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The Economic Fireworks Are Set To Start In November As Well As Celestial Cosmic Fireworks: The Sun Goes Dim & Changes A Bluish Color And Sirius The Dog Star Will Outburst!
The Debt Ceiling Deadline Is Now November 5 (The Government Knows That Economic Chaos Will Start Around This Time And The Possible Initial Start Of Our Awakening And Opening Of The 3rd Eye/Heart/Soul, The Blessed 1,335 Days Prophecy Fortold In The Book Of Daniel 12:12 Around November 21st or 22nd 2015. The Final 3 Months Of 2015 Is Shaping Up To Be Very Prophetic Indeed!)
Congress may have averted a government shutdown until December 11, but lawmakers will be under the gun to raise or suspend the debt ceiling long before then.
Treasury Secretary Jack Lew said Thursday he now estimates that “on or about” November 5, Treasury is likely to exhaust special accounting measures that are keeping the country’s debt below its legal limit.
At that point, the Treasury Department would only be able to pay the country’s bills with the cash it has on hand — which Lew expects to be roughly $30 billion.
And that would not be enough to cover the bills on some days, which can amount to $60 billion.
“We anticipate that our remaining cash would be depleted quickly,” Lew wrote in a letter to House Speaker John Boehner.
Lew stressed if that happens, it would be the first time in the country’s history that the United States could not meet all of its obligations.
“There is no way to predict the catastrophic damage that default would have on our economy and global financial markets,” he added.
Related: Key Senate Republican wants major fiscal deal
Here’s what he’s talking about: To pay bills and benefits in full and on time, Treasury borrows money to make up the difference between what it spends and what it takes in.
If Congress doesn’t act in time to raise or suspend the nation’s borrowing limit, currently set at $18.113 trillion, Treasury will not be able to borrow to fulfill all its payment obligations.
The fallout from that is unknown, but it could be very harmful.
Most experts think Treasury would do all it could to prioritize interest payments on the country’s debt, lest the United States default on its bonds, since that would likely send markets plunging and interest rates soaring.
But it’s not clear how investors would respond if Treasury makes interest payments but delays payments to government contractors, federal workers, taxpayers due refunds, veterans, seniors and anyone else to whom the federal government has a legal obligation.
Related: 7 things you need to know about the debt ceiling
November 5 is just a few days after House Speaker Boehner will retire from Congress, a move he announced unexpectedly last Friday.
Boehner’s departure complicates the process of the budget and debt ceiling negotiations ahead. Conservative lawmakers have cheered Boehner’s departure, and some may now push even harder for the spending cuts that they’ve wanted in exchange for their votes to raise or suspend the debt ceiling.
Or it’s possible that Boehner may try to tie a bow on it before he leaves. Bipartisan congressional leaders have been in discussions about putting together a long-term funding bill that could also raise the debt ceiling through the 2016 presidential election.
The absolute-drop-dead-date on the debt ceiling – sometimes called the “X” date – is the day when Treasury runs out of cash after it exhausts its special accounting measures. That day could come between mid- and late-November, according to the Bipartisan Policy Center, which has had a good track record of making such estimates.
All estimates – including Lew’s – are inherently uncertain given how variable Treasury’s inflows and outflows can be on any given day. That’s why the longer Congress waits to make a decision, the greater the risk it runs that Treasury will be caught short and have to default on a payment.
– CNN’s Deirdre Walsh and Manu Raju contributed to this story.
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Comments
James Gherson 5 days ago
This could get interesting, The Market is already trying to claw it’s way back up a slippery slope; and failing at it. China’s FINALLY woke up and smelled the coffee ( not to mention, DUMPING a large chunk of their U.S. Treasuries ) Deflation is beginning in Europe. Oil continues to slide in price. Interest rates haven’t been raised yet ( and maybe, never will ).
I’ll be on top of my hill, growing my own food, burning wood in my stove and LAUGHING…….. while it falls apart.
Have fun with that.
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iceload9 7 days ago
Maybe if we started to pay for things we would understand their cost.
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Mark English 7 days ago
We need to drastically cut spending yesterday…
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DustinG 7 days ago
@Mark English
… which would lead to deflation and recession.
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lax1 7 days ago
@DustinG @Mark English Exactly! No pain, no gain. It’s the “p” that leads to the “g”.
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Dcoronata 7 days ago
@lax1 @DustinG @Mark English So what will we be gaining after we’ve had deflation and recession?
If the “gain” is a repeat of the Panic of 1837, I don’t think we want to see that.
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Mark English 7 days ago
Doubt it
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Dcoronata 7 days ago
@Mark English We did cut spending drastically 5 years ago.
