Holy *&%^.

[fan_since79]

Agreed. FS79 isn't stupid enough to believe what he wrote. He's trolling.

 

You guys are too quick. I edited my post almost immediately. If Jack Lew doesn't make the interest payment and we default, the blame's on him. By extension one could blame his boss, the president.

 

I don't believe this scenario will happen, though. It's unthinkable that we would default on our debt. We've never defaulted on even a penny in our entire history. All the default talk is brinksmanship, an elaborate game of chicken. Both sides are looking for what they always want, a political advantage. The welfare of the country is not even on their radar screens.

Edited October 15, 2013 by fan_since79

[Jay]

GOP tactics suck, but unfortunately they are the only thing standing between us and Democrat rule.

[fan_since79]

November 1st seems to be the day that a large chunk of payments are due that the Treasury will not be able to afford.

 

They WILL be able to afford it. At least $30 billion comes rolling in each day to the Treasury in tax receipts. They just have to prioritize until this "crisis" passes and the politicians get their act together.

[RallyMo]

You have missed the point completely.  Numerous parties have done idiotic things to bring us to the point where we are at today.  Including the above video.  How can you blame on person when multiple parties will have participated in all the steps necessary to get us to this point?  It is not logical.

 

Occam's razor says FS79 is Mr. Troll.

[Amazing Larry]

Another thing that we can't afford is the payments on our debt once interest rates normalize. The Fed doesn't want to let that happen so they keep buying bonds at $80 billion a month adding further to the debt.

 

It's a vicious cycle. Default is inevitable. It's a question of when not if.

[Adam]

Wait. Didn't Red say are debt was fake?

[Amazing Larry]

You guys are too quick. I edited my post almost immediately. If Jack Lew doesn't make the interest payment and we default, the blame's on him. By extension one could blame his boss, the president.

 

I don't believe this scenario will happen, though. It's unthinkable that we would default on our debt. We've never defaulted on even a penny in our entire history. All the default talk is brinksmanship, an elaborate game of chicken. Both sides are looking for what they always want, a political advantage. The welfare of the country is not even on their radar screens.

 

It's a certainty.

[fan_since79]

The federal website has been a disaster, it would have been all over the news every day. In fact many people think that the reason why the website sucks is because the government is shut down. By the time this thing is over, the website might actually be functional.

 

They spent $600 million dollars on this website and it doesn't work. The government needs to get a refund from the software company.

 

And how can a website cost $600 million??? That doesn't seem right.

[Amazing Larry]

Wait. Didn't Red say are debt was fake?

 

I know that he said income taxes are voluntary.

 

[fan_since79]

Occam's razor says FS79 is Mr. Troll.

 

I'm glad I could help you have some fun and brighten your day.

[Adam]

They spent $600 million dollars on this website and it doesn't work. The government needs to get a refund from the software company.

 

And how can a website cost $600 million??? That doesn't seem right.

 

Well, when the developer is owed a favor...

[Blarg]

GOP tactics suck, but unfortunately they are the only thing standing between us and Democratic rule.

 

Spelling fixed.

[Amazing Larry]

They WILL be able to afford it. At least $30 billion comes rolling in each day to the Treasury in tax receipts. They just have to prioritize until this "crisis" passes and the politicians get their act together.

Although the treasury can prioritize payments to bondholders and avoid a "technical default", many on Wall Street see this as being a default anyway and interest rates on bonds will adjust accordingly.

[Caralho]

You know why interest rates are so low? Because the market is willing to pay those low rates. But let's hasten our demise because 75 year projections don't look great. 

[TobiasFunke]

You guys are too quick. I edited my post almost immediately. If Jack Lew doesn't make the interest payment and we default, the blame's on him. By extension one could blame his boss, the president.

 

 

You still have to keep that asterisk in there just to attach Obama to this don't ya?

[fan_since79]

You still have to keep that asterisk in there just to attach Obama to this don't ya?

It's a matter of fact that the Treasury secretary serves at the pleasure of the president. All Cabinet officers do. Obama has the authority to make Lew pay the interest on the debt.

[Caralho]

"It's pretty hard to go home and say I shut the gov down for 2 weeks to get a 2yr delay on the medical devices tax" - Michael Burgess, R-Texas. But a few people here actually think it's both sides that shut down the government.

[Amazing Larry]

You know why interest rates are so low? Because the market is willing to pay those low rates. But let's hasten our demise because 75 year projections don't look great. 

 

The reason interest rates are so low is because this country has a central bank that buys a huge amount of it's own debt via bond purchases. If there wasn't a Federal Reserve there wouldn't be an extravagant amount of debt and we wouldn't be in this mess.

[Caralho]

Yes because things were so much better around World War I. And you do realize that bond buyers could have just ignored the Fed's bond buying and requested higher rates but they didn't because they feel it's a good investment. 

[Caralho]

http://talkingpointsmemo.com/livewire/report-house-gop-considers-passing-bill-then-leaving-town

 

The House GOP's plan sounds like leaving a bag of flaming dog poo on the White House steps and running away. Those ****ing ****s.

[Amazing Larry]

Yes because things were so much better around World War I. And you do realize that bond buyers could have just ignored the Fed's bond buying and requested higher rates but they didn't because they feel it's a good investment. 

How so?

 

The Fed was created before WW1 btw.

[Caralho]

How? Simple, don't buy bonds. 

[Amazing Larry]

Yes that is correct but the general sentiment is that there is no way that the Fed can quit purchasing bonds. The very mention of "tapering" their purchases caused a spike in rates a month ago so they didn't do it.

 

The Federal Reserve cannot quit buying bonds. They've backed themselves into a corner. If they do, the bond market collapses.

[Caralho]

I am not talking about the Fed in that case, I am talking about investors.

[Amazing Larry]

Investors are only buying bonds because they know the Fed is backing them with their own purchases. The only problem is that it creates a huge debt spiral.