Hello, Debt Limit: Geithner Plans ‘Extraordinary Measures’
The last time the Obama administration notified Congress about approaching the debt ceiling, Republicans told the White House that unless the administration agreed to major spending cuts, Congress would not agree to raise the limit. The resulting debt standoff led to the Budget Control Act of 2011– a temporary fix that raised the debt limit last year in exchange for spending cuts. The stalemate also led one of the major credit rating agencies to downgrade the U.S. government’s credit rating for the first time in its history.
The Budget Control Act contained a provision to ensure that Congress would meet the obligatory deficit reduction targets by slashing spending by $1.2 trillion over 10 years starting January 1, 2013, which along with the expiring tax provisions will ultimately lead to the impending “fiscal cliff.”
Earlier this year, when a new round of sparring over the budget limit began, House Speaker John Boehner (R-Ohio) said he would not allow another increase in the country’s borrowing limit without an accompanying amount of spending cuts and reforms.
Seven months after Boehner’s remarks, the White House and Congress have yet to reach an agreement.
President Barack Obama tried to include the borrowing limit in the most recent budget talks, but Republican leaders demanded concessions in return. These negotiations ended in an impasse last week, after Boehner showed willingness to raise the debt ceiling for a year if Obama agreed to severe cuts in entitlement programs.
Obama and lawmakers returned to Washington shortly after Christmas to resume talks, with the House of Representatives announcing Thursday evening that it will return on Sunday in the hopes of springing back into action.
“The hope is the Senate will act responsibly and send us back their plan—either pass the bill we sent them or send us back what they pass,” said Rep. Blake Farenthold (R-Texas). “We’re coming back on Sunday to be ready to address what the Senate sends us.”
Boehner said on Wednesday that the Senate must act first on any new plan.
“The lines of communication remain open, and we will continue to work with our colleagues to avert the largest tax hike in American history, and to address the underlying problem, which is spending,” said the House leader in a statement.
Obama has said he would refuse to let Republicans leverage spending cuts in return for increasing the debit limit. But Republicans are aware that the threat of voting against raising the debt ceiling is an effective way of winning deficit reduction concessions.
Congressional leaders from both parties will meet Obama at the White House this afternoon in an 11th hour attempt to broker a deal, even if it is a scaled-back version of the package they sought to pass after the November election.
Also read: House Likely to Offer Amendments to Any Senate Cliff Deal
“extraordinary measures?” So tax-cheat Timmy is going to hire Enron accountants?
Let’s face it, the Fed gov’t is the biggest criminalize enterprise in the world. It creates money out of thin air, all the while it ‘borrows’ from Peter to pay Paul.
And no one should think that the money changers in Washington are dumb as ox. They aren’t. And they do understand what balance sheets entail, and assets and liabilities too. They just don’t care.
And this ‘fiscal cliff’ is tailor made for the thugs and thieves-in-suits just fine, they now have a ‘crisis’ which is tailor made for the TOTAL deconstruction of the country. And if this isn’t the case, this blogger will eat everyone’s hat in sight – http://adinakutnicki.com/2012/12/27/dhs-americas-planned-deconstruction-via-valerie-jarrett-domestically-foreign-policy-wise-addendum-to-barack-hussein-obamas-deconstruction-plans-commentary-by-adina-kutnicki/
Have you ever left a comment without link-whoring?
Aren’t you the guy that bitches that people make “undocumented” claims and now you’ve invented “link whoring” as a new epithet when someone dares to express an opinion you don’t agree with?
Keep up the great work many of us appreciate what you do.
Little Timmy tax cheat and big Ben Bernanke have successfully guaranteed loans all over the world through unauthorized treasury backings.The total are reportedly in the trillions. Few know about these US backed loans to foreign countries. The amounts are huge and may one day assure a Soros initiated financial collapse.
Our country is financially broke and spends in a completely unsustainable and illogical fashion. It has made all sorts of promises to various political constituencies that can’t be kept.