Spending in FY 2009 was greater than FY2014 and when the data comes out soon it’ll be on par with FY 2015. When did this nation ever have a six-year period where we had no spending increase, while we also had inflation and considerable gains in population, especially retirees?
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Mark English 7 days ago
Not enough
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NottaDroid 7 days ago
Welcome to another stunning episode of Kick the Can.
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DustinG 7 days ago
@NottaDroid
Considering that we are not seeing much in the way of inflation and in fact are seeing signs of deflation there is zero harm in raising the debt limit.
Also the debt limit is raised to cover spending that as already been passed by Congress. Why spend the money then decide to withhold the funding to pay for it?
That makes no sense at all.
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antiobama778 7 days ago
Cut the debt in half and make that the new ceiling then legislate later to reach it! That would cut the debt in half inflated by thousands of percent by the democrat party having control of making the laws and financing them over the last 70 years 90% of the time shoving pork out like they owned it!
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DustinG 7 days ago
@antiobama778
If you want to cut the debt in half, the first thing Congress would have to do is pass a law forcing people to cash in their Treasury Bills. It would also mean they would have to restrict the sale of new T-Bills.
Since Treasury Bills are considered by everyone of being the safest investment on the planet and the place you would put your money if someone did something this reckless the result would be chaos.
Then of course the massive reduction would force the most sever recession we have ever seen, making the Great Depression seem like a mild correction.
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Subsound 7 days ago
Another punt by the GOP instead of raising taxes. Like they did with gas taxes too. Boehner spent years saying they had a task force looking into it, never found anything to do, and left in disgrace. How long, and how many people need to suffer, before we actually get real in doing something?
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forestoak 7 days ago
@Subsound @Subsound Why should we raise taxes? We already have higher than average revenues? And if you are talking about task forces and then doing nothing, Obama is the master at them. Just how many committees did he create (jobs, deficit, etc.) and then avoid their advice.Edit (in 5 minutes)
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Subsound 7 days ago
@forestoak @Subsound Are you making a point or just JAQing off?
If you are making a point you better have some data.
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forestoak 7 days ago
@Subsound @forestoak Will you actually look at the evidence? From most of your posts it looks like you try to avoid that.
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Subsound 7 days ago
@forestoak @Subsound This is the first link to data you have ever provided. How can one avoid what has never existed nimrod?
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forestoak 7 days ago
@Subsound @forestoak No, I provide evidence whenever people ask.
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forestoak 7 days ago
@Subsound @forestoak http://www.taxpol icycenter.org/taxfacts/displayafact.cfm?Docid=205
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DustinG 7 days ago
@forestoak
How many times has Congress ignored jobs bills the President has sent up the Hill?
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Dcoronata 7 days ago
@forestoak @Subsound Kindly support your “higher than average revenues” claim.
Average over last 30 years, 17.31% of GDP.
Average over last 5 years, 15.83%.
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forestoak 7 days ago
Congress needs to get back to separate funding bills and stop with these massive budgets and continuing resolution. We need to be able to debate the issues without putting the entire government in jeopardy.
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Subsound 7 days ago
@forestoak We should, maybe you can make that point with the GOP. First it was the Bush’s tax breaks for the rich, then it was the ACA, now it’s planned parenthood…it’s like governing with a group of angry toddlers.
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forestoak 7 days ago
@Subsound @forestoak Be honest and at least admit that the Bush tax cuts were for everyone. And yes, we should get back to that point. Right now, democrats do not have to compromise and they haven’t been compromising on anything because they know that republicans will cave.
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Subsound 7 days ago
@forestoak @Subsound The ones for the rich were repealed, leading to a budget slowdown. Keep up with reality please and the conversation.
Your idea of compromise seems to be to do whatever the GOP wants, capitulate and not care other the other side is. That’s not compromise, it’s terrorism. Do what they want or they will destroy the country.
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forestoak 7 days ago
@Subsound @forestoak So then the GOP were not fighting for tax cuts for the rich. They were fighting not to increase taxes on the rich. No, my idea of compromise is two parties getting in a room and negotiating. The democrat version is like a Dictator and everyone must agree with them. Time and time again the republicans have compromised while democrats stood strong.
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Subsound 7 days ago
@forestoak @Subsound That’s all a total lie. The cuts were what Bush made to Clinton’s rate, so it was a temporary tax cut that had an expiry clause in the bill. This isn’t in question, this is easily seen in the text of the bill and discussions.
Are you mentally disabled? Seriously, no joke…I am beginning to feel like I am arguing with a dog. The dog doesn’t understand what I am saying so it’s not only not productive…all you do is get angry at the dog.
