Snow urges Congress to raise debt limit (almost in default!)

[NVMojo]

hu Dec 29, 5:54 PM ET

WASHINGTON (Reuters) - U.S. Treasury Secretary
John Snow warned lawmakers on Thursday that a legally set limit on the government's ability to borrow will be hit in mid-February and urged Congress to raise it quickly.

Failure to do so potentially risks throwing the country into its first default in history, Snow warned in what has become virtually an annual rite as U.S. borrowing needs spiral.

"The administration now projects that the statutory debt limit, currently $8.184 trillion, will be reached in mid-February 2006," Snow said in a letter to 21 members of the U.S. House of Representatives and Senate released by Treasury after financial markets had closed.

Snow said that Treasury, if the debt limit was not raised by then, would have to take "extraordinary actions" to keep paying its bills for everything from
Social Security to national defense spending.

more...

http://news.yahoo.com/s/nm/20051229/pl_nm/economy_debtlimit_dc

[Vincardog]

1. Yo conservatives GET IT?

[NVMojo]

7. True fucking story!!!

[HysteryDiagnosis]

2. When in America, do as the Romans did. Stooooopid. nt.

[NMDemDist2]

3. again? already? they just did that a few months ago

good grief

:banghead:

[high density]

4. I'm sure many Americans wish they could just arbitrarily lift their "debt

limit" as well!

[lumpy]

15. No kidding !

The credit card scam, scurge of Americans.

[bahrbearian]

5. Raygun proved Deficts don't matter,,, We've got a booming

war time economy,, we've added 2.5 million jobs since 9-11,, whats the problem here?

[RUMMYisFROSTED]

6. $30,000 per American. $50,000 per taxpayer.

:party:

[no_hypocrisy]

8. Gee, why don't they cancel the permanent tax cuts & keep the debt limit?

[brokensymmetry]

9. We're at 8 trillion now...

the latest trillion added in a mere year-and-a-half.

We're about to see some serious inflation; don't expect wages to keep up.

Thanks, *. Thanks a lot.

[Toucano]

10. "vitually and annual rite"??? Not quite.

Try "literally" and annual rite!

These bastards did this last year just after the election.

Will someone please tell my bank that I can't make the mortgage payment this month but I raised my debt ceiling so everything will be alright?

[Thor_MN]

11. * has borrowed more than the first 42 presidents combined

Why doesn't THAT get any airplay?

[Nomen Tuum]

12. The Borrow and Spend Republicans will DROWN US in RED INK!

Tell me how we are gonna fight any more wars if we drown in red ink?

[lovuian]

13. of course they will default so they can STEAL Social Security

let Congress and Bush try that one... just let them try it...

[ecoalex]

14. So China own the U.S. now?

And will own more and more...Thanks deficet boy, you asshat

[NVMojo]

16. yep, China owns us. And Amerikans wonder why they have our jobs!

[Javaman]

17. What I find interesting is this:

"Failure to do so potentially risks throwing the country into its first default in history"

So as long as we raise it, we aren't in default????

It's just money on paper, debt it real. under this fucking moron* we have raised the debt ceiling 4 times!!!! we already in fiscal default!!!!

fucking fucking stupid assholes, these jerkoffs don't seem to fucking get it.

x( :argh: :grr: :banghead:

[ecoalex]

18. So much for National Security >Asshats

[Bush_Eats_Beef]

19. US government warns it's running out of cash

WASHINGTON (AFP) - Treasury Secretary John Snow has warned that unless Congress raises the national debt limit, the US government will run out of cash to finance its daily work in two months.

In a letter to Senate leaders Thursday, Snow said the statutory debt limit imposed by Congress of 8.184 trillion dollars would be reached in mid-February and the government would then lose its borrowing power.

"At that time, unless the debt limit is raised or the Treasury Department takes authorized extraordinary actions, we will be unable to continue to finance government operations," said the letter, seen by AFP.

