“zero chance” Congress will allow the country to default on its debts

Aug 21, 17 15:15

Post #1 of 23 (1585 views)

Spend it like we got it? I think every good American should max out his/her credit and then apply for more. It's practically Um-American not too:

"McConnell’s comments came Monday during a joint appearance in his home state of Kentucky with U.S. Treasury Secretary Steven Mnuchin. It was one of McConnell’s first public appearances since President Donald Trump publicly criticized him for failing to pass a repeal and replacement of former President Barack Obama’s health care law.

McConnell did not mention Trump in his remarks, and he did not take questions from reporters after the event. But in response to a question about where he gets his news, McConnell said he reads a variety of sources, including The New York Times."

I have to toss this in this comment by one of the readers/responders of the article because I feel his frustration:
"Republicans aren't even RINOs anymore.
They are pure Turncoats. They are Democrats. They a worse then Democrats... These idiots actually spend more than Democrats!"

http://www.breitbart.com/...e-freeze-debt-limit/

"The great pleasure in life is doing what people say you cannot do."

Re: “zero chance” Congress will allow the country to default on its debts [jkca1] [ In reply to ]

Aug 21, 17 15:58

Post #2 of 23 (1560 views)

Quote:

These idiots actually spend more than Democrats!

This has been spelled out here for a long time. The GOP merely has different spending priorities than the Dems, and a much stronger opposition to funding them. The GOP is primarily a tax-cut party, which is useless in these debt-ceiling debates.

Last edited by: oldandslow: Aug 21, 17 16:26

Re: “zero chance” Congress will allow the country to default on its debts [jkca1] [ In reply to ]

Aug 21, 17 16:03

Post #3 of 23 (1552 views)

Of course the debt limit should be increased. The purpose of doing so is to allow the United States to meet obligations that it has already incurred. If you want the government to spend less money, that battle should be fought, and traditionally has been fought, in the process of making the budget. This only changed as extremist and ignorant Republicans took control of the Republican Party and Congress, and in 2011 decided to fight over the debt limit, resulting in a downgrade of the US Government's credit rating for the first time in history. You want to argue over which bills to incur, and how many, that's fine - but paying the bills that are due is nonnegotiable.

Re: “zero chance” Congress will allow the country to default on its debts [cholla] [ In reply to ]

Aug 21, 17 18:45

Post #4 of 23 (1487 views)

We are so fucked, film at 11:

"The surest way to avoid default is to prevent budget deficits that lead to debt. The Federal government must raise revenue through taxes or cut spending.
However, now that the debt is nearly 100% of GDP, it will be difficult to cut spending enough to reduce the debt and risk of default."

https://www.thebalance.com/...debt-default-3306295

"The great pleasure in life is doing what people say you cannot do."

Re: “zero chance” Congress will allow the country to default on its debts [jkca1] [ In reply to ]

Aug 21, 17 19:11

Post #5 of 23 (1465 views)

jkca1 wrote:

We are so fucked, film at 11:

"The surest way to avoid default is to prevent budget deficits that lead to debt. The Federal government must raise revenue through taxes or cut spending.
However, now that the debt is nearly 100% of GDP, it will be difficult to cut spending enough to reduce the debt and risk of default."

https://www.thebalance.com/...debt-default-3306295

How can we default when we can literally print money?
We'd only default if we want to be stupid. If we want to have a fight about spending priorities, I say let's do it. No one is going to be on the side of limiting our terrible spending priorities than me. However, I've written several times here how the debt is a bad focus. "Debt fighting" Dems always show up with higher taxes, and that just pisses me off.

Re: “zero chance” Congress will allow the country to default on its debts [SH] [ In reply to ]

Aug 21, 17 20:32

Post #6 of 23 (1432 views)

SH wrote:

jkca1 wrote:

We are so fucked, film at 11:

"The surest way to avoid default is to prevent budget deficits that lead to debt. The Federal government must raise revenue through taxes or cut spending.
However, now that the debt is nearly 100% of GDP, it will be difficult to cut spending enough to reduce the debt and risk of default."

https://www.thebalance.com/...debt-default-3306295

How can we default when we can literally print money?
We'd only default if we want to be stupid.

