The debt ceiling

**Nishu** · 07-02-2011, 03:54 PM

--This isn't meant to be a debate thread! This is for informational purposes only. Please don't get debaty.

--

I wrote this little blurb on a military specific board I go to because of the possibility of it affecting military pay. I'm going to post it here too because I think we should probably all be a little concerned about it. If your pay was at risk when we were looking at the shutdown earlier this year, then it might be at risk again. I'm like, totally guessing.

Sorry for being such a fearmonger, but we should all probably be watching this issue. The debt ceiling was reached in May and our treasury has managed to juggle our obligations for the past month and a half to prevent defaulting. We have about a month before the party's over and we're no longer able to pay our obligations, according to Treasury Secretary Timothy Geitner. If our debt ceiling isn't raised, someone isn't getting paid.

As far as I know this has never happened before so I don't think it's possible to say exactly what will happen if our debt ceiling isn't raised. In a letter that Geithner wrote to congress earlier this year, he mentioned specifically that military pay and benefits would be at risk. (Who can really say?)

We're going to hit this limit around Aug 2nd, just two months before fiscal year 2012 begins. I don't think that this debt ceiling 'crisis' is going to help the budget talks. Hopefully they're going to have a budget in place by October, but we have to remember that the congress that almost shut down the government earlier this year is the same congress that will be drafting and hopefully passing the budget for FY 2012.

I honestly think that neither of these issues is going to be as much of a problem as the budget fiasco earlier this year, but I don't think it would be a bad idea to have a nice cushion just in case. We have much more of a warning now than we did earlier, and after that whole ordeal we've been alerted to the fact that this kind of nonsense can in fact mess with our pay.

Treasury confirms deadline for raising debt limit - Sacramento Business, Housing Market News | Sacramento Bee

WASHINGTON -- Congress has one month to raise the nation's borrowing limit or the government will default on its debt, the Treasury Department said Friday.

Treasury officials confirmed the Aug. 2 deadline in a monthly update that assesses the nation's borrowing situation. The United States reached the $14.3 trillion limit in May. Higher revenue and accounting maneuvers have allowed the government to keep paying its bills in the interim.

Treasury Secretary Timothy Geithner urged Congress to raise the limit and "avoid the catastrophic economic and market consequences of a default crisis."

**NikoSan999** · 07-02-2011, 03:59 PM

Mn state has already shut down if I'm not mistaken. I know something happened there and whatever it is my heart goes out to the state. Not debating, just so very sorry.
I know this will affect us too as United States wide and global do.
Son and daughter in law both career military.

**Nishu** · 07-02-2011, 04:05 PM

Washington state almost shut down earlier this year. They just closed their tourism office, I hear. That's happening all over the country. (Not specifically due to the debt ceiling but probably related.)

The debt ceiling was raised 7 times under Bush so I really don't think this will be an issue but... I dunno, it's something we should keep an eye on.

**ladytoysdream** · 07-02-2011, 07:19 PM

QUOTE /
1. The government has reached the debt ceiling and is raiding federal pension funds to keep operating. Expected to continue until August 2nd when they'll have to find another source of operating revenue in order to keep the doors open. If they haven't resolved this come August, keep your hand on your wallet. Congressional Budget Office releases the numbers - 32nd straight month that the federal government has ran a deficit.
/ UNQUOTE

Nothing new for our government. SPEND SPEND SPEND.
I guess no one in public office knows what a budget is anymore.
And if they need more money, JUST RAISE TAXES.
Our local county government is going to be asking for a 20 % increase for the property taxes next year

They say it is because of all the state cutbacks.

**mh3rdwheel** · 07-02-2011, 08:51 PM

To me it seems like any President (Democrat, Reblican, Indepent) would quit sending our hard earned money we would not be here.

I also know that you did not mean to start a debate thread and sorry that I have gone there.

**Nishu** · 07-03-2011, 12:18 AM

I didn't mean to make people afraid to express any opinion at all, I just didn't want any partisan finger pointing, you know?

The situation sucks and it is ridiculous.

Honeslty I'm a little worried about our debt situation. There just seems to be a perfect storm of bad circumstances brewing around our country right now and the debt is no small part of it.

**ladytoysdream** · 07-03-2011, 07:52 AM

Originally Posted by Nishu

Honeslty I'm a little worried about our debt situation. There just seems to be a perfect storm of bad circumstances brewing around our country right now and the debt is no small part of it.

I am quite concerned also. I hope people are paying attention.
What I been reading online, worries me. And like a lot of things, the big wigs at the top, don't tell us everything. They treat us like mushrooms. Keep us in the dark as long as possible and feed us B.S.

