Yikes! Snow says debt ceiling must be raised

[Roy Munson]

Snow: US government cash running out (http://www.breitbart.com/news/2006/03/14/060314155502.5zgxciv2.html)


Snow warns Congress: US government's cash running out
Mar 14 10:55 AM US/Eastern


Treasury Secretary John Snow urged Congress to set aside partisan bickering and raise the US national debt ceiling this week, or face a disastrous cash crunch for the federal government.

In a speech here to a conference of regional bankers, Snow said it would be inconceivable for Congress not to pass legislation on the debt limit before it heads into a recess at the end of this week.



"I am urging members of Congress in the strongest possible terms to resist coupling an increase in the debt ceiling with other issues," Snow said.

"Rather, they should vote to raise the ceiling this week. It would be unthinkable for them not to take action," he said, warning that the "full faith and credit" of the US government was too precious to be compromised.

Snow has issued increasingly urgent warnings to Congress that the statutory debt limit of 8.184 trillion dollars will be hit this week, and that the government will then lose its borrowing power.

Once the US government reaches the ceiling, it comes under threat of defaulting on its debts and can lose the ability to raise future credit on the capital markets.

Last week, Snow said new issues of federal debt instruments would only raise enough cash to keep government operations financed until mid-March.

But Democratic members of Congress are said to be balking at increasing the debt limit unless the administration of President George W. Bush, which has overseen a huge rise in the US budget deficit, curbs its appetite for funds.

"We have to remember that current federal borrowing needs today are simply the product of past decisions," Snow said in his speech.

"While we always welcome a debate on budget priorities, swift action on the debt limit must still be taken this week.

"There should be no doubt over whether the government will be able to pay its bills on time, this time next week."

[Roy Munson]

Mind boggling.

[FORD]

Wouldn't you love to have Clinton back in the Oval Office right now?

Hell, I'd go recruit interns off the street to suck his dick if he could fix the horrible mess Chimpy has caused.

[Roy Munson]

Originally posted by FORD
Wouldn't you love to have Clinton back in the Oval Office right now?

Hell, I'd go recruit interns off the street to suck his dick if he could fix the horrible mess Chimpy has caused.


Calm down.

:rolleyes:

[Angel]

Originally posted by FORD
Wouldn't you love to have Clinton back in the Oval Office right now?

Hell, I'd go recruit interns off the street to suck his dick if he could fix the horrible mess Chimpy has caused.

FORD, he doesn't even need the White House. He was asked last week what perk he missed the most... ;)

After a giggle, and a short "not the obvious answer that you're thinking"...

He said he misses the work the most, and that he would be willing to live in a broom closet for 8 years if he could just do the work. :)

[Guitar Shark]

Originally posted by Roy Munson

But Democratic members of Congress are said to be balking at increasing the debt limit unless the administration of President George W. Bush, which has overseen a huge rise in the US budget deficit, curbs its appetite for funds.

"We have to remember that current federal borrowing needs today are simply the product of past decisions," Snow said in his speech.
[/B]

What a load of horseshit.

How much money have we spent on this ghastly war in Iraq?

Bush is the most fiscally irresponsible president in recent memory.

[LoungeMachine]

Originally posted by Guitar Shark
What a load of horseshit.

How much money have we spent on this ghastly war in Iraq?

Bush is the most fiscally irresponsible president in recent memory.


Recent?

Why the qualifier, counselor?


Can you cite a more fiscally reckless president in 240 years?



"Reagan proved deficits don't matter" -Dick Cheney



And remember, Iraq and it's hundreds of billions [ spent, wasted, and stolen] are OFF-BUDGET

:mad:

[FORD]

Well, his father held the previous record. But Junior makes Poppy look like.......

well, a conservative, I guess.

[Roy Munson]

Originally posted by FORD
Well, his father held the previous record. But Junior makes Poppy look like.......

well, a conservative, I guess.


