u.s. debt limit

franklin1950: on august 2 . the most recent do or die crisis.

Leon35: There is no crisis ! Do you really believe that the government will not fuction after that date ? They have more money then they can spend, and it is ours' money they throw around. It is all a threat, that only the weak at heart and mind believes.

They should not raise the debt limit, raise taxes, drill for oil here, deregulate businesses, and pass the ballance budget amendment. By doing all this at once our country will recover.

davidk14: .

Even before one can consider raising the debt ceiling by another 1 – 3 trillion dollars, the following needs to be realized:

The US receives in tax collects approximately $200 billion a month.

The US pays out approximately $320 billion a month.

The US deficit per month is approximately $120 billion a month.

To balance the monthly budget, one would have to cut spending by approximately 33%. Even if taxes are raised, the budget still would have to be cut by approximately 25 - 30%.

No good answers here and the belt tightening is going to be ugly. I believe that the ceiling will be raised however major cuts in government spending must also occur, first to balance the annual budget, then to pay off the 14.3 trillion we already owe.


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franklin1950: i can only go on what i hear on the news and commentary talking heads [ fox and msnbc ] and political speaches .
do some polititions place more value on party agenda and personal re-election than on the wellfair of the country. ??
class warfare . dire consecquences . doom if not resolved by august 2 .

it is difficult to not be sarcastic synical obsurd when commenting about politics and polititions .

here when the government is asked to cut their speding they threaten to cut funds for firemen , police , hospitals schools etc .

not long ago one of your polititions said that the social security funds were good for another 40 years . ??

davidk14: .

Franklin said:

“…not long ago one of your politicians said that the social security funds were good for another 40 years . ??

David responds:

The system's break-even date -- when Social Security will begin paying out more in benefits than it takes in through payroll taxes -- has been moved forward by one year, to 2016, in the most recent Social Security trustees report. What's more, the still-sputtering economy might bump that date forward. The system will make up the shortfall by dipping into its $2.4 trillion trust fund. (The fund, however, is held in government bonds, not cash. Redeeming the securities might require federal tax increases or spending cuts.)

Source:
articles.moneycentral.m**.com/
RetirementandWills/CreateaPlan/
how-long-can-social-security-last.aspx


The trust fund has been raided for years so technically it is broke (which means, if you had $100 in the safe and you borrowed the $100 replacing the money with paper IOU’s).

The date that Social Security goes into debt spending is 2016. Your comment, “…not long ago one of your politicians said that the social security funds were good for another 40 years?” is inaccurate at best.

David continues:

I refer back to my post once again. It doesn’t matter what the political view is. The math can no longer be twisted politically. Taxation will never solve the issue. Spending must be cut and dramatically. As stated before in my last post, each month, the US deficit spending is approximately $120 billion…per month. A balanced budget amendment must be the focus. Do not spend more than you take in.

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Leon35: Regardless of what Obama and the Democrats say, the world will not stop spinning and the sun will come up in the morning of August 2nd. It is all playing on fear, which is the favorte game of that political party. They need to do the job they were elected to do. I am glad they are showing thier true colors so they can be voted out !

franklin1950: the statement was made by the senate magority leader .

would be nice to see the government ballance a budget , live within their means .

davidk14: .

I believe it was Pelosi who said that last year who no longer is the House Majority Leader. She has also said referring to the Helath Care Bill, "But we have to pass the bill so you can find out what is in it"

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Leon35: David, you bring out a good point, in that in order to know what a bill consists of, it has to be pass into law. That is BS. For me to know what is in the bill, all I have to do is read it. And, to read it all I have to do is go to the Library of Congress website.

Obama speaks in gerenal terms because he does not have a plan for jobs, the ecomony, spending, or anything else. He has never dealt with any of these things in his personal life. What job he ever had ? Yes he was a lawyer but what case he ever had ? He was a community organizier, yes but what he did ? The man has nothing to show but that he is a great campaigner !!

franklin1950: i heard laehy [sp?] majority leader of the senate . pelosy may have said it too .

the readable bill in queation would not have been in the library as it had not yet beem passed .
pelosis pas it then read it quote is a classic.

the president this week said 80% of americans are in favor of increesing revenues [ tax increase ]

Leon35: Franklin, once a bill is introduce in the house or senate it is given a number and place in the LoC website. Check it out for yourself, don't take my word for it.

Remember what Joe Wilson said, "He lies". Ask anyone of your friends if they want more taxes or spending. Do you ?

davidk14: .
Franklin said: i heard laehy [sp?] majority leader of the senate . pelosy may have said it too .

David responds: Senator Leahy is an ultra progressive democrat from Vermont and has never been the Majority Leader of the Senate.


Franklin said: “…the president this week said 80% of americans are in favor of increesing revenues [ tax increase ].”

David responds: Unfortunately, once again the President has been mis-informed or he is intentionally not conveying factual information. Gallop’s latest poll regarding increasing taxes…

July 7 – 10th people surveyed regarding reducing the deficit…

Only / Mostly with spending cuts 50%

Only / mostly with tax increases 11%

Only 4% polled are in favor of only increasing taxes.



Results for this Gallup poll are based on telephone interviews conducted July 7-10, 2011, with a random sample of 1,016 adults, aged 18 and older, living in all 50 U.S. states and the District of Columbia.