For the good of future generations the irresponsible spending must stop. I know with certainty that won’t happen. Our collapse awaits. For those who have not prepared it’s going to be a very hard landing.
“For the good of future generations the irresponsible spending must stop…. For those who have not prepared it’s going to be a very hard landing.”
The longer we wait, the harder the landing. I’d love to see the House refuse to raise the debt limit under any circumstances, and force the government to either live within it’s means, or shut down. If our elected representatives fail to make the decision with eyes wide open, then the decision will be made for us by hard math.
It’s a choice between the limited government of the Constitution, and a fairy-tale social democracy that progressives tell us we should want but apparently cannot afford to have. We already have two hundred years of experience telling us which of the two actually works.
$1.2 trillion over 10 years
Since that equals one year of deficits, I’m not seeing a rosy future here. We are at $16+T now, if we add even 10T over ten years and cut $1.2T over that ten years, we are still adding $8.8T. Just not seeing that as much of a plan.
When my credit card is maxed out, my first response isn’t to stop paying all my debts. I still pay my mortgage, credit card, car payment (if I have one) etc. Then I figure out a way to cut my spending in other places. Such as not giving any money to my neighbors that hate me. And not giving any money to an “artiste” that puts my religious symbol into a jar of his piss and calls it art. Maybe tell my kids we’re not going to Disney Land this year.
What I don’t do is go to the bank and ask for an increase in my debt limit, and when they tell me I have to cut my spending I don’t offer to cut $1.00 in exchange for having my credit card limit doubled.
Is it me or is this a fairly simple concept? anyone that can use Turbotax should be able to, oh wait.
Of course it is not a valid plan it like everything else from this administration is a crock of shit provided to act like they are doing something which when the day is done is still a crock of shit and ruining the country…just telling like it is, with no damned political correctness applied!
“Extraordinary” = illegal. But, what the hell, since when has the law been an impediment to the 0 Administration? Yeah, right…never!
Democrats: No laws can stop them! No morals can stop them! …For the greater good (and the children)! (Remember, left/liberal tyranny is “social justice”… shut up and plow, comrade.)
On the contrary, the law specifically allows them to do this. This is one reason I pulled out all the money I had in the G-Fund in my TSP.
Looks like Obama is taking some extraordinary measures also.
Obama Orders Pay Raise for Biden, Members of Congress, Federal Workers.
Never has there been a group more deserving…..
Looks like Obama is taking some extraordinary measures also.
Obama Orders Pay Raise for Biden, Members of Congress, Federal Workers.
Never has there been a group more deserving…..
Now, you’ve got a clue. It’s all going to be done through executive orders.
They’re not interested in honest and open negotiations. They’re just waiting for the right moment and the right excuse…their ‘long march’ through our institutions is almost complete. All they need is the appropriate, and properly timed, ‘national emergency.’
Keep in mind that Obama and the left are looking for a reason to declare a ‘national emergency’ or an excuse to declare martial law. Will a financial collapse be the ticket? Remember their response to the collapse in 2008? ‘Tanks in the street,’ I think it was?
Will it be yet another mass shooting, or worse? Promoting additional and further outrage against gunowners? …especially if said gunowners refuse to peacefully surrender their guns before, during or after a ‘national emergency’? (remember Katrina)
Will it be another Hurricane Sandy, or a tornado outbreak or a massive earthquake??
Will it be war with Iran?
…at this point, if the timing is right, any excuse will do…
…and they expect most of you ‘bitter clingers’ to roll over and submit w/o a fight.
Why should we have due process of law, that might be Constitutional or something.
If there were any doubt in anyone’s mind that obama doesn’t consider himself at least king, if not emperor, this latest slap in the face of the 53% that still pay income tax should wake them up. I think he is trying to provoke civil unrest so he can declare some sort of “national emergency”, then do as he pleases….. oh wait, that’s what executive orders are for… to do as he pleases. Congress? We don’t need no stinking congress.
