Barry unnecessarily raises the debt ceiling yet again

[Delmar]

Just back in September of last year, Barry told us that raising the debt ceiling is no big deal, it does not increase our debt.  Why do they have to raise it again not even five months later?

"Now, this debt ceiling -- I just want to remind people in case you haven't been keeping up -- raising the debt ceiling, which has been done over a hundred times, does not increase our debt; it does not somehow promote profligacy.  All it does is it says you got to pay the bills that you've already racked up, Congress.  It's a basic function of making sure that the full faith and credit of the United States is preserved." - See more at: http://cnsnews.com/mrctv-blog/craig-bannister/obama-raising-debt-ceilingdoes-not-increase-our-debt-though-it-has-over#sthash.PuH1mUqK.dpuf

Barry Soetoro on September 18th, 2013.

They've done it again and they are going to keep on doing it until they are stopped by the people or the laws of economics.

Sat Feb 15, 2014, 06:40 PM
Star Member cal04 (37,965 posts)

President Obama Signs Debt Ceiling Measure Into Law


Source: ABC News

President Barack Obama on Saturday signed separate measures into law to lift the federal debt limit and restore benefits that had been cut for younger military retirees.

(snip)
The debt limit measure allows the government to borrow money to pay its bills, such as Social Security benefits and federal salaries. Failure to pass the measure, which the Senate passed 67-31 earlier this week and sent to Obama for his signature, most likely would have sent the stock market into a nosedive.

The Treasury Department is now free to borrow regularly through March 15, 2015, meaning lawmakers won't have to revisit the issue until a new Congress is sworn in after the November elections.

(snip)
Both bills were flown out to Obama in California late Friday night, a White House aide said.

Read more: http://abcnews.go.com/Politics/wireStory/obama-signs-debt-ceiling-measure-law-22535852
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http://www.democraticunderground.com/1014728928

I know now that raising the debt ceiling won't necessarily increase the debt--thanks Barry!  I wonder what will happen this time?

[Dori]

Neil Cavuto went on a long rant the other day over this and the trillion dollar farm bill.  The CBO also came out and said the debt is putting us at risk for a financial crisis.

This time next year the national debt will be about 18.2 trillion.

[I_B_Perky]

I've figured out that the US is on a downward spiral. The end result will be austerity of a magnitude that will end up cutting all the welfare off and the pavement apes rioting.

The libs whine about the military... well there is not enough to cut in the military that can pay for the free loaders.

Mark my words dummies and pavement apes... your free ride is coming to an end. The only question is when.

[thundley4]

The debt limit measure allows the government to borrow money to pay its bills, such as Social Security benefits and federal salaries. Failure to pass the measure, which the Senate passed 67-31 earlier this week and sent to Obama for his signature, most likely would have sent the stock market into a nosedive.

Not true. There is plenty of money to pay interest on the debt, Social Security, government salaries, (including military) just from the monthly intake of taxes.  However, borrowing is needed to keep spending money on new shit that isn't needed and to keep the money flowing for freebies.

[Dori]

.... borrowing is needed to keep spending money on new shit that isn't needed and to keep the money flowing for freebies.

The government collects about 3 trillion annually and has averaged spending about 4 trillion. Who knows what this Obamacare debacle is going to do to that. What we need more than anything is a better growth rate.

[98ZJUSMC]

I was wondering. 

If tax receipts are at an all time high and the *LIE ALERT* deficit has been cut *LIE ALERT*, why do we need the debt ceiling raised?  Are we simply borrowing more to pay off the interest on the ever increasing debt load......

Never mind.

Not true. There is plenty of money to pay interest on the debt, Social Security, government salaries, (including military) just from the monthly intake of taxes.  However, borrowing is needed to keep spending money on new shit that isn't needed and to keep the money flowing for freebies.

I love exploding their widdle heads over their false assumption that the Defense budget could pay for all their Utopian bullshit.  The conversation goes silent when you show them that SS liability alone dwarfs the Defense budget.

[98ZJUSMC]

The government collects about 3 trillion annually and has averaged spending about 4 trillion. Who knows what this Obamacare debacle is going to do to that. What we need more than anything is a better growth rate.

True, but I'm not sure the economy can grow fast enough and at a rate that would fix the debacle.  Spending has to be cut.  The ObingaJuntaCare fiasco just makes that worse and accelerates the process.

[JohnnyReb]

....and the democrats are off and running with a new increased debt limit on the national credit card....now how can we buy new votes[0bama and crowd]

[obumazombie]

Whatever owebuma says, I know the opposite is true. It's just like the George Costanza opposite episode of seinfield.

[Carl]

The government collects about 3 trillion annually and has averaged spending about 4 trillion. Who knows what this Obamacare debacle is going to do to that. What we need more than anything is a better growth rate.

That could very well be on its own the tipping point.
So far none of the "expectations" that leftists promised have come true.

Sadly all the expectations those of us who understand human nature and behavior have.
The economic impact may be devastating.