Snow warned that even if the Treasury took "all available prudent and legal actions" to avoid breaching the ceiling, "we anticipate that we can finance government operations no longer than mid-March. Accordingly, I am writing to request that Congress raise the statutory debt limit as soon as possible."

http://news.yahoo.com/s/afp/20051230/ts_afp/uspoliticseconomy

[Deja Q]

20. China warns US government its gonna want its money back.

We can't keep giving China our jobs; and they were pissed when Microsoft put out less than what they wanted. And China, like Saudi Arabia, owns a lot of our debt. Thanks reagan, you piece of stinking offal. You started this mess. (Nixon opened the door, reagan unleashed the dogs.)

Live each day as happily as you can. We needn't be worried for much longer.


Won't this make us defenseless too? No money to buy weapons or troops?

[ixion]

58. yeah, and don't forget the japanese...

in the Ray-Gun era, they were buying up billions of dollars just to keep the dollar afloat.

We've sold off much of our country, from sea to shinging sea. :-(

[fasttense]

74. Hmmm, maybe that is why Immigration has made it so much easier for

Chinese Communists to get US visas.

[tularetom]

21. Running out? Just print more.

That's what they did in Germany in the 20's. Didn't work out so hot for them, though.

[NanceGreggs]

23. And with the price of heating oil these days ...

... we'll all have something to burn in our fireplaces to keep us warm!

[Ezlivin]

25. Nazi Germany - Our new role model

We seem to be going down a well-trod path to despotism.

[KansDem]

56. And we have all those new designs and colors for large bills!

Wait, I see GOP spin-op here!

FOXNews bimbo 1: Bush announced today that so many Americans love the new colors and designs for $20, $50, and larger denomination bills that he is going to print more of them!

FOXNews bimbo 2: Oooooohhhh, I can hardly wait to go shopping! I wonder how much the new $20 bill will cost?

[RagingInMiami]

22. Of course that won't stop Idiot Shrub from giving more tax breaks

to the wealthy.

[philb]

33. Haven't you heard; immediate tax breaks would bring in the money needed

by stimulating the economy. If things go as his PR indicates,
things should turn around soon and the Gov't would have a surplus.

Of course it didn't work for Reagan or Bush I who ran up the largest
deficits in history, other than Bush II.

The current national deficit of over $8 trillion amounts to over $30,000 per person
My family's share of national debt is more than our home mortgage.

[converted_democrat]

24. It scares me to think about the future of our nation. n/t

[Nite Owl]

26. And he announces this now?

After the tax cuts were passed? Totally irresponsibe and incompetent regime.

[Wordie]

27. K&R

[Bush_MUST_Go]

32. Good thing Congress voted themselves pay raises, BEFORE it was too late...

after they got done cutting Medicare, Medicaid & unimportant services like that.

[Straight Shooter]

28. Didn't Congress recently give itself a raise?

Or maybe it's happened so often that I'm in a perpetual state of deja vu when it comes to pigs at the trough.

[Earth_First]

29. Does this fall under the "Economy is booming" category?

Quick, someone spin this for me! :sarcasm:

[C_U_L8R]

30. No sh*t Sherlock

The Bush administration and the republican party have been
plundering the national treasury for that last 5 years.
Some believe that their goal is to bankrupt the country...
I think th erepublican crooks are simply stuffing their own pockets.

It's time to send these criminals to jail while there's still electricity in the courtrooms.

[AspenRose]

31. You know, if Democrats were into fear mongering like the GOP

we could take this story and RUN WITH IT.

But then again, I think this is a VERY GOOD REASON to BE (very) afraid....

[Vinca]

34. Running out of money? That's not a problem for Bushco.

Besides being King George, he's also King of Credit. Let's hear it for the fiscally-responsible Republican Party.:hurts:

[Cerridwen]

35. Does that mean they have to shut down the "war?"

:sarcasm:

[TheBaldyMan]

59. flame warning - nationalise Halliburton,Bechtel and KBR ...

stop all aid to Israel, troops out of Iraq, ban Humvees, tax rich people, float yuan, outlaw outsourcing.