Correct

Re: “zero chance” Congress will allow the country to default on its debts [jkca1] [ In reply to ]

Aug 21, 17 20:53

Post #7 of 23 (1421 views)

Man, you're in full talk radio mode today.

Re: “zero chance” Congress will allow the country to default on its debts [trail] [ In reply to ]

Aug 22, 17 7:36

Post #8 of 23 (1320 views)

trail wrote:

Man, you're in full talk radio mode today.

Yes. I'm thinking of taking on advertisers to put my kids thorough college.

"The great pleasure in life is doing what people say you cannot do."

Re: “zero chance” Congress will allow the country to default on its debts [jkca1] [ In reply to ]

Aug 22, 17 7:49

Post #9 of 23 (1309 views)

U.S. National Debt Clock : Real Time

Good luck America.

A false humanity is used to impose its opposite, by people whose cruelty is equalled only by their arrogance

Re: “zero chance” Congress will allow the country to default on its debts [jkca1] [ In reply to ]

Aug 22, 17 7:59

Post #10 of 23 (1303 views)

We actually need three things. A balanced budget, modest inflation, and a strong which will trend to a non-recessionary economy. If we didn't run a deficit for 5 (10 would be better) years or so our debt and interest service payments would go down enough to allow for an expansion of government spending to close to current levels without incurring debt. We need the strong economy to take the hit of the reduced spending while not forcing us into a place to do emergency spending. The inflation will reduce the debt service payments in real terms while increasing revenue as well. The politicians don't have the stones to do it.

Re: “zero chance” Congress will allow the country to default on its debts [windywave] [ In reply to ]

blueraider_mike

Aug 22, 17 10:35

Post #11 of 23 (1264 views)

windywave wrote:

We actually need three things. A balanced budget, modest inflation, and a strong which will trend to a non-recessionary economy. If we didn't run a deficit for 5 (10 would be better) years or so our debt and interest service payments would go down enough to allow for an expansion of government spending to close to current levels without incurring debt. We need the strong economy to take the hit of the reduced spending while not forcing us into a place to do emergency spending. The inflation will reduce the debt service payments in real terms while increasing revenue as well. The politicians don't have the stones to do it.

Agree with this...but I would settle for a budget that grows less than the economy...If we could get growth at 3% and run deficit each year at 2% we would shrink the debt to GDP. I think this is possible, a balance budget is impossible, too many like free stuff.

Re: “zero chance” Congress will allow the country to default on its debts [blueraider_mike] [ In reply to ]

Aug 22, 17 10:43

Post #12 of 23 (1256 views)

blueraider_mike wrote:

windywave wrote:

We actually need three things. A balanced budget, modest inflation, and a strong which will trend to a non-recessionary economy. If we didn't run a deficit for 5 (10 would be better) years or so our debt and interest service payments would go down enough to allow for an expansion of government spending to close to current levels without incurring debt. We need the strong economy to take the hit of the reduced spending while not forcing us into a place to do emergency spending. The inflation will reduce the debt service payments in real terms while increasing revenue as well. The politicians don't have the stones to do it.

Agree with this...but I would settle for a budget that grows less than the economy...If we could get growth at 3% and run deficit each year at 2% we would shrink the debt to GDP. I think this is possible, a balance budget is impossible, too many like free stuff.

Even if we agreed to "settle" I don't believe our congressmen would honor the deal. I am 100% convinced that congress solely exists today to rape and bankrupt the country. Otherwise how could you explain the deficit? The spending? It's madness and we're leaving our kids a giant mess to deal with. They will eventually blame us for letting the country fail and what's our comeback going to be? We were too busy watching Battle of the Network stars to give a damn? Both sides were crooks so we didn't have a choice? It's not this is happening in secret.

"The great pleasure in life is doing what people say you cannot do."

Re: “zero chance” Congress will allow the country to default on its debts [Chri55] [ In reply to ]

Aug 22, 17 10:43

Post #13 of 23 (1256 views)

Yes it's a big number and it's going up but like someone mentioned we print the money. If we want to print more and drive up inflation we can. Also a lot of that debt is owed to ourselves. So we're just screwing overselves if we didn't pay.

At some point a generation is going to get hit really hard, but it's not like we can't deal with it.

That said until we figure out a budget that actually deals with entitlements/military it's going to be hard to do that.

