03-03-2006, 09:16 PM | #1 | ||
Death Herald
Join Date: Nov 2000
Location: Le stelle la notte sono grandi e luminose nel cuore profondo del Texas
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[POL] National Debt ceiling debate
http://money.cnn.com/2006/03/03/news...reut/index.htm
It will be interesting to see if anything happens with this, or if it all just becomes a bunch of grandstanding from each side. The Senate has to approve an increase in the debt ceiling, otherwise the Treasury can't borrow any extra money. $8.18 trillion is a lot of money to be owing out there. But since this is an election year, I don't see anyone voting to reduce services to their constituents.
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Thinkin' of a master plan 'Cuz ain't nuthin' but sweat inside my hand So I dig into my pocket, all my money is spent So I dig deeper but still comin' up with lint |
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03-03-2006, 09:27 PM | #2 |
College Starter
Join Date: Jan 2004
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From now on I vote strictly Libertarian.
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03-03-2006, 09:27 PM | #3 |
General Manager
Join Date: Oct 2000
Location: The Satellite of Love
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The words "I told you so" are so very appropriate at this time.
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03-03-2006, 09:54 PM | #4 |
Grizzled Veteran
Join Date: Dec 2003
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Debt by itself is not an issue, as long as servicing the debt isn't a problem - (which it isn't now for the US, and which it is not likely to be in the near future) - this is much ado about nothing.
Last edited by Crapshoot : 03-03-2006 at 09:54 PM. |
03-03-2006, 11:57 PM | #5 | |
Grizzled Veteran
Join Date: Sep 2003
Location: Fresno, CA
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Quote:
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03-04-2006, 12:13 AM | #6 | |
General Manager
Join Date: Oct 2004
Location: New Mexico
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I think for corporations and nations a little debt is actually quite a good thing. |
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03-04-2006, 07:59 AM | #7 |
Banned
Join Date: Sep 2004
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Funny are'nt these the same people that just passed a Federal Law telling people what their minimum monthly payments to their credit card companies have to be.
Look for this to be a rider on some P.C. Flag raising bill. |
03-04-2006, 08:06 AM | #8 |
Banned
Join Date: Sep 2004
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SOB.... After reading that article there is not one single mention of the WAR?
After that Bullshit War package the Republicans passed, that wasn't part of their yearly budget, they have to include the money we are spending on Bush's war somewhere. Surely the money we are spending on the WAR would be included in this 8.18 trillion dollars? This Blank check we are writing to fight Terrorism is killing us domestically. |
03-04-2006, 08:17 AM | #9 | |
College Starter
Join Date: Jan 2004
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Well, of course, when your the World's Policeman you incur certain 'obligations and responsibilities." Remember that when interest rates go through the roof over the deficits. |
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03-04-2006, 09:54 AM | #10 |
Coordinator
Join Date: Sep 2004
Location: Chicagoland
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Generally, I think it's political grandstanding in an election year. It's certainly happened before (with regard to budgetary issues, not necessarily the debt ceiling per se ). Each side can take a risk that they'll be the ones to "look good" after it's over and gain some momentum going into November.
However, one of these days (and it could be this time), enough Congresscritters could actually get serious, make it a big issue, and make some pretty major changes (i.e. cutting massive parts of the budget to avoid raising the debt ceiling). Anyway: Possibility of a "showdown" followed by a last-minute "fix": 90% Possibility of something substantive actually getting done: 10% |
03-04-2006, 09:23 PM | #11 | |
Banned
Join Date: Sep 2004
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Way to high if you ask me. I would like to see it happen, but I am not going to hold my breath. |
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03-04-2006, 09:56 PM | #12 | |
Death Herald
Join Date: Nov 2000
Location: Le stelle la notte sono grandi e luminose nel cuore profondo del Texas
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I do agree with you that our ability to service the debt at this time is not an issue. But there is a flip side to this, and it is the availability of funds to buy our debt instruments. In the past, the vast majority of government debt instruments have been bought by US concerns, either individuals or businesses. But the a combination of the amount of sheer debt and lowering amounts of savings have introduced many more foreign buyers. It is to the point now where a large amount of all money saved worldwide goes into buying US debt instruments (I need to find the link that supports this statement). That doesn't leave us with a lot of room for growth in the total amount of debt. To attract fewer free funds, the interest rates will have to go up to be able to gather these free dollars to buy US debt instruments. Another potential fly in the ointment is if OPEC goes ahead with their plan to move part of the oil pricing from Dollars to Euros. A lot of emerging/unstable economies bought up US debt instruments as a way of tempering oil prices. But if Euros also become an option, there is a great risk of a significant amount of this capital to be moved from dollars to Euros. So there is more to the puzzle than just our ability to pay the current amount of debt.
__________________
Thinkin' of a master plan 'Cuz ain't nuthin' but sweat inside my hand So I dig into my pocket, all my money is spent So I dig deeper but still comin' up with lint |
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03-05-2006, 11:00 AM | #13 | |
Coordinator
Join Date: Sep 2004
Location: Chicagoland
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I'm an optimist. |
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03-05-2006, 11:50 AM | #14 | |
College Starter
Join Date: Nov 2000
Location: South Florida
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Quote:
Actually, I seem to recall that this scenario has pretty much always been the case and that it has always caused concern among certain segments of the populace here. In the late 80s and early 90s, the big player was Japan. There was concern then because not only were they buying our debt, they were also buying up a lot of "hard" assets on U.S. soil too -- i.e. companies and real estate. Last edited by SFL Cat : 03-05-2006 at 11:52 AM. |
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