Geithner: U.S. to hit debt ceiling/Fiscal Cliff Megathread

[New West Guiana]

Here we go again
CNN Money

As a result, the Treasury Department will soon start using what it calls "extraordinary measures" to prevent government borrowing from exceeding the legal limit.
Such measures include suspending the reinvestment of federal workers' retirement account contributions in short-term government bonds.
On Monday, debt subject to the limit was just $95 billion below the $16.394 trillion debt ceiling.
All told, the extraordinary measures can create about $200 billion of headroom under the limit -- normally about two months worth of borrowing.
But it's unclear how much time the extraordinary measures can buy now because there are so many unanswered questions about tax and spending policies, Geithner said, referring to the lack of any resolution of the fiscal cliff.
"If left unresolved, the expiring tax provisions and automatic spending cuts, as well as the attendant delays in filing of tax returns, would have the effect of adding some additional time to the duration of the extraordinary measures," he wrote.
After the extraordinary measures run out, Treasury won't be able to pay all the country's bills in full and on time. At that point, the United States will run the very real risk that it could default on some of its obligations.
Geithner has predicted for months that the country would hit the debt ceiling by the end of December.
But Congress, first consumed with the 2012 elections and now with the fiscal cliff, has made little effort to raise the ceiling.
Now there's a good chance the debt ceiling issue won't be resolved until the 11th hour and only after an ugly fight.
Indeed, some Republicans have been saying they view the debt ceiling as leverage in budget negotiations in early 2013 in their bid to secure spending cuts.
Before fiscal cliff legislation died last week, House Speaker John Boehner offered President Obama a one-year debt ceiling increase, but only on the condition that spending cuts and reforms exceeded the size of any increase.

Well I can guess how this all will end, the GOP like normal will refuse to give an inch, but in return they'll DEMAND Obama and the Democrats to give a mile in order to get the deal done. If no deal is reached they'll hold the middle class hostage so that the rich will get their much needed tax breaks, then at the 11th hour once again Obama will cave to Republican demands pissing off us Democrats again.
But God willing Obama will not cave in, thus hurting the GOP who is being blamed for the "fiscal cliff" as it is and the GOP will come crawling to Obama with their deal, which will include the same BS that they've been passing off as a real solution for the past twenty years. Then come July we'll start this cycle again.

[Towson]

http://money.cnn.com/2012/12/26/news/ec ... ?hpt=hp_t1
On Monday besides the likely event of the Fiscal Cliff we may also hit the debt ceiling which will start a turn for the worst.
I learned about it on my E-Mail when a message came Wbal tv news (Which I'm subbed for there news feed)say this so i as soon as possible went on NS forms to see anything on this and so far none,So i'm the First!
I believe this started from Obama ignoring warnings on spending From Congress to Focus on Campaigning for Higher Taxes and I believe to solve this problem is to cut spending for the Military and Enlistments besides we should only spend Social Welfare on the Poor not on people who can support them selves.
now off to YouTube to make a witty comment on government in education.
Sorry for the bad grammar,I was in a rush to write this down.so it's ok if you can ignore this and write down your thoughts here.

[Saruhan]

Holy run on sentences batman!

[Silent Majority]

I believe this started from Obama ignoring warnings on spending From Congress

Full stop.


Congress spends money, not the President.

[Khadgar]

As it happens a rather large revenue boost should hit on Tuesday. The combined negotiations should prove somewhat hilariously tragic to watch.

[Cannot think of a name]

Military and Enlistments

So, is it a typo or a game of telephone with talking points you don't understand?

[Greed and Death]

Well they will likely take emergency measures and draw it out a few months.

[Towson]

Holy run on sentences batman!

Sorry i was in a rush.

[Khadgar]

Holy run on sentences batman!

Sorry i was in a rush.

So great a rush that you posted something that is almost entirely inaccurate. The only facts in your post are behind the link. You should feel bad about this.

[Norstal]

I believe this started from Obama ignoring warnings on spending From Congress

Full stop.


Congress spends money, not the President.

And with that, OP's credibility is destroyed.

[Mike the Progressive]

I'm wondering if we should just go over. Tax increases with spending cuts could help resolve our debt issues, or at least I hope they do.

[Greed and Death]

Here we go again
CNN Money

As a result, the Treasury Department will soon start using what it calls "extraordinary measures" to prevent government borrowing from exceeding the legal limit.
Such measures include suspending the reinvestment of federal workers' retirement account contributions in short-term government bonds.
On Monday, debt subject to the limit was just $95 billion below the $16.394 trillion debt ceiling.
All told, the extraordinary measures can create about $200 billion of headroom under the limit -- normally about two months worth of borrowing.
But it's unclear how much time the extraordinary measures can buy now because there are so many unanswered questions about tax and spending policies, Geithner said, referring to the lack of any resolution of the fiscal cliff.
"If left unresolved, the expiring tax provisions and automatic spending cuts, as well as the attendant delays in filing of tax returns, would have the effect of adding some additional time to the duration of the extraordinary measures," he wrote.
After the extraordinary measures run out, Treasury won't be able to pay all the country's bills in full and on time. At that point, the United States will run the very real risk that it could default on some of its obligations.
Geithner has predicted for months that the country would hit the debt ceiling by the end of December.
But Congress, first consumed with the 2012 elections and now with the fiscal cliff, has made little effort to raise the ceiling.
Now there's a good chance the debt ceiling issue won't be resolved until the 11th hour and only after an ugly fight.
Indeed, some Republicans have been saying they view the debt ceiling as leverage in budget negotiations in early 2013 in their bid to secure spending cuts.
Before fiscal cliff legislation died last week, House Speaker John Boehner offered President Obama a one-year debt ceiling increase, but only on the condition that spending cuts and reforms exceeded the size of any increase.