Re: “zero chance” Congress will allow the country to default on its debts [SH] [ In reply to ]

Aug 22, 17 11:09

Post #14 of 23 (1244 views)

Printing money is defaulting on the debt. You are not repaying a debt if you are paying with monopoly money.

They constantly try to escape from the darkness outside and within
Dreaming of systems so perfect that no one will need to be good T.S. Eliot

Re: “zero chance” Congress will allow the country to default on its debts [len] [ In reply to ]

Aug 22, 17 11:17

Post #15 of 23 (1233 views)

Printing money is defaulting on the debt. You are not repaying a debt if you are paying with monopoly money. //

Well after the Great Depression began and 100's of banks failed and most others were in serious trouble of failing, printing money(along with closing all the banks for a cooling off period and restocking all that newly printed cash) seems to have worked out pretty well. It was all about perception, along with some extra physical greenbacks to show people that things were not so dire.

Of course nowadays it is a bit different with all the world currencies and how they affect each other, but a slow devaluation of the dollar might not be a bad thing for us right now. Many think it would be a great idea after the run up it has had over the past years. Pros and cons to that of course, but since such a big run up perhaps we need a little correction for our manufacturing.

Re: “zero chance” Congress will allow the country to default on its debts [Chri55] [ In reply to ]

Aug 22, 17 11:19

Post #16 of 23 (1233 views)

Striking how debt per taxpayer is three times debt per citizen

They constantly try to escape from the darkness outside and within
Dreaming of systems so perfect that no one will need to be good T.S. Eliot

Re: “zero chance” Congress will allow the country to default on its debts [len] [ In reply to ]

Aug 22, 17 11:26

Post #17 of 23 (1224 views)

len wrote:

Printing money is defaulting on the debt. You are not repaying a debt if you are paying with monopoly money.

len... these are just clichés. Can you give me something to really argue over?

Re: “zero chance” Congress will allow the country to default on its debts [SH] [ In reply to ]

Aug 22, 17 11:41

Post #18 of 23 (1213 views)

Not right now it was a moment of weakness

They constantly try to escape from the darkness outside and within
Dreaming of systems so perfect that no one will need to be good T.S. Eliot

Re: “zero chance” Congress will allow the country to default on its debts [monty] [ In reply to ]

Aug 22, 17 12:20

Post #19 of 23 (1188 views)

It took a historically long time to recover from the great depression so not sure how well it worked out. I do agree that some inflation might be helpful . Inflation when people cannot get any return on their money would likely hurt a lot of people. Esp the elderly. Other than debt repudiation I don't see an easy way out of the problem of massive gov't debt. Whether it gets repudiated by devaluation of currency or some other method.

They constantly try to escape from the darkness outside and within
Dreaming of systems so perfect that no one will need to be good T.S. Eliot

Re: “zero chance” Congress will allow the country to default on its debts [len] [ In reply to ]

Aug 22, 17 12:22

Post #20 of 23 (1187 views)

len wrote:

Printing money is defaulting on the debt. You are not repaying a debt if you are paying with monopoly money.

From a technical perspective it is not default

Re: “zero chance” Congress will allow the country to default on its debts [len] [ In reply to ]

Aug 22, 17 12:23

Post #21 of 23 (1184 views)

len wrote:

It took a historically long time to recover from the great depression so not sure how well it worked out. I do agree that some inflation might be helpful . Inflation when people cannot get any return on their money would likely hurt a lot of people. Esp the elderly. Other than debt repudiation I don't see an easy way out of the problem of massive gov't debt. Whether it gets repudiated by devaluation of currency or some other method.

Owning assets offsets inflation

Re: “zero chance” Congress will allow the country to default on its debts [windywave] [ In reply to ]

Aug 22, 17 12:52

Post #22 of 23 (1176 views)

Owning assets that appreciate in value offsets inflation. I think people need to start using pink because my sarcasm detector isn't working very well these days

They constantly try to escape from the darkness outside and within
Dreaming of systems so perfect that no one will need to be good T.S. Eliot

Re: “zero chance” Congress will allow the country to default on its debts [len] [ In reply to ]

Aug 22, 17 13:20

Post #23 of 23 (1160 views)

len wrote:

Owning assets that appreciate in value offsets inflation. I think people need to start using pink because my sarcasm detector isn't working very well these days

That wasn't sarcasm.

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