Geithner has been saying that since six months ago. Man has cried wolf so many times I don't see how we can trust a word that comes out of Treasury's mouth.
Geithner has been saying that since six months ago. Man has cried wolf so many times I don't see how we can trust a word that comes out of Treasury's mouth.
airshocker
You don't have to trust Geithner word; he is not the only one who's been saying this. Moody's, S&P's, the IMF, and a long list of other well respected analysts have come out and said the same exact thing. Bad things are going to happen August 2nd if we don't raise the debt ceiling. There's no avoiding it. The U.S. is going to default on its obligations - the money is just not going to be there. Since May 16th, when we hit the debt ceiling, the treasury has been shuffling money around to try and avoid this unimaginable scenario. But in a few days he won't have any more money to shuffle around.
Geithner has been saying that since six months ago. Man has cried wolf so many times I don't see how we can trust a word that comes out of Treasury's mouth.
-Sun_Tzu-
You don't have to trust Geithner word; he is not the only one who's been saying this. Moody's, S&P's, the IMF, and a long list of other well respected analysts have come out and said the same exact thing. Bad things are going to happen August 2nd if we don't raise the debt ceiling. There's no avoiding it. The U.S. is going to default on its obligations - the money is just not going to be there. Since May 16th, when we hit the debt ceiling, the treasury has been shuffling money around to try and avoid this unimaginable scenario. But in a few days he won't have any more money to shuffle around. The scenario is a bit frightening to be honest
I never once heard may 31st. Perhaps you're getting stuff mixed up? Regardless, it's not something that should be taken lightly.Nibroc420
Perhaps I got the dates mixed up, but he has made arbitrary dead-lines before. I see no reason to listen to a word he says anymore in regards to the debt ceiling.
You don't have to trust Geithner word; he is not the only one who's been saying this. Moody's, S&P's, the IMF, and a long list of other well respected analysts have come out and said the same exact thing. Bad things are going to happen August 2nd if we don't raise the debt ceiling. There's no avoiding it. The U.S. is going to default on its obligations - the money is just not going to be there. Since May 16th, when we hit the debt ceiling, the treasury has been shuffling money around to try and avoid this unimaginable scenario. But in a few days he won't have any more money to shuffle around. -Sun_Tzu-
We're not going to default on the interest to our debt. That's fear-mongering. We take in enough tax revenue to pay for the debt and quite a few other things.
[QUOTE="Nibroc420"]I never once heard may 31st. Perhaps you're getting stuff mixed up? Regardless, it's not something that should be taken lightly.airshocker
Perhaps I got the dates mixed up, but he has made arbitrary dead-lines before. I see no reason to listen to a word he says anymore in regards to the debt ceiling.
Uhh, ok. FYI: They've already reached the limit, they've just been shuffling around funds in an attempt to keep things afloat. Aug 2 is the date when there'll be no more funds left to move around.
Uhh, ok. FYI: They've already reached the limit, they've just been shuffling around funds in an attempt to keep things afloat. Aug 2 is the date when there'll be no more funds left to move around.Nibroc420
What will happen? The US currency will slump, the stock market will experience some devaluation, and there will most certainly be a rise in private debt. There will most likely be a bunch of foreign markets making acquisitions of US companies.
Just look at some of the other countries that went through debt default. However I'm sure this one will effect international economics much more than the other defaults did.
[QUOTE="Nibroc420"]Uhh, ok. FYI: They've already reached the limit, they've just been shuffling around funds in an attempt to keep things afloat. Aug 2 is the date when there'll be no more funds left to move around.airshocker
What's your point? I already knew all of this.
:?[QUOTE="airshocker"] "I see no reason to listen to a word he says anymore in regards to the debt ceiling." I suppose you're still listening to him then?
[QUOTE="-Sun_Tzu-"]You don't have to trust Geithner word; he is not the only one who's been saying this. Moody's, S&P's, the IMF, and a long list of other well respected analysts have come out and said the same exact thing. Bad things are going to happen August 2nd if we don't raise the debt ceiling. There's no avoiding it. The U.S. is going to default on its obligations - the money is just not going to be there. Since May 16th, when we hit the debt ceiling, the treasury has been shuffling money around to try and avoid this unimaginable scenario. But in a few days he won't have any more money to shuffle around. airshocker
We're not going to default on the interest to our debt. That's fear-mongering. We take in enough tax revenue to pay for the debt and quite a few other things.
I never said we were going to default on the interest to our debt, although that becomes a strong possibility if the debt ceiling isn't raised. But we do default on our obligations no matter what. A lot of people aren't going to be getting money that they are legally entitled to come August 2nd if nothing's been done, and that will have severe consequences. It's a terrifying prospect, but it's not fear-mongering.
[QUOTE="Nibroc420"]:? I suppose you're still listening to him then?airshocker
Because no one else has explained the situation other than Geithner, right? :roll:
I dont get it then. You're not listening to Geithner, because you dont trust him. But if someone else says the same thing, you'll believe that? If it's true, it doesn't matter who says it.
