Moody's offers different view on debt limit

Discussion in 'Too Hot for Swamp Gas' started by G8trGr8t, Oct 9, 2013.

  1. G8trGr8t
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    G8trGr8t Premium Member

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    http://www.washingtonpost.com/blogs...wn-4/?id=c1e3ada3-dc00-41d8-92cb-327c5c814d82

    things that make you go hmmmm

    and for those screaming about how the last push to the edge hurt our credit rating it wasn't the possibility of the debt limit not being increased it was the out of control spending that hurt the credit rating and this Moody's assessment just confirms that
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  2. diehardgator1
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    diehardgator1 Well-Known Member

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    now you are saying obama and his liberals dem are lying Gee who would have thought they would do that
  3. philobeddoe
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    philobeddoe Well-Known Member

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    Hell ... the feds could just accrue the interest - don't pay and book the liability - and offer holders warrants for some series XXX cumulative convertible redeemable participating preferred shares ..... for agreeing to deferring the payment!!!!!

    Oh wait ...........................
  4. DieAGator
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    DieAGator Well-Known Member

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    Who among us doesn't believe Obama and policymakers know that? Obama's "America will not default on its debt" are the words of a man trying to put the country further in debt. That's all.
  5. dadx4
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    dadx4 Well-Known Member

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    Aren't we paying almost a TRILLION per year just in interest now on our debt?
  6. demosthenes
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    demosthenes Well-Known Member

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    400-500 billion.
  7. 92gator
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    92gator Well-Known Member

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    good find. thanks for posting.
  8. G8trGr8t
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    just think how much good that $500B could be doing if spent on infrastructure improvements instead of interest or if there was $500B less in taxes so people could keep more of what they earn. $500B in the hands of private sector being spent and/or invested isntead of paying interest on money that should not have been spent to begin with would be quite the economic stimulus

    what will the payment be when the interest rate gets to 7%?
  9. gatornana
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    gatornana Administrator

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    Limiting spending to only incoming revenue in event of default sounds like there would be some serious repercussions......in comparison, the current shutdown would be like a walk in the park. I hope this isn't correct.
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  10. fubar1
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    fubar1 Premium Member

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    This is what free spending "progressives" fail to realize: the interest on our national debt is at an all-time low…1-3% due to low interest rates (caused by the Fed's massively expanding balance sheet). Interest rates will go even higher, causing that $500B of interest payments to balloon into a much higher number, even if we don't borrow another dime. This will squeeze the federal budget, requiring more of tax revenue to pay for increasing interest.

    The bond market has already given Bernanke the finger as evidenced by a 100 basis point increase in rates…and it'll be another 100-200 points before it's all over. But no, let's just keep increasing the debt limit and act like drunken sailors.

    Nothing to see here…nothing at all.
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  11. G8trGr8t
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    G8trGr8t Premium Member

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    yes, once the bond vigilantes get tired of Ben printing the numbers are going to explode.

    that will be a crisis that will make the 2006 meltdown look like a picnic and makes me wonder what lengths the gubmnt will go to so they can keep paying the debt and keep the entitlements funded. the us will lose their status as the world's reserve currency and the US will be changed forever, and not in a good way.
  12. 95Gator
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    95Gator Well-Known Member

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    Oh, well that I guess everything is alright then. What is anyone worried about?

    Sigh
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  13. philobeddoe
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    philobeddoe Well-Known Member

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    So true, rep fo' you.

    It is simply horrifying that some, maybe most, of the left do not understand this issue .... and the rest just don't care as they want to drive what's left of the US free market "off the cliff". These folks are just waiting on an all controlling socialist central government that will take care of their needs and wants.
  14. g8trjax
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    g8trjax Well-Known Member

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    Not raising the debt ceiling is absolutely a catastrophe, for all those scumbags in DC wanting to keep their power and the status quo.
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  15. philobeddoe
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    philobeddoe Well-Known Member

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    I'm not against increasing the debt ceiling .... but I oppose raising it without any concessions by the left .... where they agree to begin to act in a reasonable and rational fashion - ie agree to entitlement reforms, delay of Barrycare individual mandate, simplification of the tax code, enforce immigration laws (eg arrest and deport illegals regardless of circumstance), address fraud in social programs, eliminate social program benefits to non-citizens, etc). It's time all lefties (and some on the right) begin to act as if they are Americans.
  16. MichiGator2002
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    So apparently Jack Lew is out there saying any expenditure that isn't met is default, an obvious lie and/or pitch to the dumb masses who don't understand the nature of debt and debt service, and also lying that there is no way to prioritize spending, including debt service. A load of horsecrap, of course, no reasonable person could disagree that the sovereign debt is prioritized right there in the constitution. After that, we know social security is a special snowflake because of the law that let them pillage, raid, and waste the money years back. So all this handwringing about impoundment and what can and can't be spent? A law-abiding and legitimate administration can only stress over that after the debt service is paid and after SS checks are out.

    Lew's public lies, his characterization of the House of Representatives as a "little part" of government (actually the de facto centerpiece), have me craving we go to the debt limit. It is time to find out whether we are still actually a nation of laws under the Constitution or whether we are in totalitarian dictatorship. For clarity if nothing else.
  17. 92gator
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    92gator Well-Known Member

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    Why was reigning in the debt such an urgency to the Left when W. was in office, and we had 1/3 the debt we have now, but now that Barry and the dummy-rats are in power...

    ...the urgency is to spend...

    MORE, MORE, EVER MORE!!!

    :zombie:
  18. 92gator
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    92gator Well-Known Member

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    ^^^I should clarify--the *urgency* to reign in the debt, was up until the dummy-rats took control of the House, after the '06 [lameduck] midterms.

    That's when the debt stopped being a concern at all, for the dummy-rats.
  19. LabraGator
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    I don't know his take on the debt issue, but I do know he needs more carries.
  20. BigCroc
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    BigCroc Premium Member

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    Why should the concessions just be from "the left"? And while I'm all for simplification of the tax code, how is that (or deportation of illegals regardless of circumstance) related to increasing the debt ceiling?

    Sounds like you just want to force concessions that you couldn't get by straight legislative action through holding the debt ceiling increase hostage. That's not a way I think our government should function.
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