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forestoak 7 days ago
@Subsound @forestoak We are really only disagreeing about the semantics. Tell me though. Am I telling the truth. Would the taxes on the wealthy have been lower than they would have the year before? No. We were fighting for the status quo and to keep the rates at the current rate. Obama did not want to keep the current rate. Instead, he wanted the current rate to increase. You can play around with the words all you want but the fact remains, that the republicans wanted the rate to stay the same, while Obama and the democrats wanted the rate to increase.
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Dcoronata 7 days ago
@Subsound @forestoak They never remember that 10 year limit, do they?
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Dcoronata 7 days ago
@forestoak @Subsound Okay, here’s where you are incorrect.
Bush was unable to get his budget passed through normal routes, he had to go through the reconciliation process. Because of that the tax cuts were TEMPORARY, limited to ten years.
So how are they “raising” taxes when THE LAW SAID THEY HAD TO GO BACK UP?
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antiobama778 7 days ago
@forestoak @Subsound Yes your right because the RNC and representatives are mealy mouthed cowards atm. The DNC has run the government for 70 years until now owning both houses of congress for that time making all the bills, passing all the bills and financing all that pork with every single democrat president . With a republican president except with Reagan they just waited until the president was out of office and now a democrat again they passed all the bills through him! Not a democrat pork bill has been lost! When Reid was speaker he shelved every single republican bill so they never came up for vote and the press only showed democrats doing anything! That’s the way your government has been working for 70 years now!
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Republicant5 7 days ago
@Subsound We voted for those angry toddlers
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Concerned122 7 days ago
So the GOP controlled Congress cannot pass a budget. All they can do is hold hearings on Benghazi and Planned Parent Hood. The last budge they passed did not fully fund the government so we have had to borrow money to make up the difference. Now the artificial construct of a debt ceiling has been reached and they want domestic spending cut, taxes for corporations cut, military spending increased or they will burn our nation to the ground. Well people, we got exactly what we voted for.
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mij 7 days ago
@Concerned122 Yeah, you know like one eyed Harry Reid did for 4 years, no budget remember? Or do you have a memory like pops ,theghung fu
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Studypeople 7 days ago
@mij @Concerned122 But you complained about Reid not producing one… Was that another False Outrage? Or can’t your folks do the job either?
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mij 7 days ago
@Studypeople @mij @Concerned122 If it works for you it works for me.
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Studypeople 7 days ago
@mij @Studypeople @Concerned122 Not for me…Pay the bill and build a Great Nation instead of Starving our Nation.
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mij 7 days ago
@Studypeople @mij @Concerned122 where were you 4,5,6 years ago?
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Studypeople 7 days ago
@mij @Studypeople @Concerned122 Why do you ask? I was enjoying a fun Recession as a small business owner due to Deregulating…. OOOOO… And this year… I finally paid off all my bills… You?
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forestoak 7 days ago
@Studypeople @mij @Concerned122 We already have enough revenue to pay for a great nation. Now we simply need to figure out how to spend that money more wisely.
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Studypeople 7 days ago
@forestoak @Studypeople @mij @Concerned122 I say you are wrong… “Treasury Secretary Jack Lew said Thursday he now estimates that “on or about” November 5, Treasury is likely to exhaust special accounting measures that are keeping the country’s debt below its legal limit.
At that point, the Treasury Department would only be able to pay the country’s bills with the cash it has on hand — which Lew expects to be roughly $30 billion.” CNN
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Subsound 7 days ago
@Studypeople @forestoak @mij @Concerned122 Everyone so far has pointed out this guys opinions, based in nothing but gas and hope, are wrong.
Ask for facts and see how much he dodges and weaves.
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forestoak 7 days ago
@Subsound @Studypeople @forestoak @mij @Concerned122 Simply ask for facts. However, this discussion has nothing to do with facts. It is simple logic. Hopefully you can understand that. There are two ways to make a budget balance.
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forestoak 7 days ago
@Studypeople @forestoak @mij @Concerned122 And how does that make me wrong? Wouldn’t we have enough fund to pay the bills if we had less of them? Like I said, spend more wisely. There are plenty of doctors who go bankrupt even though they are making $20K a month.
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Studypeople 7 days ago
@forestoak @Studypeople @mij @Concerned122 Everything our Government is spending on is due to a law. If the Debt is rising… That means Congress is not raising enough revenue/Taxes to pay for those laws/programs.. That is wrong.
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forestoak 7 days ago
@Studypeople @forestoak @mij @Concerned122 I completely agree that is wrong………which is why you write those laws properly so that you limit the spending to the revenues you take in.
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Studypeople 7 days ago
@forestoak @Studypeople @mij @Concerned122 Raise taxes and pay for what was legally put into law… Don’t like a program… Vote it out. But not paying for something is wrong.. And cutting funding is wrong…
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forestoak 7 days ago
@Studypeople @forestoak @mij @Concerned122 And that is exactly what we are trying to do. We are trying to cut the spending (actually, we are not even cutting the programs we are simply increasing them by a smaller amount).
