Lake Erie Conservative

thoughtful discussion(s) about issue(s)

Posts Tagged ‘United States debt ceiling’

… Banning ” Extraordinary Measures ” could reduce Default Risk [ShutDown Theatre] …

Posted by paulfromwloh on Wednesday,October 16th,2013

.. POTUS & Co are objecting to a measure that includes language  that the GOP is trying to restrict the Treasury’s ability to maneuver under the debt ceiling with a provision that could, counterintuitively, have the effect of reducing the possibility of a default in the future. House Republicans are considering legislation to raise the debt ceiling and fund the government that includes language banning the Treasury from using “extraordinary measures” to create headroom under the debt ceiling in the future.

Treasury Secretary Jack Lew has been using such measures, which include issuing IOUs to government employee retirement funds and shifting around government accounts, since the debt reached the statutory limit of $16.7 trillion in May. Lew has said that he will run out of the measures on Thursday, at which point he will be left with only cash and incoming revenues with which to pay the country’s bills.

.. His projection has been interpreted by many in the government and media as a hard deadline for avoiding a default on Treasury obligations. The actual hard deadline was May 31st , 2013 . The extraordinary measures have been used to manuveur around below the ceiling ,  since then .

.. People think that this October 17th is a hard deadline . Matter of fact , it is not . The Treasury likely has enough funds on hand to meet all its bills through October 22nd , at the earliest , or November 1st , at the latest, according to many calculations .

.. Confusion over when exactly the government faces default is hurting the Obama administration’s credibility, former Obama economic adviser Austan Goolsbee said last week. Goolsbee called it a “fuzziness problem”: The public doesn’t understand the timing of the default threat, even if they believe it’s a real threat. Removing the use of extraordinary measures might clear up that fuzziness.

.. Removing the ability of Treasury to maneuver under the debt ceiling for months at a time could mean that whatever day the Treasury hits the debt limit is a hard deadline. That, in turn, could decrease Congress’ willingness to push negotiations to the last minute.  Nevertheless, President Obama and Lew have objected to the GOP measure. Treasury officials under both Democratic and Republican presidents have used the maneuvers, and ending them would represent a transfer of power away from the executive branch.

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… No Kidding , Chris [FNC on Shutdown] …

Posted by paulfromwloh on Sunday,October 6th,2013

Although President Barack Obama has said that negotiating over the debt ceiling would be unprecedented, Fox News Sunday host Chris Wallace isn’t buying it.

[link] — video to the piece …

“The White House keeps saying, the president says this has never happened before, we’ve never had a negotiation on the debt

limit,” Wallace told POLITICO for this week’s “Turn the Table” series. “That’s bull. It just isn’t true.”
“They’ve had negotiations over the debt limit sometimes on related budget issues, sometimes on completely unrelated issues for years.”

“When you look at the dynamics of what’s going on inside the Republican caucus, I don’t think they’re there yet and ready to give anything up. And if you go out and listen to the public words of Sen. Reid and the president, there’s no give there either.”

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… Earth to POTUS : Open Your Ears ! …

Posted by paulfromwloh on Thursday,September 19th,2013

.. in a speech at the Business Roundtable , POTUS said that raising the debt ceiling does not raise the debt . Well , guess what , POTUS ?

.. [link] ..

.. Oh , yes it does , you damn fool . What do you think those $1 trillion plus deficits the last couple of years are for , you bloody idiot . The debt ceiling prevents you from doing so . Raising it allows you to continue to do so . Get with the program …

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