The Lunacy Continues 1.9/14.3 Trillion

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Davos's picture
Davos
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The Lunacy Continues 1.9/14.3 Trillion

The Lunacy Continues 1.9/14.3 Trillion

Senate Democrats are to seek an increase to the federal government's borrowing limit by $1.9 trillion lifting the total amount the U.S. government can owe to $14.294 trillion, several congressional aides said Wednesday.

 

The increase is forecast to support the federal government's borrowing needs the end of 2010, one Senate Democratic aide said.

 

The borrowing hike comes fast on the heels of a $290 billion increase to the debt ceiling agreed to by lawmakers at the end of 2009.

 

 

 

Update: Reader Steak points out the following piece of debt ceiling management insight from Politico:

 

 

 

President Barack Obama is expected to appoint a special deficit reduction commission as part of a tentative agreement between Democrats and the White House—each trying to find the votes to raise the federal debt ceiling in the coming weeks.

 

With the Massachusetts loss facing them, Senate leaders appeared to back-pedal Tuesday from a pre-Christmas agreement that anticipated a rapid-fire set of roll calls beginning Wednesday on a debt ceiling bill and accompanying amendments. Instead, Democrats signaled that key votes could be postponed until next week, as the administration tries to get a final sign-off from two of the major players, Speaker Nancy Pelosi (D—Cal) and Senate Budget Committee Chairman Kent Conrad (D—N.D.)

DrKrbyLuv's picture
DrKrbyLuv
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Re: The Lunacy Continues 1.9/14.3 Trillion

Our debt is growing exponentially, as detailed in CM's Crash Course.  There aren't many ways to stave off the inevitable - debt default.  

The government is acting as the "borrower of last resort" in a futile attempt to:

  1. Off-set the lack of private borrowing - there just aren't enough willing and worthy borrowers
  2. The debt must perpetually grow - if not the government; then who?

The "who" will be our 401-ks, IRA's, pensions, entitlements, etc.; for as long as that lasts. 

The Bank of England (Crown) has been doing this for over 300 years.  When they monetize our private and public debt, for free, they gain interest profit, for free, or; they take the collateral, for free.  Why do we choose to borrow when we create the same money for free and without any debt?

Larry

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Re: The Lunacy Continues 1.9/14.3 Trillion

My, oh my. 

I wish I had some witty comment, or insightful bit of wisdom, but this snippet just speaks for itself...
We should all be grateful that we've got the opportunity to prepare before this catches up to us.

Cheers,

Aaron 

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Re: The Lunacy Continues 1.9/14.3 Trillion

My wife and I were talking tonight, I told her that our politicians' solutions are our problems and we'd be better off with anarchy.

She told me I was nuts.

Maybe.

My counter was you don't need an earthquake to wind up like Haiti. Our politicians, in my opinion, are creating our Haiti. The default will be a 10 on the Richter scale. The disruption of food and service will likely be the same. We've all seen the pictures from Detroit with respect to crumbling homes.

Joy. 

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Re: The Lunacy Continues 1.9/14.3 Trillion

Ok, even though we all know here that they will just continually raise the borrowing limit over and over until default, but humor me here.....

What could possibly happen if they actually didnt increase the borrowing limit? We just continue getting lied to? They arent going to just stop borrowing, maybe just stop reporting, lol.....

Is there anything in place for the limit not being raised (this may be another reason it just keeps getting raised....they dont know of ANY other way to handle the situation, even though we could all do a better job at this point)

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AlexzanderL (not verified)
Re: The Lunacy Continues 1.9/14.3 Trillion

We are now facing year 2010 in which another challenges will come. Minimizing the unemployment rate is what I am expecting to be fix. It is important because unemployment is the root of crisis we have right now. If it happens that federal government shall overlook this, I guess, we cannot even move on. And speaking of moving, I cannot even imaging moving to the Caribbean – as if the Haiti earthquake wasn't bad enough, the Cayman Islands earthquake happens right afterward.  Not like I could afford real estate there anyway, but I'm definitely not going to if I ever could.  Granted, the Cayman Islands are evidently far better equipped to deal with natural disasters and Haiti has been given the short end of the stick, to say the least, for the bulk of its history.  I hope those poor people can get the help they need, and it's going to take more than a couple of payday loans worth to help fix that poor country.

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Re: The Lunacy Continues 1.9/14.3 Trillion

Just make it 15 trillion so we don'[t have to talk about it until after teh fall elections.....

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Re: The Lunacy Continues 1.9/14.3 Trillion
that1guy wrote:

What could possibly happen if they actually didnt increase the borrowing limit? 

IMO: They'd take the government down to a skeleton crew. Get rid of the need for an average Joe or Jane to work from Jan. 1- Sep. 1 just to pay taxes and fees to support the existing insanity. The wars would end. The insolvent banks would collapse. The lunacy of importing food thousands of miles would stop. Business would shift to local. And if they were smart (which they are not) they'd seed solar, wind, geothermal technology with a Manhattan project with folks like CM. 

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Re: The Lunacy Continues 1.9/14.3 Trillion

It should be clear at this point to even the most die hard keynesian that the plan is to devalue the dollar to pay off the debt in whole or in part. No one, and I mean no one at this point can really believe that what they are doing is constructive and prudent.

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that1guy
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Re: The Lunacy Continues 1.9/14.3 Trillion

can i get an AMEN......in no way does anything they are doing make sense. I guess my EXTREME distrust of the government (like many of us here) makes me think that even if they dont raise the borrowing limit, they will just figure out a way to hide it anyway....

I agree DAVOS, I would hope that is exactly what happens, lord knows I (along with most others here)have been prepairing to ride out just that and more, but we both know that actions like that make sense and are logical.

There is no such thing as logic within the government. If it makes sense, the government sure as hell wont do it. The worst part is that it is this way on ALL levels of government (from the lowest military rank, to Obama himself)...

 

GO TEAM,

Mike

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isjrb029
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Re: The Lunacy Continues 1.9/14.3 Trillion

I think that the government will just fudge the numbers to say what they want. See we gave you jobs, jobs, jobs. They make the numbers up just like Chris has pointed out time and again. The sad part is that many people belive them.

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Re: The Lunacy Continues 1.9/14.3 Trillion

Fudging the numbers = Easy
Solving the problem = Impossible
"Manhattan Project" for alternative Energy = Brilliant.

I can say with some certainty that the .gov will elect to ignore anything that's not "easy" ;)

Cheers,

Aaron

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earthwise
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Re: The Lunacy Continues 1.9/14.3 Trillion

 Davos shares this with us:

My wife and I were talking tonight, I told her that our politicians' solutions are our problems and we'd be better off with anarchy.

She told me I was nuts.

A worthwhile observation of anarchy here:

http://www.sobran.com/reluctant.shtml

 

DrKrbyLuv's picture
DrKrbyLuv
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Re: The Lunacy Continues 1.9/14.3 Trillion

Any civilization that fancies itself progressive, should strive to reduce the amount of government intrusion and intervention as an ongoing ambition.  As civilization advances, there should be less need for government until we reach the height of true anarchy (0 government).  Our government is too big to succeed, at least from the people's perspective.

On top of a bloating bureaucracy, our government has the added parasitic load of a private banking cartel that issues money as debt.  Any hope for a financially responsible government went out the door many years ago.  If for example, the government decided to stop deficit spending, our money supply would quickly contract into a depression that would make the 1930's look like the roaring twenties.

We must forever go deeper into debt - it's inherent with our money system.  Our only hope is for true monetary reform that must include the nation taking back it's sovereign power to issue and control it's own money.

Larry

 

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