Geithner Urges Raising of Debt Limit

#1
volinbham

volinbham

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#1
:shakehead:

Lawmakers Urged to Raise Nation's Debt Limit - WSJ.com

WASHINGTON -- U.S. lawmakers, already under pressure to move controversial health-care legislation and a revamp of the financial system, were saddled Friday with the unpopular task of quickly increasing the maximum amount of money the federal government can borrow.

Treasury Secretary Timothy Geithner, in a letter to sent to top U.S. lawmakers on Friday, asked Congress to move "as soon as possible" to increase the nation's statutory debt limit. The Treasury estimates that the $12.1 trillion current limit could be reached as soon as mid-October, Mr. Geithner wrote.

"It is critically important that Congress act before the limit is reached so that citizens and investors here and around the world can remain confident that the United States will always meet its obligations," Mr. Geithner said in the letter.
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One issue that will need to be decided is how much of an increase is needed. Mr. Geithner didn't offer a specific figure in his letter to lawmakers. A Treasury official said Monday that the debt increase is due to the deterioration in the economy and not necessarily attributable to spending on stimulus programs or the bailout of the financial system.

"The president has made it clear that as soon as recovery is firmly established we will bring our fiscal deficit down to a level that is sustainable in the long term," the official said.
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:lolabove:
 
#3
#3
I expect Obama supporters to flood this thread defending his fiscal policies. You just wait, it will crash the server.
 
#4
#4
Next, they will wont to make Monopoly money legal U.S. tender. If so, I will be rolling in the dough!!
 
#5
#5
Geithner Asks Congress to Increase Federal Debt Limit - WSJ.com

Washington -- U.S. Treasury Secretary Timothy Geithner asked Congress to increase the $12.1 trillion debt limit on Friday, saying it is "critically important" that they act in the next two months.
Mr. Geithner, in a letter to U.S. lawmakers, said that the Treasury projects that the current debt limit could be reached as early mid-October. Increasing the limit is important to instilling confidence in global investors, Mr. Geithner said.
The Treasury didn't request a specific increase in the letter.
"It is critically important that Congress act before the limit is reached so that citizens and investors here and around the world can remain confident that the United States will always meet its obligations," Mr. Geithner said in a letter to lawmakers.
Mr. Geithner said the that it is "clearly a moment in our history" that requires support from both Democrats and Republicans for the increase.
"Congress has never failed to raise the debt limit when necessary," Mr. Geithner said.
The non-partisan Congressional Budget Office said Thursday the federal government's budget deficit reached $1.3 trillion through the first ten months of fiscal 2009, on track to reach a record high of $1.8 trillion for the 12-month period.
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Thoughts other than these fools.....

printing_money_for_aig.jpg
 
#7
#7
So, if I am $30,000 in debt, I should just go to the bank and ask for $35,000 to pay off my $30,000 debt. Then borrow $40,000 later to pay off my $35,000 debt. This doesnt seem to work. Seems like I just keep getting further in debt. How does this work for our Government? And we need these people running this country.
 
#8
#8
CountVolcula said:
So, if I am $30,000 in debt, I should just go to the bank and ask for $35,000 to pay off my $30,000 debt. Then borrow $40,000 later to pay off my $35,000 debt. This doesnt seem to work. Seems like I just keep getting further in debt. How does this work for our Government? And we need these people running this country.
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Frankly, it works as long as debt to income remains reasonable.
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#13
#13
CountVolcula said:
True!! But not practical!! Everyone should learn to live within their means, including the Government.
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But manageable debt works. It also provides the basis for debt pricing and most financial analysis in this country. Rf is a big deal.
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#14
#14
BigPapaVol said:
The bolded portion and ensuing smiley leads me to believe that you don't really buy comments from this admin. Posted via VolNation Mobile
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Oh no. I fully trust and believe them. The smiley was from a funny Marmaduke I saw in the comics while typing my response...
 
#16
#16
I understand that their is no way for everyone to own some things without borrowing, especially the lower to middle class. Houses, cars, etc are just too much for anyone, except the wealthy, to pay out of pocket, but it could be done. My problem is borrowing money for "luxury" items that we dont necessarily need for everyday life. This is where we get into trouble. Keeping up with the "Jones'" can become dangerous for some who cannot manage money. When you owe as much or more than you make, then you are constantly feeding that debt monster that never seems to go away. It then makes it difficult to save up for retirement, college for kids, etc. The government has been notorious for mis-management of money. Just like wanting to buy $500 million in new planes for Congress, $2 million on studying cow farts, and $4000 hammers.
 
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#18
#18
rjd970 said:
Understand, but I just can't see myself staying in debt forever, no matter how attractive my debt to income is.
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I understand that point, but it's still the same risk level or less as lon. As debt to income remains fixed. I would argue for the decreased risk, but why bother. It's not worse. From a national perspective, the risks are really remote and the securities are an enormous investment vehicle.
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