Treasury Dept. Moves to Avoid Debt Limit

[Uturn2001]

WASHINGTON - Treasury Secretary
John Snow notified Congress on Monday that the administration has now taken "all prudent and legal actions," including tapping certain government retirement funds, to keep from hitting the $8.2 trillion national debt limit.

In a letter to Congress, Snow urged lawmakers to pass a new debt ceiling immediately to avoid the nation's first-ever default on its obligations.

"I know that you share the president's and my commitment to maintaining the full faith and credit of the U.S. government," Snow said in his letter to leaders in the House and Senate.

Treasury officials, briefing congressional aides last week, said that the government will run out of maneuvering room to keep from exceeding the current limit sometime during the week of March 20.

Full Story (http://news.yahoo.com/s/ap/20060306/ap_on_go_ca_st_pe/federal_debt_5)

Did anyone realize that the US was this far into debt?

[Coalregion]

If China ever decides to foreclose on the money that our Govt. currently owes them, we will be in a world of hurt....And we keep digging the hole deeper and deeper each passing day :wtf:

[Uturn2001]

As much as some would like to make this a democrat or republican issue it is not. It is a goverment issue. Politicians like to spend, spend, spend.

If the average person on the street spent money like the goverment does they would be thrown in jail for a very long time.

[Flying Dutchman]

One of the most frustrating things is how the politicians want to deal with this problem. Instead of trying to control wasteful spending, they are more apt to seek tax increases.

To make a bad analogy, visualize a bathtub that is overflowing. The first thing to do is turn off the spigot. Then pull the drain plug before trying to 'bail out' any of the water with a bucket. What Congress does is tantamount to using a Dixie cup to bail out the tub while the water is running full blast!
:wtf:

It's the spending, stupid!

[Big_Dave]

To make a bad analogy, visualize a bathtub that is overflowing. The first thing to do is turn off the spigot. Then pull the drain plug before trying to 'bail out' any of the water with a bucket. What Congress does is tantamount to using a Dixie cup to bail out the tub while the water is running full blast!
:wtf:

It's the spending, stupid!


A 'dixie cup' to bail out the tub?!?!?!? :wtf:

Try comparing the dixie cup to bailing out the Titanic. :yikes: :yikes: :yikes:

[Lars]

Analogies, like so many other things, should be used sparingly by amateurs, as we again can see above. The current fiscal situation was evident already in 1999, as GWB was campaigning for the presidency and many of the current complainers were cheering it on as those flawed policies were implemented.

There are few ventures more expensive than wars and at some point you have to pay for them and doing so by borrowing is probably the worst method. Of course, implementing a new entitlement to enrich the pharmaceutical industry at the same time does not improve the fiscal situation.

The level of spending, or the level of obtained revenues have little impact on the economy, as long as they are balanced. What matters regarding the spending is that it confers value to the economy, but you have to raise the means in a manner that is not at the same time injurious to that economy.

This administration, and it is a decidedly Republican one, has failed on all fronts on this issue and also on many other ones, all adding to the cost that will be passed to ensuing generations.

When D. D. Eisenhower made his farewell speech, he mentioned more than the famous warning about the "military-industrial complex" and I find this passage to be very relevant today, as it was in the early 50's:

Another factor in maintaining balance involves the element of time. As we peer into society's future, we -- you and I, and our government -- must avoid the impulse to live only for today, plundering, for our own ease and convenience, the precious resources of tomorrow. We cannot mortgage the material assets of our grandchildren without risking the loss also of their political and spiritual heritage. We want democracy to survive for all generations to come, not to become the insolvent phantom of tomorrow.

There was a time when Republicans were both intelligent and principled, but they have decended rather far from that at this time in history and there are basically no excuses left to justify the current situation and this was known half a century ago by the last Republican president to have known true adversity.

Now it is really a matter for those who have aided and abetted these dismal actions against the nation to show enough character to first admit their mistakes, but more importantly, to try to facilitate the necessary changes to rectify the situation and set the country on the right path to future peace and prosperity.

