Congress Votes Itself a $290 Billion Credit Limit Increase

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machinehead's picture
machinehead
Status: Diamond Member (Offline)
Joined: Mar 18 2008
Posts: 1077
Congress Votes Itself a $290 Billion Credit Limit Increase

It's Christmas in Washingtoon. And Kongress just voted itself a nice present -- at our expense:


WASHINGTON (AP) - The House on Wednesday passed legislation giving the federal government the ability to borrow a whopping $290 billion to finance its operations for just six additional weeks.

The 218-214 vote sends the must-pass bill to the Senate, which is expected to approve it as its last act before adjourning for the year. The alternative would be a market-rattling, first-ever default on U.S. obligations.

http://apnews.myway.com/article/20091216/D9CKL24O0.html

Gotta love the logic -- can you imagine telling your banker, "Yeah, I'm solid -- I just got a new credit line, so I can borrow to meet the interest payments on my existing loan"?

One of these days, creditors of the U.S. Treasury are going to figure out that not only is Usgov insolvent -- but also, the slightest hiccup in its ability to borrow will result in near-instantaneous default. The government doesn't have any money. It lives hand to mouth.

Anthropomorphised, the mighty, nuclear-armed Uncle Sam is nothing but a down-and-out tubercular drifter on the seedy end of the Vegas strip. He's got 37 cents in his pocket, and is trying to raise bus fare to move on to the next town before the cops get in his grizzled face. What a pathetic loser. He coulda been a contendahhhh ...

As you might expect, the handful of KongressKlowns who actually want a decisive vote on the desperate need for $50 billion a week of new borrowing are roundly despised by their colleagues:

House Democrats were furious with Sen. Russ Feingold, D-Wis., who, because of his opposition to the wars in Iraq and Afghanistan, refused a request from his leadership to support putting the short-term increase in the debt limit into the defense measure. His move required his fellow Democrats in both House and Senate to vote on the measure without accompanying political cover.

"It sucks," said Rep. Dennis Cardoza, D-Calif. "I don't think Feingold could get five votes for anything right now."

Charades that can't go on, WON'T go on. The U.S. fedgov's risible shell game is gonna blow sooner than people think. We're the Greece of the western hemisphere. We're outta control. Somebody stop us, before we hurt ourselves!

cmartenson's picture
cmartenson
Status: Diamond Member (Online)
Joined: Jun 7 2007
Posts: 5729
Re: Congress Votes Itself a $290 Billion Credit Limit ...

Well,

that was all perfectly necessary, especially after the $446.8 billion omnibus spending bill got passed last week that had an average 12% increase acrosss all federal departments and was stuffed with more than 5,000 earmarks.

If Congress isn't willing to go on an unconstrained spending spree, then how can we expect everyone else to join the party?

 

machinehead's picture
machinehead
Status: Diamond Member (Offline)
Joined: Mar 18 2008
Posts: 1077
Re: Congress Votes Itself a $290 Billion Credit Limit ...

How do you lend securely to a broke deadbeat? Same way a pawn shop does -- take collateral. Our largest creditor -- China -- is thinking along these lines:

Emboldened by newfound wealth, China has been on a noisy campaign to reclaim relics that disappeared during its so-called century of humiliation, the period between 1842 and 1945 when foreign powers subjugated China through military incursions and onerous treaties.

For the past two weeks, the delegation of Chinese cultural experts has swept through American institutions, seeking to reclaim items once ensconced at the Old Summer Palace in Beijing, which was one of the world’s most richly appointed imperial residences until British and French troops plundered it in 1860.

China’s “treasure hunting team” descended on the Metropolitan Museum of Art in New York last week, and James C.Y. Watt, the patrician head of Asian art, braced for a confrontation.

With a crew from China’s national broadcaster filming the visit, the Chinese fired off questions about the provenance of objects on display, and when it came to a collection of jade pieces, they requested documentation to show that the pieces had been acquired legally.

http://us.mc522.mail.yahoo.com/mc/showMessage?.rand=1674607610&mid=1_266...

Yep. The repo guys have arrived. And they want their stuff back.

Soon they'll be doing collateralized lending. Mortgage the Golden Gate Bridge, the Statue of Liberty, and the White House, and we'll lend you another trillion. But it won't be cheap, my red-haired ghost, gweilo friends.

Never mind. It's the season to be thankful, comrades. At least our foreign lenders aren't sending round vans to collect blood from hapless consumer-depositors, as grassroots payment-in-kind on the national debt.

This is all the result of America's delusory dream of imposing a post World War II global military empire. Sixty-four years of feckless windmill tilting have turned a former industrial colossus into a Third World basket case. Curiously, almost no one knows it yet. Gonna be a hell of a note when they hold a Treasury auction, and no one bids except the Man of the Year, Ayatollah Benny.

 

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