Do we really need to raise the debt ceiling?

[texansfan]

I mean, listening to some folks out there, if we don't we're headed for the Apocalypse.

We all know that the government can't control it's spending, that in reality it's both sides of the aisles that are responsible.

Bush overspent, now Obama is overspending. It's time to quit raising the debt limit.

 

[Iutoffee]

Yes, it would be devastating. The federal government would default on its payments, interest rates would rise, and it would make it mich more difficult to borrow in the future. Credit rating agencies, such as Standard and Poors, Moodys, and Fitch have issued statements that they would lower the US governments rating below the lofty AAA standard if the deficit/debt is not addressed.

 

[texansfan]

I think it's just a ploy to raise it by saying all those things.

 

[texansfan]

What about this statement?

So when we reach that $14.1 billion cap, only the 13% of total government spending which is paid with borrowed money would be in jeopardy. Eighty seven percent (87%) of what the government does would not be impacted at all. The president and the Treasury Department would then have to decide where to cut spending to cover that 15% over incoming revenue.

The scare tactic here is the claim that the response to this would be to default on our debts, thereby destroying the nation’s credit and leading to a plunge in all of our financial markets. The fallacy is that capping spending doesn’t mean there isn’t still money to spend. The government would still have plenty of incoming revenue and the ability to prioritize how it spends that money.

Interest on the debt is about half as much right now per month as the amount of deficit per month. To keep from defaulting, the government would just need to make sure that the 6.5% of the budget which goes to interest is part of the 87% which is paid rather than the 13% which needs to be cut.

 

[texansfan]

I'm not an English professor who is an economic guru or anything, but I just wonder if all these catastrophic predictions are really true or just a scare tactic.

 

[Willie99]

the govt can choose to pay the debt, thus there would be no default. But money for other programs would have some serious shortfalls

at the end of the day, maybe they would just cut everything by some certain% across the boards and live within their means. Something drastic has to happen eventually

 

[akphidelt]

Lol, yes, if the Govt defaults or stops spending to keep the country working there will be catastrophic results. Do you need this explained to you? I don't have time to draw pictures so I'm not sure you will understand!

 

[bodyforlife]

I doubt anyone needs you to explain anything. The results will do the explaining. Fucking putz!

 

[akphidelt]

I doubt anyone needs you to explain anything. The results will do the explaining. Fucking putz!

Lol, trust me, you guys have absolutely no clue. Just pissing in the wind!

 

[flashmo]

Not a goddamn thing will happen if Aug 2 comes and goes..just a smoke screen..I'm sure the money owed would be paid...the ones who'd get cut off are the freeloaders, which might be a good thing

 

[texansfan]

Lol, yes, if the Govt defaults or stops spending to keep the country working there will be catastrophic results. Do you need this explained to you? I don't have time to draw pictures so I'm not sure you will understand!

As long as the gov't pays the interest on it's debts won't we be ok? Please, don't just give me "the world will end!" bullshit, tell me why it would be a bad thing.

 

[akphidelt]

As long as the gov't pays the interest on it's debts won't we be ok? Please, don't just give me "the world will end!" bullshit, tell me why it would be a bad thing.

How is the Govt going to pay interest on it's debts if they can't spend any more? Are they going to raise our taxes? Where is that money going to come from?

This even applies to the principal. Where are they going to get that money?

 

[Willie99]

we already have catastrophic results, you're just too big of a jackass to know it

go ax daddy

 

[akphidelt]

we already have catastrophic results, you're just too big of a jackass to know it

go ax daddy

Lol, 9.2% unemployment is catastrophic? You must have never read a history book in your life. Your bad!

 

[Iutoffee]

If we aren't able to pay for domestic spending programs, this would lower our credit rating for the foreseeable future. Thus interest payments would rise significantly, and making deficit reduction that much more difficult.

 

[bodyforlife]

Comedy Gold!!!

 

[akphidelt]

Comedy Gold!!!

That's all you have to offer? No substance what so ever?

 

[texansfan]

Wouldn't the refusal to raise the debt ceiling just mean that the government would have to prioritize it's spending? We already take in enough money to pay the interest on the debts, then we would need to prioritize the money left over.

How is it any different than have a 20k limit on a credit card, but instead of paying it down every month, you just keep getting your limit extended? Isn't it time to stop spending more than we bring in?

 

[texansfan]

Wouldn't the refusal to raise the debt ceiling just mean that the government would have to prioritize it's spending? We already take in enough money to pay the interest on the debts, then we would need to prioritize the money left over.

How is it any different than have a 20k limit on a credit card, but instead of paying it down every month, you just keep getting your limit extended? Isn't it time to stop spending more than we bring in?

 

[bodyforlife]

Really...the alter ego thing again. Is that all you've got?