That is part of the realization I am coming to: the guy I voted for is not actually a fiscal conservative. Yes, I could see it coming...I've known it for some time now, but it's hard when you want to keep rooting for the team.

[ODShowtime]

Originally posted by Roy Munson
That is part of the realization I am coming to: the guy I voted for is not actually a fiscal conservative. Yes, I could see it coming...I've known it for some time now, but it's hard when you want to keep rooting for the team.

Don't dismay, there are MANY who feel as you do.

[kentuckyklira]

Just imagine what would happen should the Chinese close down the cash flow!

[Nitro Express]

They will buy us cheap.

[Roy Munson]

Originally posted by Nitro Express
They will buy us cheap.


They already are. They're renting to own as we speak.

:(

[LoungeMachine]

Originally posted by Roy Munson
They already are. They're renting to own as we speak.

:(

Exactly:cool:

Glad to see some Contra Nuevos get it.

[blueturk]

US spends its way to 28 Eiffel towers: made out of pure gold
From Tim Reid in Washington



IF YOU are worried about how much you owe on your credit cards, this might put things in perspective: America’s national debt limit was increased yesterday to $9 trillion. That’s $9,000,000,000,000 — enough to buy Buckingham Palace 9,000 times.
The increase, passed by Congress, allows the Government to borrow another $781 billion (£447 billion), increasing the national debt limit — the maximum America can borrow — from $8 trillion and $184 billion to $8 trillion and $961 billion.



If the debt ceiling, which is set by Congress, had not been raised by March 24, the Administration would not have been able to borrow more money and the US would have begun to default on its domestic and foreign obligations, an untenable consequence.

The vote to increase the debt limit, requested by the White House, is the fourth since Mr Bush took office. In 2001 the national debt was $5.7 trillion. Today it has ballooned to $8.2 trillion, figures rarely talked about in Washington.

The national debt is the total amount owed by the Government. It is not to be confused with the federal budget deficit, which is the yearly amount by which spending exceeds revenue. When budget deficits are big, the national debt inevitably increases.

When Mr Bush took office he inherited a $236 billion budget surplus. Bill Clinton, his predecessor, had used budget surpluses to pay down some of the national debt in his last two years in office. Mr Bush also inherited some extraordinarily overoptimistic projections. Experts pronounced that budget surpluses would increase to $5.6 trillion over ten years, and there was even heady talk of paying off the entire national debt with the proceeds.

Since then a combination of factors — the September 11, 2001, attacks, unexpectedly low tax revenues, Mr Bush’s tax cuts and runaway government spending — have plunged the yearly budget back into deficit. This year it will reach nearly $400 billion.

What worries many analysts is the amount of US debt financed by foreign governments and banks, particularly in Asia. The national debt is split between publicly held debt — money owed to US and foreign investors — and money owed to branches of the Government. Nearly half the publicly owed debt is held by foreigners. Japan is the biggest creditor, at $668 billion. China, the second-biggest, recently increased its stake by $40 billion to $263 billion.

“We used to have much less held by foreigners,” Alice Rivlin, a former budget director for Mr Clinton, said. “It makes you much more vulnerable to people’s agendas.”

Historically, today’s national debt is the highest in dollar terms, but not as a percentage of GDP. In 1946 it was $270 billion — 122 per cent of GDP.

Today it is 65 per cent of GDP, very close to the postwar high of 67 per cent in 1996.

America has had a national debt since 1791, when it was $75 million. Today it rises by that amount every hour.

$9 TRILLION


Is roughly four times Britain’s GDP

Equates to $1,500 for every man, woman and child in the world

Would buy all the tea in China. In fact it would buy all the tea in the world for the next 2,000 years.


Is enough to solve the Palestinian crisis by rehousing every Israeli and Palestinian family in a £1.5m detached house in Henley-on-Thames

Would build 28 Eiffel Towers — constructed out of gold.

http://www.timesonline.co.uk/article/0,,11069-2090441,00.html