Source:

gallup.com/poll/148472/
Deficit-Americans-Prefer-Spending-Cuts-
Open-Tax-Hikes.aspx

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franklin1950: i stand corrected.
the president has said that all americans have to have skin in the game and share in the burden.
what percentage of the population pay what percentage of the tax burden ?

as ive previously stated it is difficult not being synical sarcastic when discussing politics and polititions.

it makes me feel good giving to a charity even when i know only 10 cents of every dollar actually makes it to the needy.
i am proud of my governments social programs even though i know it takes 5 dollars for each dollar that makes it to the needy.
i know the government knows what is in the best intrest of myself and country because they have told me so.

i've been told that if i am unsatisfied with my government i can always vote them out even though they all seem to be interchangable parts of the system.

i

franklin1950: david , are you implying that the president would speak an untruth a lie to influence the flock to achieve a political end ? has he ever done before [ lie ] ? its not something reported by the 5th estate. [msnbc ]

whatever his name the remark by the senate majority leader . no matter .

stephinrazin: The price of gold tells it all. The dollar will fall. Not on August 2nd though. This should be a warning sign to prepare for a decline in your standard of living, and a time without many social services.

davidk14:

davidk14: .

Step,
The decline has been noticeable for a number of months already. The price of Starbuck’s 1# bag of coffee went up 17% this week. That’s a huge increase. Price of meat has sky rocketed recently as well. Gas prices have fallen to reasonable levels for a month or so now and that’s a good thing.

As time moves along, Social Services will still be available but I believe at a 10-15% decrease. The US must start reducing debt now because if we wait too long to deal with this issue, we will end up like many of the EU countries like Greece.

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stephinrazin: Really? I left the country. I am living abroad. I noticed it over the past year and a half. 17% in a week? That is heading towards hyperinflation.

I hope you are right that services will only decrease for a time. I just have no faith in the political class do act before it is too late. This debt crisis will end up with a couple hundred billion in cuts, and they will still raise it. There is really no way to make any significant changes without cutting the empire back. That is not going to happen as long as the "republic" is controlled by an oligarchy of military/energy/banking corporations.

I do not believe I am being dramatic when I say people should prepare. No one wants to think that way, but it is part of reality. We can pretend everything will be ok, or that the US will somehow weather a huge economic collapse differently than any other state is history. The truth is economic mismanagement, and imperial over extension have happened before. It rarely ends well for the average joe. Believing that somehow this time will be different is the height of hubris in my mind.

davidk14: .

Step,

There are numberous food companies advertizing for 'emergency food storage" like wisefoodstorage.com on the radio lately selling 1 and 2 years dried food inventories for families including water treatment supplies. There are also companies selling seeds for growing your own food. Understand these items are seling like hotcakes.

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franklin1950: it seems like only a month or so age we had another count down to doomsday armageden end of the world.
suckin60s kept us updated .

the political/financial crisis doomsday senario scare tactics have worked quite well in the past and will probably succeed again.

increase the dept limit now [ a trillion dollars ? ] and they promice to cut 100 billion dollars in 10 years .
sounds like a fine deal . but is it posible that the dept ceiling could be raised several more times in 10 years ?

tim gikner [ sp? ] being the financial wizard/genious that he is .

senate majority leader read . i stand by the quote i heard .

davidk14: .

Franklin said:”…increase the debt limit now [ a trillion dollars ? ] and they promise to cut 100 billion dollars in 10 years…sounds like a fine deal…”

David responds: I hope you are being sarcastic.


Franklin said: “…but is it possible that the debt ceiling could be raised several more times in 10 years ?”

David responds: Not if a Balanced Budget Amendment is put in place as the House is trying to put together before August 2 as part of the debt deal. Unfortunately, the current administration has “said” that a Balanced Budget Amendment would be vetoed by the President.


Franklin said: “…Tim Geitner being the financial wizard/genius that he is .

David responds: Again I hope you are being sarcastic. He’s nowhere near a wizard or genius. He couldn't even do his own taxes correctly.


Franklin said: senate majority leader read . i stand by the quote i heard .

David responds: I apologize. I misunderstood. Yes, the majority leader of the “Senate” is Senator Harry Reid (D) from Nevada, a real douche bag liberal progressive politician and he will misrepresent the facts whenever possible just as the ex-House Majority Leader Pelosi (D) did.

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franklin1950: as i have said previously it is difficult [ if not near imposible ] not to be sarcastic/synical when discussing politics/polititions.
sarcasm is often difficult to convay in print and is often misinterpited by the reader.
what one person considers sarcasm, another may comprehend as fact.

my understanding is that a ballanced budget law would require a constitutional amendment and would take years .

davidk14: .

First the House votes, then the Senate, then the President signs it, then the 50 states need to vote on it. The vote can happen before the next presidential election in 18 months. Also, once the debt ceiling is raised on Aug 2nd, which it will be, the money, approximately $2.5 TRILLION will last for 2 years.

The Balanced Budget Amendment will make the politicians in Washington live within a budget...just like you and me. Anyone that would not vote for this amendment probably will not be re-elected.

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Leon35: David, they said that the balance budget amendment will be put aside for now. 'til the Cap, Cut, and Balance bill is pass, which Obama says he will veto. He has not seen it yet but, he will veto it without he having his own plan. If he vetos either bills he is done. He is the one holding the ecomony from improving and it will cost him.

I think the Budget Amendment will pass both houses and the states will approve it in less then a year.

davidk14: .

Today the House passed the Cut / Cap / Balance Bill by a 234 to 190 vote. It now goes to the Senate. It will be voted on in the Senate if the Senate Majority Leader Reid (D) "allows" the bill to be voted on.

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Leon35: Yes David, the house passed HR 2560, the Cut, Cap, Balance Act of 2011. You can read the text of the bill in the LoC website. They say it will not pass the Senate and Obama will veto it if it does. Can't wait for it to pass the Senate and it will, I hope. This is calling OBama's bluff. Good for the House of Representatives, our government it working !