I never said we were going to default on the interest to our debt, although that becomes a strong possibility if the debt ceiling isn't raised. But we do default on our obligations no matter what. A lot of people aren't going to be getting money that they are legally entitled to come August 2nd if nothing's been done, and that will have severe consequences. It's a terrifying prospect, but it's not fear-mongering. -Sun_Tzu-
You were being purposefully vague by just saying "obligations".
Just playing devils advocate here, but perhaps seeing what we can and can't pay for through taxes will be a good learning experience.
I dont get it then. You're not listening to Geithner, because you dont trust him. But if someone else says the same thing, you'll believe that? If it's true, it doesn't matter who says it.Nibroc420
If someone else says it, someone I respect, then I do trust Geithner. I don't trust just his word alone.
[QUOTE="-Sun_Tzu-"]You don't have to trust Geithner word; he is not the only one who's been saying this. Moody's, S&P's, the IMF, and a long list of other well respected analysts have come out and said the same exact thing. Bad things are going to happen August 2nd if we don't raise the debt ceiling. There's no avoiding it. The U.S. is going to default on its obligations - the money is just not going to be there. Since May 16th, when we hit the debt ceiling, the treasury has been shuffling money around to try and avoid this unimaginable scenario. But in a few days he won't have any more money to shuffle around. airshocker
We're not going to default on the interest to our debt. That's fear-mongering. We take in enough tax revenue to pay for the debt and quite a few other things.
No you don't that's the problem, America has been slashing taxes for years, i think 30? but the point is they are way too low and don't bring in nearly enough revenue. My country's taxes are in some brackets, nearly 25% higher than the US's. America has to raise taxes to solve this debt problem, there's no quick fix, it'll hurt jobs will be lost but it's a necessary evil.
No you don't that's the problem, America has been slashing taxes for years, i think 30? but the point is they are way too low and don't bring in nearly enough revenue. My country's taxes are in some brackets, 10% higher than the US's. America has to raise taxes to solve this debt problem, there's no quick fix, it'll hurt jobs will be lost but it's a necessary evil. angrules23
[QUOTE="-Sun_Tzu-"]You don't have to trust Geithner word; he is not the only one who's been saying this. Moody's, S&P's, the IMF, and a long list of other well respected analysts have come out and said the same exact thing. Bad things are going to happen August 2nd if we don't raise the debt ceiling. There's no avoiding it. The U.S. is going to default on its obligations - the money is just not going to be there. Since May 16th, when we hit the debt ceiling, the treasury has been shuffling money around to try and avoid this unimaginable scenario. But in a few days he won't have any more money to shuffle around. angrules23
We're not going to default on the interest to our debt. That's fear-mongering. We take in enough tax revenue to pay for the debt and quite a few other things.
No you don't that's the problem, America has been slashing taxes for years, i think 30? but the point is they are way too low and don't bring in nearly enough revenue. My country's taxes are in some brackets, 10% higher than the US's. America has to raise taxes to solve this debt problem, there's no quick fix, it'll hurt jobs will be lost but it's a necessary evil. They simply have to increase taxes on the rich, and remove the loopholes for big corporations. But nope, no-ones down for taking money from the rich, only the poor.
We're not going to default on the interest to our debt. That's fear-mongering. We take in enough tax revenue to pay for the debt and quite a few other things.
Nibroc420
No you don't that's the problem, America has been slashing taxes for years, i think 30? but the point is they are way too low and don't bring in nearly enough revenue. My country's taxes are in some brackets, 10% higher than the US's. America has to raise taxes to solve this debt problem, there's no quick fix, it'll hurt jobs will be lost but it's a necessary evil. They simply have to increase taxes on the rich, and remove the loopholes for big corporations. But nope, no-ones down for taking money from the rich, only the poor.
Exactly, middle income earners and high income earners need to be taxed more, with the ability for tax minimisation severely reduced.
We're not going to default on the interest to our debt. That's fear-mongering. We take in enough tax revenue to pay for the debt and quite a few other things.
Nibroc420
No you don't that's the problem, America has been slashing taxes for years, i think 30? but the point is they are way too low and don't bring in nearly enough revenue. My country's taxes are in some brackets, 10% higher than the US's. America has to raise taxes to solve this debt problem, there's no quick fix, it'll hurt jobs will be lost but it's a necessary evil. They simply have to increase taxes on the rich, and remove the loopholes for big corporations. But nope, no-ones down for taking money from the rich, only the poor.
Nearly half of the US households don't pay federal income tax.......
[QUOTE="Nibroc420"][QUOTE="angrules23"] No you don't that's the problem, America has been slashing taxes for years, i think 30? but the point is they are way too low and don't bring in nearly enough revenue. My country's taxes are in some brackets, 10% higher than the US's. America has to raise taxes to solve this debt problem, there's no quick fix, it'll hurt jobs will be lost but it's a necessary evil. Mafiree
They simply have to increase taxes on the rich, and remove the loopholes for big corporations. But nope, no-ones down for taking money from the rich, only the poor.
Nearly half of the US households don't pay federal income tax.......