Geithner is in beyond his capabilities … so is Obama. Time to get real.
So pray tell – whom among this shady cast of characters is capable? I’m afraid the ‘cream of the crop’ amongst the most incompetent pack of fools this country has ever gathered together have risen to the top. And the ‘cream’ is scum.
I almost spewed my beer your reply was so great, thanks from a poor guy who still has a job, but for how long I can’t tell you!
Timothy Geithner incompetent, heck this whole administration has reached the true definition of the “Peter Principe” not jut raised to a level of incompetence but Evil as well!
Competence is “racist,” you know.
And saying “competence is racist” is also racist!
It just keeps getting worse doesn’t it?
I used to think the Republicans were the adults in the room when they met with Zero – I no longer think that. Face it – the big ole cliff is coming – not the one where taxes go up on everyone but the one where nobody is fool enough to lend this country money any longer and the printing presses of the Fed can no longer keep up – or even produce a viable product. In other words our currency will have become worthless. How far down the road is that? Good question.
Currently we are among the most responsible – and that ain’t nothing to brag about!
“…the big ole cliff is coming … where nobody is fool enough to lend this country money any longer….”
On the contrary, will continue to be able to borrow at historically low levels on interest. Time to repair the infrastructure!
Thats like saying fishing is easy when the creek is low. But sooner or later the creek rises. Best to have a paddle handy. Printing money is the closest thing I’ve ever seen to the mythical perpetual motion machine.
The game continues as long as law enforcement and military employees clock in and do their jobs in return for US script.
Deficit for the first two months of the current fiscal year has come in just shy of $$$$$ 300 Billion.
That is on track for a new record shattering deficit of $$$$$$$$ 1.8 TRILLION.
Thank you President Hopey Changey, spread the wealth around. Obamanomics in action.
I never understood why the Republicans felt they didn’t have ALL the leverage in these negotiations. Obama and Reid don’t want to negotiate deep spending cuts and significant entitlement reform? Okay, don’t raise the debt ceiling, which forces a 45% spending cut.
Republican, just another way to spell Democrat…
The Republican leadership is in no way earnestly looking to change the status quo. They believe in BIG Govt as much as the Democrats do. They don’t even want the reigns of power, they much prefer to make the backroom deals to feed their pet pigs.
Republicans do have leverage – if they could quit listening to the MSM for a while. They are going to get hammered by them anyway so why would they not do the right thing? I suspect its because they like the spending money as much as the Democrats. All but the most conservative of them anyway.
The article leaves out one simple fact – if we do not raise the debt ceiling the Treasury Department would still be able to make all of the payments on existing debt using INCOME from taxes. All that a failure to raise the debt ceiling does is force first the administration and later congress to make hard choices like do we pay the interest on the debt or do we fund welfare, food stamps, and a huge federal bureaucracy – just like a family does when they choose between funding cable TV or new shoes for the kids. The only way to pare down the size and scope of the federal government is to cut off borrowing. To do otherwise is to condemn the next 2-3 generations to a life of tax slavery in a bankrupt country working their lives away to pay down the debt that we ran up.
The government only follows what society in general does. Afterall, our government is run by those elected from the people. Checkout the historical charts of the ‘peoples’ debt to income. Who do you think props up this debt mess of the people much less the same circular created mess in the governments of the land? The printing presses cranking out devalued fiat USD and bond notes?
When debt, private or public, begins to exceed the FY economic GDP of the land, serious consequences are ahead. These circumstances have little to do with any particular political party and much more to do with the people at large of the land.
The solutions are few. Reviving a responsible individual society — reviving a responsible economy — reviving a responsible government — enacting a tax system that will pay for ‘everybodys’ irrespnsibility. Any of those impossible or don’t like them, then all left is the consequences!
People, explain me how the economy works in this country!
