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Thread: America's credit limit maxed out; government shut-down imminent

  1. #1
    Elite Member Grimmlok's Avatar
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    Unhappy America's credit limit maxed out; government shut-down imminent

    SALON.com

    For all of the president's talk about cutting the deficit in half by 2009, we sure seem to be headed in the wrong direction. Before the Senate leaves for spring break later this month, it will have to vote to increase the nation's $8.18 trillion debt limit -- or risk shutting down the government entirely.

    To be fair, the deficit and the debt are two different things. Think of them in family-finance terms. The deficit is the amount you dump on your credit card each month when your income doesn't quite match your outgo. The debt is the total balance that you owe as a result. And it all works just fine -- if a little expensively -- until you reach your credit limit and can't dump the difference on your card anymore. That's what's happening now in Washington; the government's credit limit -- its "debt limit" -- is maxed out.

    And if you've ever felt a little shame when calling your credit card company to beg for a larger credit line, then you've got a pretty good sense of how Senate Republicans are feeling just now. Going back for more is a tacit admission that the president's fiscal policies aren't working so well -- you can't deliver massive tax cuts, finance a costly war of choice and cut the deficit at the same time -- and the GOP wants to make it as quietly as it possibly can.

    Although the government will run out of money around March 20, Senate Majority Leader Bill Frist hasn't quite gotten around to scheduling a debate on raising the debt limit just yet. Watch for him to ram it through quietly and quickly just before the Senate leaves town in a couple of weeks. In the meantime, the Democrats will argue that the increase in the debt limit is a subject worthy of long and agonizing televised debate. "A substantial increase in the debt burden on American taxpayers is too important a matter to be rushed through the Senate without a complete debate on the current course of U.S. fiscal policy," Sens. Harry Reid, Max Baucus and Kent Conrad wrote in a letter to Frist Thursday.

    And what about Bush's promises of deficit reduction? The Treasury Department reported last fall that the deficit for 2005 was $319 billion, down about $94 billion from the record deficit of 2004. But as Congress Daily reports, another Treasury Department report released in December put the 2005 deficit at $760 billion. The difference? The second report calculates the deficit on an "accrual" basis -- counting the benefits the government owes to veterans and government employees, just like a private company would.

    If you're thinking this is all a little hard to take from an administration that preaches "personal responsibility" and sends its vice president out to tell people they should save more money, well, you said it, not us. But if you're thinking that you're going to start paying down your debts to set a good example for your elected officials, we need to warn you that you'd better think twice. When a Rhode Island couple made the decision to pay off their JCPenney platinum MasterCard recently, they say they were told that the $6,522 payment they sent in couldn't be processed immediately because the Department of Homeland Security would have to be notified of such suspicious activity first.
    I am from the American CIA and I have a radio in my head. I am going to kill you.

  2. #2
    Hit By Ban Bus! UndercoverGator's Avatar
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    Default Re: America's credit limit maxed out; government shut-down imminent

    I hope it's not as dire as all that. Mr. Gator is a GS 15 and we depend on his paycheck.

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    Elite Member Grimmlok's Avatar
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    Default Re: America's credit limit maxed out; government shut-down imminent

    What the hell is a GS 18?
    I am from the American CIA and I have a radio in my head. I am going to kill you.

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    Hit By Ban Bus! UndercoverGator's Avatar
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    Default Re: America's credit limit maxed out; government shut-down imminent

    GS is a government rating of employee level. I don't know what an 18 level would be, Cabinet level perhaps?

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    Elite Member Grimmlok's Avatar
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    Default Re: America's credit limit maxed out; government shut-down imminent

    Well.. tell your gov to stop spending itself into oblivion and letting the chinese bankroll your society
    I am from the American CIA and I have a radio in my head. I am going to kill you.

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    Elite Member miss_perfect's Avatar
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    Default Re: America's credit limit maxed out; government shut-down imminent

    Quote Originally Posted by UndercoverGator
    I hope it's not as dire as all that. Mr. Gator is a GS 15 and we depend on his paycheck.
    I hear you...my dad is a GS 14...I hope this isn't the case either!

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    Hit By Ban Bus! pacific breeze's Avatar
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    Default Re: America's credit limit maxed out; government shut-down imminent

    Ya can't keep giving massive tax cuts to the rich and spending freely. As Repub. govt after Repub govt has proved, after leaving massive deficits for the Democrats to clean up, the trickle down theory of economics DOES NOT work. But then they already know that. That's why the rich keep getting richer.

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    Elite Member Grimmlok's Avatar
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    Default Re: America's credit limit maxed out; government shut-down imminent

    Bush is a retard. Massive tax cuts, and then spending beyond the income to an insane degree.. wtf did he think would happen?

    The second he went to war, he should have cancelled any tax cuts. You need money to FUND things.

    more on this, the senate looks to be in revolt over it...watch Bush spin this using the paragraph i'll highlight..

    WASHINGTON (Reuters) -- A nasty budget fight is brewing in Congress as Senate Democrats and some conservative Republicans said on Friday that they will not support efforts this month to increase U.S. borrowing authority, a move needed to avoid a government default.

    Democrats, who hope to gain control of the House and Senate in this year's congressional elections, are looking for a debate on the credit limit to highlight the nation's mounting debt at a time when President Bush also is pushing to make his tax cuts permanent.