[Uturn2001]

Anyone know any career polictician that truly cares about tomorrow. If they do it is only because it is an election year. :wacko: :wacko: :wacko:

[Big_Dave]

Analogies, like so many other things, should be used sparingly by amateurs, as we again can see above. The current fiscal situation was evident already in 1999, as GWB was campaigning for the presidency and many of the current complainers were cheering it on as those flawed policies were implemented.
Lars, I'm not 'cheering' anyone. I was implying that the way this country is borrowing $$ is very easily compared to bailing out the Titanic with a Dixie cup.........a dang near impossible task of saving it. :angry:

For example, even if the Gov't suddenly passed a law to stop giving tax refunds back to us (that'll never happen), it'd STILL take many years to get us (the country), back to the point where we could even begin to see 'above water'.

Good to see you back Lars. :cool: :cheers:

[Lars]

While the ignorants refuse to acknowledge it, during the Clinton administration a large fiscal deficit was turned into a budget surplus. So there are fairly recent examples of the required discipline to correct such problems.

What is also required is political leadership and prudent fiscal policies and that has been largely abscent during the last 5 years, when three trillion dollars were added to the national debt.

I still find the analogy inadequate, since it would be like comparing apples to - let's say - lemons. It is more like a sisphysian endevour and the only solution is to blow up the rock and retire the pusher.

As far as me being back, I guess that will again only last until one of your moderators ( always the same one) again find fault with my posting.

[Flying Dutchman]

While the ignorants refuse to acknowledge it, during the Clinton administration a large fiscal deficit was turned into a budget surplus. So there are fairly recent examples of the required discipline to correct such problems.


What policy was it of Bill Clinton's that caused revenues to increase? Was he actually responsible for it - or was it the GOP members in Congress (doubtful, but possible) who helped with it? Whatever the era, it takes two to tango......and both the legislative and executive branches should take the credit or the blame.

If memory serves me correctly, Bill Clinton actually shut down the government (and successfully blamed it on Gingrich's crew) by refusing to sign the spending legislation that came about in '95 or '96. Clinton actually wanted to spend more money at that time. Reagan did the same thing during the '80s because he wanted to spend less.

Spending was still not brought under control, though; even though there were some good years as far as the US Treasury was concerned. Something similar happened during the '80s under Reagan. Revenues increased dramatically because of increased economic activity (even with a tax-rate cut) and, of course, the government still spent all of it -- and much, much more.

And, of course, the "surplus" years were still a drop in the bucket when compared to the whole picture with the national debt. You can still have one or two good months inside of a terrible year.
:angry:



What is also required is political leadership and prudent fiscal policies and that has been largely abscent during the last 5 years, when three trillion dollars were added to the national debt.


We have had a serious lack of prudent fiscal policies for a lot longer than five years, sir.


I still find the analogy inadequate, since it would be like comparing apples to - let's say - lemons. It is more like a sisphysian endevour and the only solution is to blow up the rock and retire the pusher.


That is certainly right on target!


As far as me being back, I guess that will again only last until one of your moderators ( always the same one) again find fault with my posting.


Well, we will at least get to enjoy you until that happens.

Flying Dutchman; knows government will still grow in size,scope and cost - no matter which party controls the purse strings

[Lars]

The administrations propose budgets and Congress passes them, if they agree. What created the discipline during the Clinton years were the budgets proposed, and the agreement that any new spending had to be offset by reductions elsewhere or increased taxes and both happened.

On the tax side, energy taxes, mainly gasoline, were raised as were the top rate on the highest paid folks and that eventually ended in a budget surplus that has since been squandered.

It still comes down to what the people get in return for their taxes and a large chunk is lost in the sands of Iraq and an even larger chunk is lost in corporate welfare, not to mention in increasing interest payment to foreign debtors.

Still, all this was largely predictable, but few will admit to the aiding and abetting and that is a clear indication of the lack of character among those who now share the responsibility for the current situation.

I knew a long time ago that none of it added up and the question is why did not everybody?