**Debbie-cat** · 07-03-2011, 11:18 AM

Originally Posted by ladytoysdream

and like a lot of things, the big wigs at the top, don't tell us everything. They treat us like mushrooms. Keep us in the dark as long as possible and feed us b.s.

Love this!!!!!!

**Missourimom** · 07-03-2011, 10:06 PM

I have an opinion, but I should just shut up and keep it to myself. I do know this much, if I've reached my credit limit and I can barely pay my bills, I shouldn't ask to have my credit increased.

**thefrug** · 07-04-2011, 08:45 AM

This is why you stockpile. Store what you eat, eat what you store. Even if they do raise the ceiling,the rices of foods nd other good will go up. Has anyone noticed the prices of things? Just because theres a "sale" sign in front of it on the shelf, doesn't mean that the price hasn't gone up. The Fed will just print more money which cause inflation, which will cause prices of everything to go up and people's checks won't be keeping pace. It's gonna get hard people. And YES, I'll be a fear monger, come and beat me up ha ha.

**227melissa** · 07-05-2011, 10:18 PM

I will not rant do that on Yahoo, but please someone make the rich pay their share. Debt and income MUST be even. If you owe say 1 trillion you must have an income of 1 trillion hopefully less so you can put into a savings fund or rainy day fund. Don't worry I believe they need to cut as much as they increase revenue if not more. Every one on FV knows this why don't they??????

**MRAHoffman** · 07-06-2011, 06:50 PM

like the comment I heard yesterday..."If you were in a financial fix, you would cut your spending AND either work overtime or get a second job to bring in more revenue"...NOW, I'm going to get off my soap box and have some ice cream

**NikoSan999** · 07-06-2011, 10:05 PM

This hit the headlines this evening...or least new to me. This isn't going well...we're in deep do do

Rep. Tim Scott Floats Impeachment If Obama Invokes 14th Amendment On Debt Limit (VIDEO)

with video

**frugal-fannie** · 07-06-2011, 11:14 PM

My understanding is they have other ways to not default. But the President doesn't want to loose the opportunity of wasting a good emergency. They may have raised the debt ceiling before. But we are in uncharted waters. The Republicans have to stay strong. If they bend we may not be able to get the cuts to keep us from defaulting in the future.

**Nishu** · 07-07-2011, 12:41 PM

They raised the debt ceiling many times under a Republican president. From what I'm reading, there's little that's new about this situation. After having followed the budget issue from earlier this year, I'm pretty confident that both parties will take advantage of the crisis.

As to finding ways not to default, that's what they've been doing the past month and half. We actually hit the debt ceiling in mid-May and we've been juggling since then.

Congressional Republicans are currently taking a hardline stance with the White House and Democratic leaders in the negotiations over the debt ceiling. The United States has already hit the statutory debt limit, but the Treasury Department is keeping the United States out of default through a number of “extraordinary measures.” Sometime in August those “extraordinary measures” will be exhausted, and the result could be an “economic catastrophe” according to economists. Republicans are insisting on significant deal to cut trillions in spending before they agree to raise the debt limit, but a look back in history shows the GOP was not always so demanding.

As Think Progress documents, the Republicans in Congress voted 19 times to increase the debt limit under the presidency of George W. Bush. The debt limit was increased by over $4 trillion during the Bush years, and the Republicans required no offsetting spending cuts or tax increases in order to raise the debt ceiling. The current “big four” Republicans leaders (Speaker John Boehner, House Majority Leader Eric Cantor, Senate Minority Leader Mitch McConnell, and Senate Minority Whip Jon Ky) all voted “yea” for well over $3 trillion in debt limit increases without any demands for spending cuts.

Republicans never demanded spending cuts to raise the debt ceiling under Bush - National Political Buzz | Examiner.com

In the time under Bush, it was the Democrats who were crying about our debt load. Please do not forget this.

I'm not blaming the Republicans, only trying to point out that this is a heavily partisan issue and that we can't fall into the trap of blaming either party for what's going on. To do so would just makes us tools to the political machine.

Treating the debt ceiling like the lynch pin in our countries finances is a huge mistake, in my opinion. If our country were a household of financial chaos being run by Mr. and Mrs. Spendy McSpendypants, would not increasing their credit card limits be what changes their ways? Maybe, but not before considerable financial disaster. If Mr. and Mrs. were putting 40% of their household expenses on credit cards and those cards suddenly ran out, Mr. and Mrs. McSpendypants probably won't be eating. Their gardner doesn't get paid, their sitter doesn't get paid, their charitable donations stop and their security system gets shut off for nonpayment. I don't know what is going to happen when our timer ticks down on Aug 2, but all things being equal, I'd prefer not to know.