Well I can guess how this all will end, the GOP like normal will refuse to give an inch, but in return they'll DEMAND Obama and the Democrats to give a mile in order to get the deal done. If no deal is reached they'll hold the middle class hostage so that the rich will get their much needed tax breaks, then at the 11th hour once again Obama will cave to Republican demands pissing off us Democrats again.
But God willing Obama will not cave in, thus hurting the GOP who is being blamed for the "fiscal cliff" as it is and the GOP will come crawling to Obama with their deal, which will include the same BS that they've been passing off as a real solution for the past twenty years. Then come July we'll start this cycle again.

this is the time to cave, elections are almost 2 years away, and Americans don't remember farther than 6 weeks out.

[Chronic Hypersomnia]

The people, because they can't rely on themselves to fix their own problems, and instead, prefer to throw money at a bunch of rich bureaucrats who just want to make more money so the can win more elections to get even more money.

[Greed and Death]

I'm wondering if we should just go over. Tax increases with spending cuts could help resolve our debt issues, or at least I hope they do.

the Democrats will have the better bargaining position once we go over.
Taxes will be higher, so the GOP will look like the anti tax cut Grinch.

[Grand Britannia]

Impeach Obama.

[Khadgar]

Here we go again
CNN Money

Well I can guess how this all will end, the GOP like normal will refuse to give an inch, but in return they'll DEMAND Obama and the Democrats to give a mile in order to get the deal done. If no deal is reached they'll hold the middle class hostage so that the rich will get their much needed tax breaks, then at the 11th hour once again Obama will cave to Republican demands pissing off us Democrats again.
But God willing Obama will not cave in, thus hurting the GOP who is being blamed for the "fiscal cliff" as it is and the GOP will come crawling to Obama with their deal, which will include the same BS that they've been passing off as a real solution for the past twenty years. Then come July we'll start this cycle again.

this is the time to cave, elections are almost 2 years away, and Americans don't remember farther than 6 weeks out.

Two years to spout bullshit and not be called on it by the lazy ass media.

[Greed and Death]

this is the time to cave, elections are almost 2 years away, and Americans don't remember farther than 6 weeks out.

Two years to spout bullshit and not be called on it by the lazy ass media.

Yep the GOP has learned be the most crazy right after an election.

[Cannot think of a name]

I'm wondering if we should just go over. Tax increases with spending cuts could help resolve our debt issues, or at least I hope they do.

In the same way cutting off your foot will solve that ingrown toenail.

[Khadgar]

Two years to spout bullshit and not be called on it by the lazy ass media.

Yep the GOP has learned be the most crazy right after an election.

I'm starting to agree with Carlin, the circles are just getting smaller and faster.

[Norstal]

Impeach Obama.

Impeach the constitution.

[Greed and Death]

I'm wondering if we should just go over. Tax increases with spending cuts could help resolve our debt issues, or at least I hope they do.

In the same way cutting off your foot will solve that ingrown toenail.

Polling is suggesting that 70% of those who starve or dies from lack of medical care as a result of going over the cliff will be Democratic voters.

[Grand Britannia]

Impeach Obama.

Impeach the constitution.

Perfect, that ought to distract everyone from the Fiscal Cliff AND the Default.

[Herigjen]

I herd some professor say that republican party will never win an election again. The gap between white old men and lower class americans and imigrants is only growing, and Bush jr marked the last republican president ever. To some extent I belive this to be true but I also belive that the democrats will spilt into two groups alongside them growing

[Khadgar]

I herd some professor say that republican party will never win an election again. The gap between white old men and lower class americans and imigrants is only growing, and Bush jr marked the last republican president ever. To some extent I belive this to be true but I also belive that the democrats will spilt into two groups alongside them growing

Oh if the Republicans split off the Tea Party nutters and ditched some racism and homophobia they'd be fine. There's nothing inherently wrong with their positions, other than the mathematically impossible ones, and the blindingly stupid ones.

[Cannot think of a name]

I herd some professor say that republican party will never win an election again. The gap between white old men and lower class americans and imigrants is only growing, and Bush jr marked the last republican president ever. To some extent I belive this to be true but I also belive that the democrats will spilt into two groups alongside them growing

We say this every time a party loses a big election. Plus, looking at how a majority voted for the Democrats in the House but the Republicans still have a majority, plus all the state houses and Governorships that Republicans hold they can shift the gears of power enough to keep themselves relevant.

Plus, the Democratic Party is a huge party (like the Republicans) and are bound to do something stupid making the public then switch to what they think is the only alternative, the Republicans.

Or, if all that fails, the Democrats will stabilize things, things will go okay, and suddenly everyone will become a Republican thinking that they'll protect all the money and stuff they now have until the ship is torpedoed again and we all go crawling back to the Democrats and then whine that they're not fixing things fast enough.