    In a speech on the Senate floor, Senate Minority Leader Harry Reid put all 55 Senate Republicans on notice that they "are going to have to belly up to the bar and vote to increase the debt," saying it was Republican budgets that have created the massive deficit spending requiring more federal borrowing.

    "Democrats are not going to vote to increase this debt," Reid said.

    Without an increase in U.S. borrowing authority, the federal government could face default. That would mean Washington would not be able to continue writing checks for a variety of activities, from meeting federal workers' payrolls to paying some retiree benefits. Federal parks could close, aid for the poor could be withheld and the space shuttle likely would be docked.

    Last April, without any support from Democrats, the Senate and House of Representatives approved a fiscal 2006 budget plan that envisioned the need for increasing U.S. borrowing authority by $781 billion.

    More recently, Treasury Secretary John Snow urged Congress to increase the statutory debt limit, as his agency was bumping up against the $8.18 trillion limit.

    In mid-February, Senate Finance Committee Chairman Charles Grassley, an Iowa Republican, told Reuters he hoped the legislation would be quietly brought to a vote just before the Senate's next recess, which is set for March 18.

    The debt ceiling increase historically has been politically distasteful and some conservative Republicans in the Senate could join Democrats in opposing the increase.

    "It's highly unlikely that I can support a debt limit (increase) without major structural change that brings the spending under control," Republican Sen. Tom Coburn of Oklahoma told Reuters.

    Coburn said the need to increase the debt limit offered "a great opportunity to put as much pressure as we can" to bring down government spending.

    But quick passage in Congress of legislation to cut hundreds of billions of dollars in spending this year is unlikely. Congress is still recovering from a bruising, yearlong fight to trim $39 billion over five years.

    It is also unlikely lawmakers would want a repeat of the public backlash in the 1990s when congressional Republicans forced a series of brief government shutdowns in a budget fight with then-President Bill Clinton.

    House Democrats also have warned that they would oppose a debt limit increase without also putting into place a plan to eventually balance a federal budget that could see a deficit of around $400 billion this year.
    That'll be how he does it.. "Oh democrats don't like poor people, they want to stop their payments..."
    I am from the American CIA and I have a radio in my head. I am going to kill you.

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    Elite Member Sojiita's Avatar
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    Default Re: America's credit limit maxed out; government shut-down imminent

    Quote Originally Posted by pacific breeze
    Ya can't keep giving massive tax cuts to the rich and spending freely. As Repub. govt after Repub govt has proved, after leaving massive deficits for the Democrats to clean up, the trickle down theory of economics DOES NOT work. But then they already know that. That's why the rich keep getting richer.
    Exactly. Those fucking rich bastards..how they keep this sham up is just beyond me..this country must be populated by more morons that I ever thought possible.

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    Silver Member snakebread's Avatar
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    Default Re: America's credit limit maxed out; government shut-down imminent

    The thing is, everybody is so enamored by celebrity culture and xenophobia that they think they're rich and are brainwashed by republicans. For example, my mother-in-law, whose total income (with her husband) is probably $35,000 a year: NOT MUCH. She lives in a neighborhood that has been settled by a lot of Mexican families recently... So she hates Mexicans and sees people on welfare and hates the idea that her taxes are going to pay welfare so she votes republican. And she thinks she's cool and hip and everything else and wants to identify with this "upper-class" culture. But in reality she IS the poor of America. And she's getting screwed because of the tax loopholes--created by Bush and Regan--that I, as someone who makes >$150,000/year by myself, can take advantage of. And I'm not even considering the lowering of taxes on inheritance and all that crap. So, yes, Americans are morons. It won't change, either.

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    Elite Member Mr. Authority's Avatar
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    Default Re: America's credit limit maxed out; government shut-down imminent

    Not to mention that there are alot of greedy corporations that take advatage of thse tax-cuts. Look at how Wal-Mart gets away with having employees under the poverty-line and without health benefits. It's messed up that corrupt businesses are ruining people's lives and yet the government panders to the upper-class folks. this is not how "the richest country in the world" should be like. The US should be a prime example of income eqaulity, not a cast system of rich and poor.

    I would like to see how the business talking heads in the MSM spin this story.

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    Gold Member ohmygoodness's Avatar
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    Default Re: America's credit limit maxed out; government shut-down imminent

    My Political Science professor whose research has been concentrated mostly in political theory, gets so mad with George Bush because he "screws up [her] lectures!" Since he's technically supposed to be a lot more conservative in terms of spending, but he's not, and it's going against his professed political theory! Lol.

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    Friend of Gossip Rocks! ourmaninBusan's Avatar
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    Default Re: America's credit limit maxed out; government shut-down imminent

    When a Rhode Island couple made the decision to pay off their JCPenney platinum MasterCard recently, they say they were told that the $6,522 payment they sent in couldn't be processed immediately because the Department of Homeland Security would have to be notified of such suspicious activity first.
    Bad news -- the terrorists HAVE won. They've changed the American
    way of life into a police state. When Big Brother has to be notified
    because you don't want to be in debt forever, then you've lost.

    ♫` ∴|| ~∞≠∝ ♫♪ $ -4C

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