You got it. Ol' take-it-to-the-bank Uncle Sam, about to default on its debt unless congress passes an emergency resolution to lift the debt ceiling.
Obviously, I think congress will do just that, after some brinkmanship and political point scoring by both sides (Democrats: Republicans are out of control with spending. Republicans: Democrats are obstructionists and un-American)
But this should give you a glimpse into the future, when we really are near total default due to our debt liabilities and our entitlements spinning out of control.
WASHINGTON, March 6 (Reuters) - U.S. Treasury Undersecretary Randal Quarles said on Monday the government had accessed the last of its liquidity tools to stay under its $8.184 trillion statutory debt ceiling.
The treasury said earlier it is auctioning a 6-day cash management bill and suspending new investments of the Civil Service Retirement and Disability Fund. It said it also will likely auction a one-day cash management bill to avoid breaching the ceiling.
Treasury previously dipped into other government pension ane foreign exchange funds and has halted sales of State and Local Government Series securities (SLGS).
"Today we have begun accessing the last one. So we've used all the other tools," Quarles said following a speech to state treasurers.
Quarles, who is in charge of domestic finance, also said the government was "running out of room" under the debt ceiling and it was imperative that Congress act to lift it before the March legislative recess.
He said Treasury has been speaking regularly with members of Congress to persuade them to lift the debt ceiling and he believes that they are taking the situation seriously. He said there were "real costs" associated with using such tools to stay under the limit.
March 13, 2006
US days away from defaulting on its debt payments
Subscribe to:
Post Comments (Atom)
15 comments:
Here's a novel idea Keith, how about Congress spending LESS?
Sorry, I forgot we are tallking about politicians.
Yes, after much handwringing and namecalling, Congress will raise the debt level for our own "best interest." EIGHT TRILLION DOLLARS.
We are spending our children and grandchildren's money. We will never be able to pay this back and the interest alone will begin to consume more and more of our GDP.
A pox on all of the self serving, money grubbing politicians.
This really pisses me off - the damn spendthrift Congress. How about I run for Congress and when you vote me in my single goal will be a balanced budget amendment (except in times of EXTREME economic duress). 2001/2002 did not qualify.
Raise the Debt Ceiling
Raise the Debt Ceiling
Raise the Debt Ceiling
Raise the Debt Ceiling
Raid Social Security Trust Fund
Raise the Debt Ceiling
Raise the Debt Ceiling
Raise the Debt Ceiling
Raise the Debt Ceiling
All in a day's work by Congress and the President!
There is no Social Security Trust Fund. Nothing, all gone.
The sooner we repeal Bush's tax cuts for the rich, the better off we'll be.
And the later we do it, the more shit will hit the fan.
George Bush, you're no Bill Clinton!
George Bush, you're no Ronald Reagan. And you're no George Bush (#1).
It's too bad the country is stuck with this government (Congress included)
I think you'll see some serious "throw the bums out" voting in November. All incumbents. These guys suck. The Democrats are likely even more discoherent and incompetent, we just don't know since they're out of power and invisible.
But Bush? The worst president of the century. History will not be kind.
Housing Panic,
Listen to me just this once.
YOU ARE WRONG ABOUT GOLD BEING A GOOD INVESTMENT
YOU ARE WRONG ABOUT THE US DOLLAR CRASHING
YOU ARE WRONG ABOUT OIL BEING A GOOD INVESTMENT
Oil will crash, taking gold with it and sending the dollar higher.
JUST TRYING TO HELP
And now, the end is near;
And so I face the final curtain.
My friend, I’ll say it clear,
I’ll state my case, of which I’m certain.
I’ve lived a life that’s full.
I’ve traveled each and ev’ry highway;
And more, much more than this,
I did it my way.
Regrets, I’ve had a few;
But then again, too few to mention.
I did what I had to do
And saw it through without exemption.
I planned each charted course;
Each careful step along the byway,
But more, much more than this,
I did it my way.
Yes, there were times, I’m sure you knew
When I bit off more than I could chew.
But through it all, when there was doubt,
I ate it up and spit it out.
I faced it all and I stood tall;
And did it my way.
I’ve loved, I’ve laughed and cried.
I’ve had my fill; my share of losing.
And now, as tears subside,
I find it all so amusing.
To think I did all that;
And may I say - not in a shy way,
No, oh no not me,
I did it my way.
For what is a man, what has he got?
If not himself, then he has naught.
To say the things he truly feels;
And not the words of one who kneels.
The record shows I took the blows -
And did it my way!
Wow, I'm surprised no one commented on how that story is a week old and we have already breached the deficit ceiling!
So how are we still running? The treasury is borrowing money from government pension plans. It promises to pay it back fully with interest.
The treasury can soon run out of creative options.
Congress is really being idiotic for not addressing this issue. This cannot be a good thing for USD bulls.
YOU ARE WRONG ABOUT THE US DOLLAR CRASHING
It won't be a crash, it will be slow, just slow enough so you won't notice it.
Gold will be at $2900 by 2010. Don't expect a straight line.
LOL, yeah, scared me out of buying gold. What a investing mastermind.
Now that the BOJ and China are cutting back on their treasury purchases, how is the Fed going to stop the bleeding? Isn't it a coincidence that they chose to stop reporting M3 this month?
Damn bastards. They are going to monetize this debt and turn this country into some piss poor 3rd world nation. Anyone remember Brady bonds? That's us in a few years.
When Britain lost its manufacturing base it currency was cut in half and then cut in half again...think about that.
Just a thought!!-some interesting comments made to this site.
Need a solution? Come to my site http://www.easy-forex-broker.ssr.be It is about currency rboker and more. Take care.
Hi Blogger, I found your blog quite informative.
I just came across your blog and wanted to
drop you a note telling you how impressed I was with it.
I give you my best wishes for your future endeavors.
If you have a moment, please visit my austin office space lease site.
Have a great week!
Post a Comment