I have a house, two cars, modest job, two children in college. I don’t have a penny in debt, because I never borrowed a penny. Everything was paid by hard cash. I never got a penny from my parents (God bless them in Heaven!)after I was 18 years old.
My children know well my iron rule: Never buy anything that you cannot afford, and even if you can think twice if you really need it!
What is going on with this country?
Now you’re a racist rightwing extremist… it’s normal to be in debt up to one’s butt, consume without any kind of responsibility and buy all kinds of un-needed junk with money one doesn’t have– anything else is sick, you know.
Today, $12 of spendable income is equal to $1.43 value in the 1950s. In 1950 the national consumer debt was 23B and for FY 2012 it is 2.6T through the 3Q. Pretty soon it becomes a circular continuum on a road of individual and national economic destruction. The national debt is now more than our FY GDP and climbing rapidly, not counting consumer debt.
Now, heres the saddest part! While it is in vogue for people to blame a particular party for the economic mess we’re in, it really isn’t. The masters of economic disaster originates from all the economic intellectuals in the many think tanks and higher education who consult for congress, the Executive branch and Wall Street. These people are corrupted and serve more for the financial entities of Wall Street and other like global market manipulators. Intellectuals rarely think beyond their eye brows and consider such silly things as consequences. When they do think of consequences they only weight so far as to whether or not it will deny them their wealth and power. If it doesn’t then they simply don’t care. For decades no, the Fed Reserve has been a willing conspirator with these intellectuals.
Bottom line? None of the intellectuals know what to do to turn anything around. Throughout history, when governments or rulers sought the counsel of intellectual philosophers, their nation eventually fell.
Maybe Timmie can figure it out on Turbo Tax.
This administration reminds me of a cesspool; the really big chunks float to the top.
“Exraordinary measures”? Like actually paying his taxes?
Time to tell the nation the truth. Call out the MSM for letting the Senate and the president not having a budget for three years. President Obama has been in office for four years and he does not have an idea nor the will to cut spending. Irresponsible President, Senate, Congress and especially the MSM for keeping this charade. The welfare, unemployment benefits and disability income schemes are out of control. Conservative Republican Congressmen need to oust Boehner and put a more realistic, common sense, and courageous person in charge as Speaker.
Published on Sep 14, 2012 by SchiffReport
The geniuses at the Federal Reserve have concocted a bold new plan to revive the U.S. economy — print a bunch of money, loan it to Americans at super low interest rates so they can speculate on rising real estate prices, extract the appreciated equity and spend it on consumer goods. In other words, build an economy of real estate, by real estate, and for real estate. The only problem is we’ve been there and done that. The last time it almost destroyed the U.S.economy. I guess almost isn’t quite good enough for the Fed, so now it’s determined to finish the job.
http://www.youtube.com/watch?v=LS879r7xeLc
Ron Paul Lecture – “The Great Enabler: The Rise of the Federal Reserve and the Growth of Government”
http://www.youtube.com/watch?v=ehh77k0rgPs&list=UUTDBBcNcuVZjPg223ka357Q&index=6
Extend, Pretend, Bailout, Print and Spend until the US dollar is zimbucks. That’s the plan, YES WE CAN!!
There are NO politically acceptable solutions to our out of control spending, which is not that surprising when you consider that ALL the incentives only operate to increase not decrease spending until it cannot any more and the country suffers full blown economic collapse.
Before the US dollar detonates however your 401k WILL be confiscated and given to those deemed TBTF.
More change to look forward to. And if did not vote for Romney or Garry Johnson, change you deserve.
The fiscal cliff represents a major disaster to the economy. Yeilding the debt limit to the executive branch is a major disaster to the constitution and the nations governance. The debt limit is the final saftey from totalatarianism.
I just read a book lamenting that the cost of the 40 year cold war arms race with the Soviet Union was $4 Trillion in debt.
That’s about what 1 term of Obama cost us.