About that debt limit.

[SemiAuto]

Treasury Secretary Timothy F. Geithner said he will take “extraordinary measures” to postpone a U.S. default for about two months while President Barack Obama and Congress work out a deficit-reduction deal.

Geithner, in a letter to congressional leaders today, said the government will hit its statutory debt ceiling on Dec. 31. To avert a default, the Treasury will take action to create about $200 billion in headroom under the debt limit.

source


Quote of the day:

“At this point, all they’re looking for is a fig leaf,” said Stan Collender, a former staff member of the House Ways and Means Committee and the House and Senate Budget committees who is now at Qorvis Communications in Washington. “There’s no grand bargain. There never was.”

[flyboy56]

"Until a higher debt ceiling is approved as part of a deficit reduction deal or separately, Geithner said the Treasury actions would include halting sales of certain securities and stopping new debt issues." Geithner

Bernanke's last press meeting also showed an urgency to get the fiscal policy in order because he has pretty much run out of options other than to just keep pumping money into the economy via printing.

[Joy in Mudville]

"Until a higher debt ceiling is approved as part of a deficit reduction deal or separately, Geithner said the Treasury actions would include halting sales of certain securities and stopping new debt issues." Geithner

Bernanke's last press meeting also showed an urgency to get the fiscal policy in order because he has pretty much run out of options other than to just keep pumping money into the economy via printing.

The Federal Reserve doesn't print money. It never has.

[flyboy56]

The Federal Reserve doesn't print money. It never has.

The Treasury does. Really doesn't change Bernanke's concerns.

[SemiAuto]

The Federal Reserve doesn't print money. It never has.

Then what are those Federal Reserve Notes I'm carrying around?

[flyboy56]

Then what are those Federal Reserve Notes I'm carrying around?

Joy is just being anal.

[Joy in Mudville]

Joy is just being anal.

No, I am being accurate.

If you are referring to QE III, the Fed is buying about $40 billion a month in mortgage backed securities. In 08,09 and 10 the Fed did substantially up it's holdings in short term Treasury bills as part of an effort to keep interest rates down.

It's also worth noting that the Fed turned a $70 billion profit in 2011 which was given to the federal government.

Now, you might argue that trying to engineer lower interest rates or helping the U.S. borrow money on the cheap is a bad thing but they're not printing money.

[SemiAuto]

No, I am being accurate.

If you are referring to QE III, the Fed is buying about $40 billion a month in mortgage backed securities. In 08,09 and 10 the Fed did substantially up it's holdings in short term Treasury bills as part of an effort to keep interest rates down.

It's also worth noting that the Fed turned a $70 billion profit in 2011 which was given to the federal government.

Now, you might argue that trying to engineer lower interest rates or helping the U.S. borrow money on the cheap is a bad thing but they're not printing money.

Then where is the fed getting $40 billion a month to buy mortgage back securities? Where did the $600 billion for QE2 come from? Or, for that matter, the money used for any of the quantitative easings?

It is debt monetization which is printing money.

[flyboy56]

Then where is the fed getting $40 billion a month to buy mortgage back securities? Where did the $600 billion for QE2 come from? Or, for that matter, the money used for any of the quantitative easings?

It is debt monetization which is printing money.

So do you think it's better to print money or borrow from China or Japan?

[SemiAuto]

So do you think it's better to print money or borrow from China or Japan?

Neither.

Here is a truly insane idea. Balance the budget. Crazy, I know.

[flyboy56]

Neither.

Here is a truly insane idea. Balance the budget. Crazy, I know.

But that would mean someone or something would have to go without and that would just be un-American of you SemiAuto!

[BiggSeth]

Let's hit the fiscal cliff, debt ceiling and any other catch phrase the MSM can come up with.

When that happens the law states that the EXECUTIVE BRANCH (obama regime) has to pay the interest on the debt, the military, and anything that has a dedicated revenue stream (social security)

all discretionary spending would then be prioritized and the remaining (non-borrowed) income to the gov't would be allocated to the varoius programs, etc as prioritized. this means no more discretionary spending from borrowing. In other words obama would actually have to make tough choices and live with the consequences of those choices.

No more of the pelosi marching out in front of the microphone and declaring that "Republicans want to make old people kill and eat retarded children." and the other nonsense. obama as the executive would have to make and own the decisions and the fallout from them.

when he and reid and the rest of the demogauge crew march out and start in on their usual meme, one could remind them that the reid-controlled Senate has not passed a budget under the reign of obama....

let's hit the ceiling and make obama live with the consequences of his political games.

[SemiAuto]

Let's not pretend that the GOP is not playing games here too.

[BiggSeth]

Let's not pretend that the GOP is not playing games here too.

the Constitution/statutes require that the Executive branch (obama) decide how what little extra revenue from tax reciepts that the Fed. Gov't takes in (not borrowed) is doled out. He would be making the decisions on priorities and the subsequent outlay of said non-borrowed revenue.

Had Romney won, I'd be saying the same thing......

[SemiAuto]

the Constitution/statutes require that the Executive branch (obama) decide how what little extra revenue from tax reciepts that the Fed. Gov't takes in (not borrowed) is doled out. He would be making the decisions on priorities and the subsequent outlay of said non-borrowed revenue.

Had Romney won, I'd be saying the same thing......

Fair enough.

[BlandFood]

Geitner? Isn't he one of the baboons cheats?

[overtaxed]

the Constitution/statutes require that the Executive branch (obama) decide how what little extra revenue from tax reciepts that the Fed. Gov't takes in (not borrowed) is doled out. He would be making the decisions on priorities and the subsequent outlay of said non-borrowed revenue.

Had Romney won, I'd be saying the same thing......

So, for the first time he is actually going to have to do his job. That could be tough.

[hst2]

source


Quote of the day:

Does Congress even meet anymore?

[Joy in Mudville]

the Constitution/statutes require that the Executive branch (obama) decide how what little extra revenue from tax reciepts that the Fed. Gov't takes in (not borrowed) is doled out. He would be making the decisions on priorities and the subsequent outlay of said non-borrowed revenue.

Had Romney won, I'd be saying the same thing......

Spending bills are supposed to originate in the house. They are called appropriations and authorization bills.

Obama has done his job. He submitted a detailed budget proposal to congress back in february. Right now, the Republicans are screaming for cuts but they never right down to specifying what these cuts should be.

It is also worth noting that the Ryan so-called budget would have required Congress to raise the debt ceiling. So, as SemiAuto said, let's not pretend that the Republicans are the bastion of fiscal responsibility. Quite the opposite based on their actions over the past two years.

[Joy in Mudville]

So do you think it's better to print money or borrow from China or Japan?

How much of our debt is owned by China? How much is owned by the american people?