[Unknown Target]

Basically, the democrats and republicans need to produce a budget bill for the next year of the government’s operations. if there is no bill, there is no budget, there is no *official* appropriation of money. not only that, but abroad, the world’s finances hang at once by a thread and at second by a metal chain. The world standards organization is threatening the US with a downgrade of their debt, which would drastically reduce the US’s purchasing power. this vacuum in an unstable and still shoddy economy put up by those who may wish to see personal profit as public, would most likely be the first card to fall in this tower of commerce. The world could drastically change, I mean really change, within a very short timespan. I jest not when I say I wonder just whether or not I am partaking in exagerration in my explanation.

Or as a certain kinetically gifted muffin explained:

“when the guys on top topple over the people on the bottom will start to think for themselves”


Please, discuss.

[achtung]

The debt limit will be lifted. It seems to be the biggest hurdle I keep hearing about.

This is all a show so the republicans can look "tough on debt."

[LordPomposity]

Yep, this is all a dog-and-pony show. The Republicans will drag their heels and piss and moan, but they will pass that bill. Wall Street doesn't want the financial disaster that a default would create, and the Republicans know who foots the bill for their re-election campaigns.

[Kosh]

Yep, this is all a dog-and-pony show. The Republicans will drag their heels and piss and moan, but they will pass that bill. Wall Street doesn't want the financial disaster that a default would create, and the Republicans know who foots the bill for their re-election campaigns.

That maybe so but out of control debts and deficits is a serious problem.

[StarSlayer]

I have my alarm clock set to NPR and as I clawed my way towards consciousness this morning I heard something that had caused me to spontaneously declare WTF?

As most of you know the US gov't is hurtling toward a deadline where they much raise the debt ceiling or the entire system and the economy along with it face plants into concrete like an uncoordinated skateboarder on a grind rail.  Now the Reps and Dems have been hemming and hawing about the issue and dragging their heals.  My understanding was that the Dems where pushing for budget cuts and some tax increases, whereas the Reps wanted just budget cuts no change in the tax structure.  Which I figure is business as usual, once they get done with the dog and pony show they'll come to an agreement.  So fast forward to this morning I here that instead the Reps have decided to propose a deal where they allow Obama to raise the debt ceiling sans congress...

So wait wut?  If I understand this correctly, they're basically going to forgo dealing with any budget changes or tax adjustments and just raise the debt ceiling?

What the ****?

[Luis Dias]

strategy. 2012. Obama responsible to do what they will inevitably do anyways. Obama responsible for the HUUUUGE DEFICIT. Must be thrown out, the muslim infiltrator, him. And sent to Gitmo.

[Thaeris]

Obvious trolling is obvious. It's also not all that amusing.

[Luis Dias]

I'm not trolling. I was actually being serious, if you can believe me. Only the tone was "funny".

[Dragon]

Keep in mind, Obama had to deal with the economic crisis, caused by american bankers not knowing what they're doing. Financial problems were unavoidable.

[Thaeris]

That's indeed the nature of debts. The guy in the present is blamed for the shortcomings of the guy in the past.

[Luis Dias]

Look, I did not say that Obama is to blame. I said "Strategy". Republicans are smart politicians. They know that the onus is on them. If the Reps can't bring themselves to accept the ceiling being higher, the whole country falls down and its *their fault*. Too ****ing risky.

So what do they do instead? They cut the losses and plan for the future. Give what appears to be a solution but it is filled with poison. They give Obama the power to lift the ceiling himself, so that the action now resides on Obama. Fox news will be all over "Obamaroof" and the all-too common democrats will to "spend money as the incompetents they are". There are elections next year and Reps will use this as election fodder.

IOW, they know this is inevitable, but they don't want to press the red button. They want Obama to press it.

[Dragon]

Eh. Blasted political games. As if they couldn't all get together and think off a reasonable solution.
On the other hand, this is pretty civilized compared to what's happening in some other countries... namely the one I live in...

[Luis Dias]

As if they couldn't all get together and think off a reasonable solution.

BAHAHAHAHAHAHAHAHH!

[Dragon]

Wishfull thinking aside (snow will fall on the equator before politicans will actually stop arguing and gather to do something for thier country), somebody should really try to ensure US will not go bankrupt when they're arguing. As we've seen about a year ago, when US sneezes, the entire world has to wipe it's nose.

[Mars]

I kind of hope that the federal government collapses . . .

[SpardaSon21]

The U.S. will not go bankrupt if the debt ceiling gets raised.  The debt ceiling is a cap on borrowing, not spending, so Congress will still have the ability to spend money.  They'll just have to be careful where they get it since borrowing it from China won't be an option anymore.  Continuous deficit spending leading to a consistently rising debt ceiling isn't exactly wise monetary policy in the first place, anyways.

[Unknown Target]

They would be able to spend money but the amount of money they could spend would be drastically reduced.

Which, tbh, probably wouldn't necessarily be a bad thing; they would exert less informal control over the country as a whole.

[Flipside]

http://www.moodys.com/research/Moodys-Places-US-Aaa-Government-Bond-Rating-and-Related-Ratings?lang=en&cy=global&docid=PR_221800

Moodys to review possible downgrading of US credit rating.

Edit: The site is pretty busy.. BBC Coverage here :

http://www.bbc.co.uk/news/business-14142621

[Unknown Target]

Man, those rating agencies sure hold a lot of power over countries that are supposed to be of the people, for the people, etc...

[NGTM-1R]

Yes, clearly we should have some kind of anarchic system that could only be enforced by the threat of violence.