A Fairly Logical Path

  • conservativej...

    Posts: 2465

    Jul 31, 2011 1:18 AM GMT
    From Cnnfn:

    If lawmakers fail to raise the ceiling by Tuesday, the Treasury Department has said it will no longer be able to guarantee that it can pay all the country's bills in full and on time.

    That's because Treasury will not be taking in enough revenue to cover all the bills coming due in August. And without a debt ceiling increase, it will be prohibited from borrowing new money in the bond market to make up the difference.

    So, something will have to give.

    The consensus thinking has been that Treasury will prioritize who to pay first and who to put off. And at the top of the list of who gets paid will be investors owed interest on U.S. debt. If the investors aren't paid, that would constitute a default, which would have a host of negative consequences for the country.

    Of course, it's possible Treasury may decide it doesn't actually have the authority to prioritize and will instead pay interest owed to bond investors but pay other bills as they come due -- first come, first served, said former Treasury official Jay Powell....

    I think there will be a logical progression of events beginning sometime in the first two weeks of August, with Tuesday being a non-event day. America is long overdue for a debt downgrade with a trove of debt already out there, i.e. the $14.3 trillion or so.

    If we are ever to turn the ship of state around, we are going to have to damage one leg of revenue at least, e.g., the ability to easily borrow. One cannot squeeze blood from a turnip; and in spite of all the Democrat/Liberal huffing and puffing, they know very well increasing taxes dramatically on a minority will get them no-where long term. (Yes, we wealth holders are a minority, one that has and will "reconfigure.")

    I suggest you guys sit back and relax. You liberal folks truly are no longer in control.

  • creature

    Posts: 5197

    Jul 31, 2011 1:26 AM GMT
    You're a "wealth holder," conservativejock? You've never mentioned that before.
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    Jul 31, 2011 2:51 AM GMT
    Repeal the Bush Tax cuts for the richest, end all corporate welfare payments, reduce right offs and tax shelters for those making over a million per year, tax all wallstreet gamblers incomes same as any other income. Increase the SS threshold up to $120,000 of income rather than the current $98,000 to make it solvent. Allow states/fed Government to 'shop' for better drug deals to save Medicare/Medicaid funds, and bring in a 'Public Option" to be funded by the subscribers.

    End the two wars over the next 6 months and have all the troops home by the end of one year. Cut the Pentagon and its outposts (unnecessary bases) by 50% (even then we'd be spending more than other industrialized countries, currently we spend as much or more than the top several industrialized countries combined) End the Dept of Homeland Security (DHS) , the local/state police, FBI, CIA can learn how to cooperate without the duplication from a DHS. Place an extra tax on the Military suppliers/contractors such as Haliburton, KBR to help pay for the health care of the 25,000 injured/disabled military personel.

    Cut off free Med. Ins benefits to all of congress and senators, they can afford to pay for it themselves. End retirements for them if their private incomes are over $100,000 per year and no retirement benefits at all for service under 15 years.

    There you go !!!! This would be a hell of a good start on fixing the debt problem we have without cutting off the safety net programs for the very poor, the elderly and the middle class, and I'll bet not one rich person would have to strop driving their huge SUV's or their sportcars.