Class warfare ftw
Good point. Too bad they've all got those anchor babies.
[QUOTE="-Sun_Tzu-"]I never said we were going to default on the interest to our debt, although that becomes a strong possibility if the debt ceiling isn't raised. But we do default on our obligations no matter what. A lot of people aren't going to be getting money that they are legally entitled to come August 2nd if nothing's been done, and that will have severe consequences. It's a terrifying prospect, but it's not fear-mongering. airshocker
You were being purposefully vague by just saying "obligations".
Just playing devils advocate here, but perhaps seeing what we can and can't pay for through taxes will be a good learning experience.
Vague how? I made a broad statement, not a vague one. The U.S. still defaults even if we pay the interest on our debt. The U.S. has a countless number of obligations. If we don't pay social security recipients, that is a default. If we don't pay veteran's benefits, that is a default. If we don't pay current troops overseas, that is a default. If we don't pay lower income people in food stamps, that is a default. If we don't give college students the federal loans that they are entitled to, that is a default. I can go on and on. The U.S. has a legal obligation to honor all of these contracts; from interest on our debt to food stamps. If we don't honor these legally binding contracts, we'd be going into default.
Vague how? I made a broad statement, not a vague one. The U.S. still defaults even if we pay the interest on our debt. The U.S. has a countless number of obligations. If we don't pay social security recipients, that is a default. If we don't pay veteran's benefits, that is a default. If we don't pay current troops overseas, that is a default. If we don't pay lower income people in food stamps, that is a default. If we don't give college students the federal loans that they are entitled to, that is a default. I can go on and on. The U.S. has a legal obligation to honor all of these contracts; from interest on our debt to food stamps. If we don't honor these legally binding contracts, we'd be going into default. -Sun_Tzu-
One can be vague by being broad.
We won't be going into default concerning paying the interest on our debt, which seems to be the one thing that would definitely screw our world up.
It's not just that they could tax the rich more, it's that they could also stop spending so much. Do you know how many worthless government programs are out there at the moment? How many bloated, ineffectual offices there are out there (besides congress, mind you :P)? We don't NEED that stuff. We could cut those AND tax more, and have the debt paid off twice as quickly and then we'd be in a much better place for passing other bills and perhaps lowering taxes or founding (useful) government programs after the economy has been fixed.
I'm pretty sure US is gonna pull through this one.
nitekids2004
Considering that this is mostly just politics I'd say you are probably right. I'd agree with you 100%, but the tea party members have me on edge. Seriously I may not like most republicans in Congress right now, but I do trust them enough that I believe they understand the need to do the essentials like this. The tea party on the other hand, I just don't get the feeling that they understand what needs to be done.
It's not just that they could tax the rich more, it's that they could also stop spending so much. Do you know how many worthless government programs are out there at the moment? How many bloated, ineffectual offices there are out there (besides congress, mind you :P)? We don't NEED that stuff. We could cut those AND tax more, and have the debt paid off twice as quickly and then we'd be in a much better place for passing other bills and perhaps lowering taxes or founding (useful) government programs after the economy has been fixed.
Saturos3091
Honestly I just don't get it. Granted I don't know much of anything and just recently got interested in my countries politics and I don't understand how we can be in so much debt and spend so much money on worthless programs and continue to lower taxes and not close loopholes.
It's not just that they could tax the rich more, it's that they could also stop spending so much. Do you know how many worthless government programs are out there at the moment? How many bloated, ineffectual offices there are out there (besides congress, mind you :P)? We don't NEED that stuff. We could cut those AND tax more, and have the debt paid off twice as quickly and then we'd be in a much better place for passing other bills and perhaps lowering taxes or founding (useful) government programs after the economy has been fixed.
Saturos3091
But the Republicans dont want that. And Obama is prepared to Veto anything that doesn't include a tax increase. Meaning Aug 2nd will be an exciting day. Quick Americans! Switch to a different Currency while the USD is still worth something!
It's not just that they could tax the rich more, it's that they could also stop spending so much. Do you know how many worthless government programs are out there at the moment? How many bloated, ineffectual offices there are out there (besides congress, mind you :P)? We don't NEED that stuff. We could cut those AND tax more, and have the debt paid off twice as quickly and then we'd be in a much better place for passing other bills and perhaps lowering taxes or founding (useful) government programs after the economy has been fixed.
Nibroc420
But the Republicans dont want that. And Obama is prepared to Veto anything that doesn't include a tax increase. Meaning Aug 2nd will be an exciting day. Quick Americans! Switch to a different Currency while the USD is still worth something! Obama will not veto anything..... If it gets passed the senate it would be political suicide to do so.
I'm pretty sure US is gonna pull through this one.
Nibroc420
It already appears that their AAA status might be downgraded.
Yeah, it probably will. i'd :lol: if this happens though. The standard of risk-free rate defaults :lol:
Warren Buffet said something interesting to fix the deficit: "I could end the deficit in 5 minutes. You just pass a law that says anytime there's a deficit of more than 3% GDP, all sitting members of Congress are ineligible for re-election".
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