Vote on Debt Limit increase?

[Riot]

Originally Posted by joeydb

What would you do as a member of Congress?

You have to vote yes. There isn't any option that will not irrepairably harm this country regarding our credit rating and interest rates, and our standing in the world financial community if "no" votes dominate. To think that there is a choice, is beyond absurd. This vote is not the place for anyone to "take a stand". That's stupid.

[geeker2]

Originally Posted by Riot

You have to vote yes. There isn't any option that will not irrepairably harm this country regarding our credit rating and interest rates, and our standing in the world financial community if "no" votes dominate. To think that there is a choice, is beyond absurd. This vote is not the place for anyone to "take a stand". That's stupid.

Actually you don't. Just because the debt limit isn't raised it doesn't mean we will not make the interest payment on the debt. It just means the government would have to divert payments from elsewhere. You know it's kind of like spending what you can afford.

Maybe they should start by cutting all those flights on Air Force One and wasted congressional trips abroad.....

[Riot]

Originally Posted by geeker2

Actually you don't. Just because the debt limit isn't raised it doesn't mean we will not make the interest payment on the debt.

It does mean our credit rating is immediately and permanently impacted, and that interest rate has now skyrocketed. Let alone the impact on the world markets. Thinking there is no serious, long-term consequences is absurdly wrong.

So that's "actually, you do".

[dellinger63]

[quote=Riot;770201]

Actually you do. It does mean our credit rating is immediately impacted, and that interest rate has now skyrocketed. Thinking there is no "real" consequences is absurd.

What happens in 10-20 years when GDP equals or is less than our interest payment and no one but Cash-For-Gold is willing to give us money? Or will we keep printing monay and a gallon of milk will cost $2K?

[Riot]

[quote=dellinger63;770205]

Originally Posted by Riot

What happens in 10-20 years when GDP equals or is less than our interest payment and no one but Cash-For-Gold is willing to give us money? Or will keep printing monay and a gallon of milk will cost $2K?

You don't fix that by refusing to raise the debt ceiling. Do you?

[dellinger63]

[quote=Riot;770206]

Originally Posted by dellinger63

You don't fix that by refusing to raise the debt ceiling. Do you?

If the average tax-paying American family (not the 40% of households who pay no income tax) largest problem in the household was their budget; do they go out and seek more credit cards and financing or do they make do with what they have and try and get back on their feet?

I know if the government was an average family they'd take out credit cards on all the children and babies and let them worry about it while ma and dad partied with the neighbors.

Our number one problem is the debt and now we NEED to increase it?

[Riot]

Originally Posted by dellinger63

If the average tax-paying American family (not the 40% of households who pay no income tax) largest problem in the household was their budget; do they go out and seek more credit cards and financing or do they make do with what they have and try and get back on their feet?

That's not a very accurate analogy. A more accurate analogy goes to liquidity.

Our number one problem is the debt and now we NEED to increase it?

Yes, we NEED to increase our debt ceiling, or we will harm our rating for decades into the future, and likely force the world into a recession.

Not raising the debt ceiling - defaulting on our obligations - does nothing to change the amount of our debt - it only makes it far more expensive and harder to get in the future. It will hugely increase the cost of the debt we already owe. Yeah, that's smart?

[geeker2]

Originally Posted by Riot

It does mean our credit rating is immediately and permanently impacted, and that interest rate has now skyrocketed. Let alone the impact on the world markets. Thinking there is no serious, long-term consequences is absurdly wrong.

So that's "actually, you do".

Actually it's the Debt that threatens the U.S. credit rating -just ask S&P.

So if you cut spending and stop borrowing you have a winner - so actually you don't.

[Riot]

Originally Posted by geeker2

Actually it's the Debt that threatens the U.S. credit rating -just ask S&P.

So if you cut spending and stop borrowing you have a winner - so actually you don't.

Not raising the debt ceiling isn't an action that cuts spending and borrowing, is it?

And what what type of talk has negatively influenced that recent S & P announcement? Oh, yeah - politicos yammering on about doing something completely idiotic, not raising the debt ceiling.

[geeker2]

Originally Posted by Riot

Not raising the debt ceiling isn't an action that cuts spending and borrowing, is it?

And what what type of talk has negatively influenced that recent S & P announcement? Oh, yeah - politicos yammering on about doing something completely idiotic, not raising the debt ceiling.

Actually that isn't the reason....it's the long term debt.

S&P said, “We believe there is a significant risk that congressional negotiations could result in no agreement on a medium-term fiscal strategy until after the fall 2012 congressional and presidential elections.” In such a case, the first budget that could include serious fiscal measures would be for the 2014 fiscal year, the report concluded, “and we believe a delay beyond that time is possible.”

[Riot]

Originally Posted by geeker2

Actually that isn't the reason....it's the long term debt.

S&P said, “We believe there is a significant risk that congressional negotiations could result in no agreement on a medium-term fiscal strategy until after the fall 2012 congressional and presidential elections.” In such a case, the first budget that could include serious fiscal measures would be for the 2014 fiscal year, the report concluded, “and we believe a delay beyond that time is possible.”

Yet what you quote proves my point, that yes, one of the reasons S & P (and the rest of the financial world, including our Wall Street which has warned the GOP about not effing with this for political reasons) isn't happy is our lack of serious responsibility-taking about the debt

What did you think of Tim Geithner's letter he sent to Reid in January of this year? (the link is in the Ezra Klein excerpt I posted). We would have to raise the debt ceiling to avoid default even if we never accrued one more penny of charged debt.