the ceiling this week. It would be unthinkable for them not to take action," he said, warning that the "full faith and credit" of the US government was too precious to be compromised.

Snow has issued increasingly urgent warnings to Congress that the statutory debt limit of 8.184 trillion dollars will be hit this week, and that the government will then lose its borrowing power.

[seldom_seen]

$this->bbcode_second_pass_quote('Eli', 'S')o if the US gov does not pass the legislation necessary the US of A will be proven to be broke.

[DantesPeak]

The GWB adminstration and Congress have worried less about the debt limit than ever before. I suppose the expectation is the Republican majority in Congress will pass the bill increasing the debt limit when default becomes very near. Perhaps they are hoping this will get little public attention, but they may be wrong.

[bartholland]

This debt ceiling is just a psychological ceiling isn't it?

What happens if this ceiling doesn't get raised?
Will there all of a sudden be now lending options anymore?

[falser]

$this->bbcode_second_pass_quote('seldom_seen', 'H')mm, wish I could do that with my credit card.

[Clouseau2]

Conservatives often complain that Bush is "betraying the Reagan legacy" but in one area he is very Reaganesque: He will come out of his 8 year term having doubled the federal debt.

[Geko45]

Ok, so they nearly hit the debt limit of 8.184 trillion last month, but Snow raided the G-Fund (government retirement) to obtain an additional 65.266 billion to keep operating for another month. The Treasury put the debt at 8.270 trillion as of March 10th. Subtract the 65 billion from that and you get 8.204 trillion or about 20 billion over the debt limit. We are already in default.

Debt limit of 8.184 comes from the Breitbart article posted above

Treasury raids the G-Fund for 65.266 billion

Current debt of 8.270 trillion according to the U.S. Treasury

[green_achers]

Geko45, please fix your link. It screws up the whold thread for all of us. You can use the function to the far left on the second line of the task bar.

[Geko45]

$this->bbcode_second_pass_quote('green_achers', 'G')eko45, please fix your link. It screws up the whold thread for all of us. You can use the function to the far left on the second line of the task bar.

[Falconoffury]

Won't it be even worse if the debt ceiling gets raised? When is the USA going to draw the line and boldy declare, "This far... no further."

[smallpoxgirl]

$this->bbcode_second_pass_quote('Falconoffury', 'W')on't it be even worse if the debt ceiling gets raised? When is the USA going to draw the line and boldy declare, "This far... no further."

[nth]

The only reason US can borrow more and more money is because people are willing to lend to US.

A person can do the same thing as long as other people are willing to lend him/her money.

US will default on debt? If that happens, then it is Mr. Snow's fault. HE should pay off debt first before spending the money on all the government spending programs.

Anyways, I wish Congress do nothing and let the US go into default.
Let's see what will happen after that.
hahaha

[Geko45]

$this->bbcode_second_pass_quote('nth', 'U')S will default on debt? If that happens, then it is Mr. Snow's fault. HE should pay off debt first before spending the money on all the government spending programs.

[Bleep]

$this->bbcode_second_pass_quote('nth', 'T')he only reason US can borrow more and more money is because people are willing to lend to US.

[nth]

$this->bbcode_second_pass_quote('Geko45', '')$this->bbcode_second_pass_quote('nth', 'U')S will default on debt? If that happens, then it is Mr. Snow's fault. HE should pay off debt first before spending the money on all the government spending programs.

[nth]

$this->bbcode_second_pass_quote('Bleep', '')$this->bbcode_second_pass_quote('nth', 'T')he only reason US can borrow more and more money is because people are willing to lend to US.

[frankthetank]

Could they start raiding other retirements accounts? I think as long as the USD remains the petrol dollar, life will continue as is, until peak takes us down the long path to darkness and despair.

Bush is a puppet attached by strings to his masters.

[Falconoffury]

Raiding? You make them sound like pillagers with medieval weapons and animal skin clothing. I guess they might as well be.