[Doc Savage]

Lets simplify this:

You have a visa card with a max limit that you have met.  You are only able to make the minimum payment every month because your income is not great enough to pay more.  But, you really really really want that new bobble.  You call visa and ask to raise your limit.  The nice person at the other end of the phone says Sure, no problem.  (your are already on a payment plan that will take you 450 months to pay off your card paying minimum, what is another 50 months or so).  Your get your bobble, and you are happy.  You are still making the miminum monthly payments to keep the bank happy, and your credit score goes down because your debt to income ratio is lower, but you got that bobble. 

All is well and good until you need that next bobble, or your income drops.  Whoops, can't pay something…….Who goes without?  Which bill is not paid, or do you try to get your credit limit increased again to pay the bills that you have incurred?  What would the fiscally proficient occupier do?

[Dori]

How does all the QE fit into the picture?

Are we printing money just to borrow it from ourselves?

[Big Dog]

I've figured out that the US is on a downward spiral. The end result will be austerity of a magnitude that will end up cutting all the welfare off and the pavement apes rioting.

The libs whine about the military... well there is not enough to cut in the military that can pay for the free loaders.

Mark my words dummies and pavement apes... your free ride is coming to an end. The only question is when.

It will come. This unnatural and unsustainable house of cards will fall. All debts come due and must be paid; human nature and mathematics can not be denied.

Some people recommend investing in gold. Some recommend silver, or diamonds.

I am putting my money into steel and lead.

"Survival of the fittest." It's not just a good idea- it's the law.

[JohnnyReb]

I am putting my money into steel and lead.

"Survival of the fittest." It's not just a good idea- it's the law.

Evolution baby, evolution...."Change we can all believe in".

The freeloaders will die of starvation or lead poisoning....they can take their pick.

[NHSparky]

How does all the QE fit into the picture?

Are we printing money just to borrow it from ourselves?

Basically, yeah.  And all those bonds come due, with interest.  Or, people are pumping that $85 billion a month into the market, where you have a case of more money chasing fewer stocks, with the inevitable inflation (or stocks rising by 20 percent a year) as a result.

Just look at what the markets do every time cutting off the teat is even discussed.  All the more reason to (IMO) start looking for a safe place to put your money for when the market corrects after QE ends, because it simply can't last forever.

[obumazombie]

I don't see how the FED can buy US debt. With what ? What do they have as assets to purchase the bonds and debt with ? Where do they get these trillions of dollars ?

In the meantime, another red line for owebuma...

[Wineslob]

"Now, this debt ceiling -- I just want to remind people in case you haven't been keeping up -- raising the debt ceiling, which has been done over a hundred times, does not increase our debt; it does not somehow promote profligacy.  All it does is it says you got to pay the bills that you've already racked up, Congress.  It's a basic function of making sure that the full faith and credit of the United States is preserved." - See more at: http://cnsnews.com/mrctv-...over#sthash.PuH1mUqK.dpuf
Barry Soetoro on September 18th, 2013.

Reminds me of the Blonde joke: " How can I be out of money when I still have checks?"


 

[Dori]

I don't see how the FED can buy US debt. With what ? What do they have as assets to purchase the bonds and debt with ? Where do they get these trillions of dollars ?

In the meantime, another red line for owebuma...

Good question.  I can't visualize the dr/cr transactions either. 

My guess is that the Feds print the money and give it to treasury in exchange for notes (bonds).  The treasury then deposits the money and pays the bills with it. 

The tricky part, is how do the Feds record the money printing?

[BlueStateSaint]

The tricky part, is how do the Feds record the money printing?

Observe:

 

[Gina]

I've figured out that the US is on a downward spiral. The end result will be austerity of a magnitude that will end up cutting all the welfare off and the pavement apes rioting.

The libs whine about the military... well there is not enough to cut in the military that can pay for the free loaders.

Mark my words dummies and pavement apes... your free ride is coming to an end. The only question is when.

This would be fun to watch their misery except for the fact that they will then start stealing from the actual people that have common sense to protect their family. 

[DLR Pyro]

The Treasury Department is now free to borrow regularly through March 15, 2015, meaning lawmakers won't have to revisit the issue until a new Congress is sworn in after the November elections.   How convenient for both parties.

(snip)
Both bills were flown out to Obama in California late Friday night, a White House aide said.  One reason we are so broke is stupid shit like this.  With all the secure comm equipment that follow the President around wherever he goes, they had to fly the bills out to him on a separate flight.  What the hell,  it's not like it's their money.

[txradioguy]

The tricky part, is how do the Feds record the money printing?

They don't.  It's all electronic now.  A handful of key strokes and the accounts go from having nothing...to completely full.

It's desensitized people to the cost of everything.

[txradioguy]

Why didn't he jsut sign them electronically on his BlackBerry?  They have CAC card readers for the Gov. phones that let you do that stuff.

Like you said waste and abuse.