[Seansky]

36. This one must be shared with all "conservatives" and asked where

did they "financial conservativism" went...Under Clinton we had successful fiscal environment....so much for the conservative foundation...

[Mugsy]

37. Another tax cut anyone?

Good God.

Last year, I told a NeoCon friend that Interest Rates were DANGEROUSLY low. He didn't have a clue what I meant by that.

"Dangerous? How can low interest rates be dangerous?"

I hate having to explain basic economics to Right-wingers, but I explained that with interest rates so low, it becomes more difficult for the Federal Government to convince foreign governments to lend us money to finance our government programs... which we've been doing at an ever increasing rate since The Boy Genius took office (giving a few millionaires a 5% tax cut deprives the Fed of more money than giving millions of poor and middle-class a 10% cut). So the Fed must raise rates to attract foreign investors. But domestically, higher rates slow down the economy by encouraging people to save more and spend less.

And now we are seeing the cold hard devistating effects of "Bush-o-nomics" in action.

What a bunch of freaking j@ck@$$e$! :evilfrown:

(Bumped and Recommended)

[Uncle Joe]

38. Investment Tip #1

Buy a sturdy wheelbarrow, you will need this to transport your de valuated dollars when you go grocery shopping.

[bemildred]

39. Well, why don't they print some more? nt

[Deja Q]

46. Because they want to keep inflation only steadily rising?

[Surya Gayatri]

40. Is this the beginning of a downward

spiral into hyperinflation/deflation, mass bankruptcies, and 1930's-style economic meltdown? Unbridled consumer indebtedness has so far managed to mask structural weaknesses that may become much more evident. SG

[Olney Blue]

41. Quick! Time to cut taxes!

[Xenotime]

42. John Snow is *'s pawn..

he just writes * a blank check and our asses have to cash it.

[Deja Q]

43. Will this affect the social security program, which is safe until 2017?

Oe 2041, depending on who you talk with...

:sarcasm:

[cosmicdot]

65. I think you're on the right track re Social Security ...

Mission Accomplished One-Way-or-Another ... even if it means killing SS by coming through a back door ... they're not done until every public dollar is in their few greedy little hands ...

... and the new deal/great society America is drowned in the bath water ... (imo, its partly motivated by the BFEE's decades-long desire for retribution and retaliation for having business/money taking away from them for trading with the Nazi Germany -- they've held a grudge all these years)

Bu$hCo: we need your Social Security funds for 'homeland security'

the closer the heat comes to these psychos, the more damage they'll inflict upon us

[cliss]

44. Now the puzzle pieces fit together.

When Bush first came into office, I just couldn't believe what they did. It was like a military coup. Started a war. Took away peoples' rights.

What happened?

Now I know. We have been treading the edge of the abyss for quite a while, and not everybody know this. Now we know for sure: the fragile house of cards is starting to vibrate.....

[Selteri]

45. Duh! NM

[FSogol]

47. Uh oh, if we run out, how will * and Dick funnel money to their cronies?

Will they have to cut off payments to journalists?
Cut programs for the poor?

I know. Tax cuts for the wealthiest 1% and tax credits for oil companies.
That's the ticket.

:sarcasm:

[Earth_First]

48. Makes you wonder if this isn't all part of "The Plan"

:tinfoilhat:

[Zorra]

49. Republicans are the big government, borrow and spend party.

They are destroying our country in every way possible, and their continual fiscal irresponsibility is beyond astounding.

Republican voters have got to be the stupidest fuckheads on this planet.

[CoffeeCat]

50. Oh Darn! I guess we have to cancel the war!

Oh, that's right...when we run out of money, instead of stopping this multi-billion dollar waste of a war---we rush to cut programs for the poor.

The war will continue but our own poor children and single moms will have to go without. Also, home-heating assistant will be nixed. Of course, the cost of all of these social programs is just a fraction of the entire war--but never mind that.

Carry on! We must bring the warmth of freedom to Iraqis as we freeze and starve our own citizens.

America, I miss you...

[williesgirl]

51. Write to Senators/Reps we need to stop funding the war in Iraq, not raise

the ceiling level.

