Obama - Raise Debt Ceiling Or Risk US Credit Rating

[DamianTV]

http://www.theguardian.com/world/2013/oct/08/obama-issues-fresh-debt-limit-warning-republicans

"Give us a Credit Card with a Higher Limit or else we cant use that same Credit Card to make payments on the Balance for that Credit Card". Flawed Logic is Flawed.

[69360]

Wrong Obama, Moody's says the US will not default even if the debt ceiling is not raised and will keep the AAA rating.


” We believe the government would continue to pay interest and principal on its debt even in the event that the debt limit is not raised, leaving its creditworthiness intact,” the memo says. “The debt limit restricts government expenditures to the amount of its incoming revenues; it does not prohibit the government from servicing its debt. There is no direct connection between the debt limit (actually the exhaustion of the Treasury’s extraordinary measures to raise funds) and a default.

http://www.washingtonpost.com/blogs/post-politics-live/liveblog/live-updates-the-shutdown-4/?hpid=z2#c1e3ada3-dc00-41d8-92cb-327c5c814d82

[angelatc]

Wait ... if Obama has managed to cut the deficit, which is a lefty meme ... why do we need to raise the debt ceiling again

[Zippyjuan]

They lowered the US credit rating the last time. Fom 2011:
http://articles.washingtonpost.com/2011-08-05/business/35417342_1_downgrade-aaa-credit-ratings-government-debt


Standard & Poor’s announced Friday night that it has downgraded the U.S. credit rating for the first time, dealing a symbolic blow to the world’s economic superpower in what was a sharply worded critique of the American political system.

Lowering the nation’s rating to one notch below AAA, the credit rating company said “political brinkmanship” in the debate over the debt had made the U.S. government’s ability to manage its finances “less stable, less effective and less predictable.” It said the bipartisan agreement reached this week to find at least $2.1 trillion in budget savings “fell short” of what was necessary to tame the nation’s debt over time and predicted that leaders would not be likely to achieve more savings in the future.

[Zippyjuan]

Wait ... if Obama has managed to cut the deficit, which is a lefty meme ... why do we need to raise the debt ceiling again

The deficit is the annual budget shortfall. The debt is the sum of all budget shortfalls. Only if this year's deficit is zero or a surplus will the debt not increase. If Congress passes a balanced budget (not likely) that can occur.

[jllundqu]

Wrong Obama, Moody's says the US will not default even if the debt ceiling is not raised and will keep the AAA rating.



http://www.washingtonpost.com/blogs/post-politics-live/liveblog/live-updates-the-shutdown-4/?hpid=z2#c1e3ada3-dc00-41d8-92cb-327c5c814d82

Thank yoU! I've been saying this for weeks.....

[69360]

They lowered the US credit rating the last time. Fom 2011:
http://articles.washingtonpost.com/2011-08-05/business/35417342_1_downgrade-aaa-credit-ratings-government-debt

The deficit was much larger in 2011. Since it's lower now, the spending cuts needed to avoid default are less drastic and are possible. Simply put we aren't in as deep doo doo as last time. Cut a little spending and the US won't default.

[Acala]

http://www.theguardian.com/world/2013/oct/08/obama-issues-fresh-debt-limit-warning-republicans

"Give us a Credit Card with a Higher Limit or else we cant use that same Credit Card to make payments on the Balance for that Credit Card". Flawed Logic is Flawed.

Yes. What they are implying is that they need to borrow money to service the debt. If that were true, that the only way to service the debt was to borrow more, the game would be over already.

[DamianTV]

Wrong Obama, Moody's says the US will not default even if the debt ceiling is not raised and will keep the AAA rating.



http://www.washingtonpost.com/blogs/post-politics-live/liveblog/live-updates-the-shutdown-4/?hpid=z2#c1e3ada3-dc00-41d8-92cb-327c5c814d82

I thought Moodys already downgraded the US Credit Rating to AA already?

[Zippyjuan]

The deficit was much larger in 2011. Since it's lower now, the spending cuts needed to avoid default are less drastic and are possible. Simply put we aren't in as deep doo doo as last time. Cut a little spending and the US won't default.

You would have to cut $500 billion in two weeks to avoid default. "Just a little bit". Sure they could keep paying interest on the debt but would have to default on other payments.

[DamianTV]

Or they can just Borrow Money into existence to make payments on the Money (Currency) they already Borrowed. Its a neverending cycle until the end of said Fiat Currency arrives.

[Zippyjuan]

Or they can just Borrow Money into existence to make payments on the Money (Currency) they already Borrowed. Its a neverending cycle until the end of said Fiat Currency arrives.

Debt ceiling would have to be raised before they can borrow any more money.

[DamianTV]

Debt ceiling would have to be raised before they can borrow any more money.

Exactly. And they have to raise the debt ceiling to borrow the money they need to make payments on the debt from previously borrowed money.

At Interest.

[Acala]

You would have to cut $500 billion in two weeks to avoid default. "Just a little bit". Sure they could keep paying interest on the debt but would have to default on other payments.

Eliminating programs, agencies, and deployments is not a default and would HELP the credit rating.

[Paulbot99]

I hate the Guardian. They're filled with people thinking it's the Republicans holding the country hostage when they refuse to raise the DEBT ceiling. If I ever have kids, I hope I teach them better than to whine to others about me holding their life hostage by refusing to let them get a second credit card to pay off the debts on their first credit car. Of course, if I teach them right, they wouldn't be in debt in the first place.

Wait... Public schooling will be mandatory then? Ah, fuck...

[DamianTV]

I hate the Guardian. They're filled with people thinking it's the Republicans holding the country hostage when they refuse to raise the DEBT ceiling. If I ever have kids, I hope I teach them better than to whine to others about me holding their life hostage by refusing to let them get a second credit card to pay off the debts on their first credit car. Of course, if I teach them right, they wouldn't be in debt in the first place.

Wait... Public schooling will be mandatory then? Ah, fuck...

I still posted it because I know that the people here can see right through the BS of MSM. Story is Biased definitely, but it wasnt the point.

[Acala]

Exactly. And they have to raise the debt ceiling to borrow the money they need to make payments on the debt from previously borrowed money.

At Interest.

What could possibly go wrong? Only an anarchist wackobird could oppose such a common sense fiscal operating plan.

[Paulbot99]

I still posted it because I know that the people here can see right through the BS of MSM. Story is Biased definitely, but it wasnt the point.

That's true. Thanks for the article. :)

[Origanalist]

I hate the Guardian. They're filled with people thinking it's the Republicans holding the country hostage when they refuse to raise the DEBT ceiling. If I ever have kids, I hope I teach them better than to whine to others about me holding their life hostage by refusing to let them get a second credit card to pay off the debts on their first credit car. Of course, if I teach them right, they wouldn't be in debt in the first place.

Wait... Public schooling will be mandatory then? Ah, fuck...

Except the Guardian posts news that never sees the light of day here.