[Grimnir]

$this->bbcode_second_pass_quote('Falconoffury', 'R')aiding? You make them sound like pillagers with medieval weapons and animal skin clothing. I guess they might as well be.

[rogerhb]

$this->bbcode_second_pass_quote('Falconoffury', 'R')aiding? You make them sound like pillagers with medieval weapons and animal skin clothing. I guess they might as well be.

[smiley]

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

[Jack]

$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."

[DantesPeak]

US yearly budget deficits will likely be in the $1 trillion range about 2016 (if there is no inflation), mostly because of retirement, medicare and social security benefits coming due to the newly retired.

So the debt limit is a problem to politicians only because it heightens awareness of a very serious long term problem for the dollar. Just like PO will make oil less available in the future, the dollar will have less value in the future - but the powers that be don't really want us to prepare for either problem.

[Novus]

$this->bbcode_second_pass_quote('nth', '
')Anyways, I wish Congress do nothing and let the US go into default.
Let's see what will happen after that.
hahaha

[jaws]

$this->bbcode_second_pass_quote('Jack', 'I')t would be ironic if we discovered a solution to Peak Oil, but lacked the means to implement it.

[Tyler_JC]

You guys make it sound like the US Government is Ford Motor Company! Ha!

When the US Government needs more money, it asks the Department of Treasury for help. In turn, John Snow asks the Federal Reserve to create money in a mystery bank in the Carribean and buy US Treasury Bonds.

The government doesn't actually follow the laws it creates. Why should it? The debt ceiling is more of a temporary debt "guideline".

Granted at some point people will notice something isn't making sense.

The Feds could refinance at today's low rates and save themselves a lot in interest payments. But I doubt our creditors would go for that.

[dooberheim]

$this->bbcode_second_pass_quote('Eli', '[')url=http://www.breitbart.com/news/2006/03/14/060314155502.5zgxciv2.html]John Snow talking about the US Gov defaulting[/url]

$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.

[nth]

$this->bbcode_second_pass_quote('alecifel', 'w')hat good is a salary of $1000 a week, when bread costs $200?

[DantesPeak]

Well, here is something you don't see everyday. The debt limit situation must be getting critical:

$this->bbcode_second_pass_quote('', 'T')reasury Postpones Auction Announcement

The announcement of 13-week and 26-week bills to be auctioned March 20, 2006 has been postponed pending action in Congress on legislation increasing the debt ceiling.

[DantesPeak]

I guess cancelling Treasury auctions was the last straw. The Senate passed the limit by 52-48:


$this->bbcode_second_pass_quote('', 'S')tatement of Secretary John W. Snow on Debt Limit

I commend Congress for protecting the full faith and credit of the United States with today's action on the debt limit. This legislation ensures that the U.S. can deliver on promises already made, such as Social Security and Medicare payments and aid for the victims of the 2005 hurricanes.

[Falconoffury]

If any private individual, business, or other private entity begin paying off debts with more debts, and don't attempt to rapidly rectify the situation, then his finances will spiral out of control and he will have no choice but bankruptcy. Is it any different with the national government?

[smallpoxgirl]

$this->bbcode_second_pass_quote('Falconoffury', 'I')f any private individual, business, or other private entity begin paying off debts with more debts, and don't attempt to rapidly rectify the situation, then his finances will spiral out of control and he will have no choice but bankruptcy. Is it any different with the national government?

[Grimnir]

The situation with governments isn't like citizen vs. bank or citizen vs. credit card company where one side holds all the cards. It's more like borrowing money from a friend or relative. If you decide not to pay they can't do a whole lot about it, but they'll probably never trust you again.

[Geko45]

For you folks keeping track at home, the new ceiling of $9 trillion will be reached in 372 days at the current rate of $2.1 billion per day.

[Falconoffury]

I guess money itself is really a ponzi scheme, and the government really is a scammer. It really didn't have to come out like this. The government could have done much better with its finances over the past 30 years, but they probably know that the party is almost over, and they want to go out with a bang.

[Geko45]

$this->bbcode_second_pass_quote('Falconoffury', 'I') guess money itself is really a ponzi scheme, and the government really is a scammer.

[sicophiliac]

Well just today they raised the debt ceiling to around 9 trillion dollars! Now based on my limited understanding I can understand a large sum of debt really cant hurt us, otherwise it would have already done so long long ago but my main concern is the accumulation of foreign debt we have. I beleive more then half the money we borrow comes from foreign banks which gives nations like China for example more geopolitical leverage against us if they so choose to use it. No doubt before Bush gets through with his deficit expansion plan (tax cuts for the rich) well have more then doubled the debt we were in when he took office.

[oilluber]

$this->bbcode_second_pass_quote('Geko45', '')$this->bbcode_second_pass_quote('Falconoffury', 'I') guess money itself is really a ponzi scheme, and the government really is a scammer.