Presidential Warning on Debt Ceiling Increase

"This country now possesses the strongest credit in the world. The full consequences of a default — or even the serious prospect of default — by the United States are impossible to predict and awesome to contemplate. Denigration of the full faith and credit of the United States would have substantial effects on the domestic financial markets and the value of the dollar in exchange markets. The Nation can ill afford to allow such a result. The risks, the costs, the disruptions, and the incalculable damage lead me to but one conclusion: the Senate must pass this legislation before the Congress adjourns. I want to thank you for your immediate attention to this urgent problem and for your assistance in passing an extension of the debt ceiling."

- The President (Ronald Reagan)

And the Senate will probably adjourn.

The President continued:

"Congress consistently brings the government to the edge of default before facing its responsibility." He slammed the "this brinksmanship" because "it threatens the holders of government bonds and those who rely on Social Security and veterans benefits,"

If we go into default it's going to make the first Depression seem like a economic boom. The Rethuglicans need to get their heads out of their asses and compromise. This has to be the most asinine idiotic stunt this congress has ever pulled.

The sky is falling? you cannot be CERTAIN that it will be the worst thing to ever happen, it has never happened before. Ever heard of unintended consequences? Perhaps one of the consequences will be the end of wars, return of the troops, smaller more efficient government and freedom and liberty for all!

NoDrama said:

The sky is falling? you cannot be CERTAIN that it will be the worst thing to ever happen, it has never happened before. Ever heard of unintended consequences? Perhaps one of the consequences will be the end of wars, return of the troops, smaller more efficient government and freedom and liberty for all!

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Buy Gold, or better go mining.

golddog said:

Buy Gold, or better go mining.

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I second that.

NoDrama said:

The sky is falling? you cannot be CERTAIN that it will be the worst thing to ever happen, it has never happened before. Ever heard of unintended consequences? Perhaps one of the consequences will be the end of wars, return of the troops, smaller more efficient government and freedom and liberty for all!

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In this case, yes, the sky is falling. It will be an economic disaster.

I wish the us govt spent more time on bud size increase

Carne Seca said:

In this case, yes, the sky is falling. It will be an economic disaster.

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We will not default unless they want to do it that way-Their is no need to raise the debt ceiling to avoid default, we take in more than enough money to avoid default and keep the govt running as normal-This whole thing is a scam on we the people- they just wan't to spend and tax more and this is them trying to justify it- The whole fake debate is both partys working together to screw us.

I can't remember which channel was saying it, maybe CNN last night that said we could go from AAA rating to B+ if we default.

This has to be the most asinine idiotic stunt this congress has ever pulled.

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That's pretty bad too, considering this is likely the most unproductive congress in U.S. history... Yay obstructionism!

mame said:

I can't remember which channel was saying it, maybe CNN last night that said we could go from AAA rating to B+ if we default.

That's pretty bad too, considering this is likely the most unproductive congress in U.S. history... Yay obstructionism!

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If they default it has nothing to do with the debt ceiling.
Unless they are using it as a threat-As in-Give us more money .....or else
They do not need to raise debt ceiling to avoid default. =Fact

beardo said:

If they default it has nothing to do with the debt ceiling.
Unless they are using it as a threat-As in-Give us more money .....or else
They do not need to raise debt ceiling to avoid default. =Fact

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We have a wiener

beardo said:

If they default it has nothing to do with the debt ceiling.
Unless they are using it as a threat-As in-Give us more money .....or else
They do not need to raise debt ceiling to avoid default. =Fact

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Either default, or massive (and I mean massive, 1.5 trillion in cuts all in one year? are you insane?) cuts to meet obligations will end in economic disaster so either way it's a very very very bad idea to not raise the debt ceiling. I think you're trying to make us feel better about not raising the debt ceiling by saying we dont have to default - but does it matter? It's bad news regardless.

Not raising the debt ceiling is irresponsible and self defeating; We'd be cutting off our nose to spite our face... The fact that congressional Republicans are trying to court public opinion so they can consider not raising the debt ceiling as an option is downright dishonest IMHO - they know that nothing good can come out of this, they shouldn't be parading around as if nothing bad will happen.

Let's start with Pakistan, that's about half of it.....

then Israel, who's next, Palestine and who else do we give 100's of millions to.

I'm over it.

oh if forgot, let's get rid of all the illegal aliens in California while we are at it,

mame said:

trying to court public opinion so they can consider not raising the debt ceiling as an option is downright dishonest IMHO - they know that nothing good can come out of this.

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I would challenge this and say that raising the debt ceiling will lead to a worsening of the fundamental problem.
It may postpone some tough decisions but is making the situation exponentially worse by increasing the size and scope of the problem.
Stopping the debt increase is our only valid option and we should be implementing Massive spending cuts- to pay off the principle on our debt.

Cuts will never happen. As long as they have the power of the printing press they will just inflate the supply of money and try to let inflation take care of the debt. They really could care less if us little people suffer. As long as we vote for the next dumbass who is going to piss down our backs and tell us its raining everything will be normal..... totally fucked.

BendBrewer said:

"This country now possesses the strongest credit in the world. The full consequences of a default — or even the serious prospect of default — by the United States are impossible to predict and awesome to contemplate. Denigration of the full faith and credit of the United States would have substantial effects on the domestic financial markets and the value of the dollar in exchange markets. The Nation can ill afford to allow such a result. The risks, the costs, the disruptions, and the incalculable damage lead me to but one conclusion: the Senate must pass this legislation before the Congress adjourns. I want to thank you for your immediate attention to this urgent problem and for your assistance in passing an extension of the debt ceiling."

- The President

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Just to be clear, this was President Ronald Reagan who I quoted. The GOP Economic Mastermind raised the debt ceiling 18 times.

Again, this if from President Ronald Reagan.

beardo said:

I would challenge this and say that raising the debt ceiling will lead to a worsening of the fundamental problem.
It may postpone some tough decisions but is making the situation exponentially worse by increasing the size and scope of the problem.
Stopping the debt increase is our only valid option and we should be implementing Massive spending cuts- to pay off the principle on our debt.

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here we go beardo, once again you prove to me that you are unable to understand financial markets...

first of all, IF for some reason the US's credit rating is downgraded, we will HAVE to pay MORE to borrow money. how?? we'll have to take less money than a long term treasury note is worth b/c the required rate of return for investors gets higher as your credit rating gets lower. i'll let you figure it out. hint: google required rate of return.

not increasing the debt ceiling SOON will result in more of our money going to interest than what is happening now.

and we do not pay principal on our long term debt until the maturity date. it's the way it works. it's not like personal finance where you can pay into the principal at any time.... just saying...

you need to know the mechanics of how the system works before forming an opinion on it....

I'm no where near educated enought to get too involved in this topic. I believe every problem our nation faces is only because of 1 thing. The laboring taxpayer has no say in what goes on here today. We just sit back, work our asses off, and pay taxes so it can go to money hungry bureaucrats. Its pathetic the day we live in, our fate all lies in the hands of the most ambitious liars. Soon there will have to be a revolution or its down the toilet bowl we go