[MadHound]

52. Let's see here

Housing sales are waaay down, debt is going up, energy prices rising, social programs cut, strange Enron style bookkeeping going on with the economic figures, yeah, this is looking real bad. Sounds like we're getting ready to head into a downturn that will make the Great Depression look like Roaring Twenties. Glad I'm growing my own food this year, think I'll start planting another plot, we'll need it.

[Sandpiper]

53. Reagan's most lasting legacy

Endless debt from borrow and spend voodoo economics.

[BikeWriter]

54. Quick, invade Iran and Syria!

[jsamuel]

55. SHIT!

[lovuian]

57. This is the same thing that Poppy did then Clinton came in

and saved the economy...Remember the line "Read my lips No more taxes" but Congress had to raise them because of the debt ...

No matter what the Republican Congress are going to have rescind the taxes he cut and raise taxes...

or

they will spend and spend and spend...

they are out to destroy social security and medicare and medicaid but with this debt they won't even help...

[stepnw1f]

60. They Are Putting WE the PEOPLE in a Hole on Purpose

It's easier to control people through money.

[shanti]

61. of course they are, that's the plan

and had been so from the beginning. IF these neocons ever leave office, they will leave the treasury empty. i'd bet money on it.

[KansDem]

62. Gripe all you want, it won't do a damn thing...

The Bushistas are raiding the US Treasury and destroying this country at the same time, and there's nothing that can be done short of revolution.

But keep griping--they don't care. Bush and his cronies are too busy stuffing $$$ into their pockets. They are stealing from the American people. They know it; we know it; they know we know it, it doesn't matter. By the time Americans fully realize what they've done, the only thing left of this administration will be a distant laugh echoing through the halls of a deserted Capitol.

[Miss Chybil]

63. The bathtub's full enough to start drowning our government, now.

Except for the military, of course. They get a snorkle.

[Ariana Celeste]

64. Maybe I just don't understand economics,

Ok, I really don't... but how is it that raising the debt limit would mean they won't run out of cash? How long can they run on empty like this? Seems to me being in debt in the first place means they've run out of cash. Can anyone explain this to me?

:shrug:

[Mugsy]

70. "No more borrowing" unless cap lifted.

The current "$8.2 Trillion dollar cap" on borrowing... a cap Congress raised just this past Summer from the previous $7.5 Trillion dollar cap... is intended to force Congress to limit Federal spending/borrowing (WHAT A FREAKING JOKE!) by capping how much they can borrow. Of course, it doesn't do a damn thing if, instead of controlling spending, they just continue to pump money into our new 51st state and then just raise the cap later.

:mad:

[Ariana Celeste]

73. Thanks, that helps a bit

What a great Congress, eh. x(

[Maestro]

66. Stop spending money in Iraq.

Stop the extreme cutting of taxes to the point that the gov't can't pay for services. Oh and bring back the Democrats who actually know how to run an economy.



And obviously it has only gotten worse.

[Megahurtz]

67. Running out of cash?

Start another fucking war!:sarcasm:

After all, war is BIG BUCKS for these guys.

:(

[BamaBecky]

68. K & R

[MasonJar]

69. Immediately retract the new pay raises for Congress and cut the

pay of Bush/Cheney and their associates immediately and completely. They should pay the citizens for the right to ruin our democracy. Actually if we could institute a taxpayer revolt the Bushistas would be finished.

[progressivebydesign]

71. And people actually vote REPUBLICAN?????

WTF is wrong with people?

[ozymandius]

72. Just rolls off the tongue: eight-point-one-eight TRILLION damn dollars.

We are indebted by eight-point-one-eight TRILLION damn dollars after five years that began with TRILLIONS of damn dollars in a projected surplus to apply towards paying down a massive deficit. Motherfucking Republicans cannot even manage their own damn lunch money.

[pinniped]

75. Snowjob should be fired, he doesn't do shit over there.

Then again, this loser's loser replacement would be just as inept.

Take a page from Germany, just print more money.