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Studypeople 7 days ago
@forestoak @Studypeople @mij @Concerned122 A program to work correctly will need to keep up with inflation… Increase funding due to inflation. Heck… Our Roads, Bridges, etc. is a great example of cutting funding.. But keeping the program…. They are failing.
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forestoak 7 days ago
@Studypeople @forestoak @mij @Concerned122 True, but if inflation is 3% and the program asks for a 6% increase and republicans want spending cuts and cut it to a 4% growth is that a cut?
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Studypeople 7 days ago
@forestoak @Studypeople @mij @Concerned122 Did they get an increase every year… To keep a War Plane flying they will need an inflation increase every year…
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forestoak 7 days ago
@Studypeople @forestoak @mij @Concerned122 Most of the time they did get increases. You also have to look at long term growth as well. Lets say that a program grows at 10% a year for a decade, which is much faster than inflation. Then republicans want to cut the program back so that it was really only an 8% growth every year. Is that a cut?
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Studypeople 7 days ago
@forestoak @Studypeople @mij @Concerned122 Then why are our Schools under funded…And the roads are turning into dust? We’re they fully funded?
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forestoak 7 days ago
@Studypeople @forestoak @mij @Concerned122 Are schools underfunded? We pay more per pupil than any other country and we also have increased funding much faster than inflation over the past 40 years. Why are roads and bridges crumbling if we are receiving more tax revenue now than when we built those roads and bridges? Like I said, we need to cut programs to pay for those things that are important.
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Studypeople 7 days ago
@forestoak @Studypeople @mij @Concerned122 You keep looking back and saying…. Well it cost $100 in the ’60′s… So it should cost $175 today. Not accounting for inflation or a population growth….
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forestoak 7 days ago
@Studypeople @forestoak @mij @Concerned122 You should understand that I always account for those things. I would be a complete mo.ron. not to account for them. Yes, our per pupil expense (accounting for both population increase and inflation) has grown much faster than inflation over the past 40 years.
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Studypeople 7 days ago
@forestoak @Studypeople @mij @Concerned122 Don’t talk to me about spending… The GOP in 2001 bought the F-35 for $700 Billion… F-22 was just coming on line… But today with the F-35 being deployed… It’s $200 Billion over budget..$900 Billion…. And will cost $1 Trillion to keep flying for the next 10 years…. Has anyone raised taxes to pay for it? NO! We’ll just cut Food Stamps…. I get it..
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forestoak 7 days ago
@Studypeople @forestoak @mij @Concerned122 I have never said that the GOP are the best examples of a fiscal conservative. Bush was dreadful. That is why so many conservatives are fed up with our politicians and why congress has such low ratings. To be fair, food stamps saw a 100% increase in just for years and we wanted to cut that back to a 90% increase. That isn’t what you would call dreadful.
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Studypeople 7 days ago
@forestoak @Studypeople @mij @Concerned122 That was during a Recession…. Amazing..
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forestoak 7 days ago
@Studypeople @forestoak @mij @Concerned122 It may have been necessary during the recession, but doesn’t it make sense to cut it back some during the recovery?
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Studypeople 7 days ago
@forestoak @Studypeople @mij @Concerned122 A recovery is still not a healthy ecomony
….
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forestoak 7 days ago
@Studypeople @forestoak @mij @Concerned122
here is the link per pupil spending. The third column adjusts for inflation.
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Studypeople 7 days ago
@forestoak @Studypeople @mij @Concerned122 But our schools are over 50 years old.
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Dcoronata 7 days ago
@forestoak @Studypeople @mij @Concerned122 ” Beginning in 1980-81, state administration expenditures are excluded from both “total” and “current” expenditures. Current expenditures include instruction, student support services, food services, and enterprise operations. Total expenditures include current expenditures, capital outlay, and interest on debt. Beginning in 1988-89, extensive changes were made in the data collection procedures. Some data have been revised from previously published figures.”
Why do they consider capital outlay and debt service as “per student” data?
And how do they amortize this capital outlay?
That isn’t “spending” per student, that is total costs and when you build a school YOU STILL HAVE A SCHOOL which means that is an asset, not an expenditure.
This violates standard accounting practices.
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Dcoronata 7 days ago
@forestoak @Studypeople @mij @Concerned122 Can you please show us on other nation on earth that has enforced a debt limit?
Just one is all I ask for.
If we’re the only ones doing it, maybe we’re doing it wrong.
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mij 7 days ago
@Studypeople @forestoak @mij @Concerned122 Yes to both of you, But, we have to stop the madness. Both, parties, houses, Pres. voter/generations did this 18 trill, or whatever. Will have a strong country now, but someone, someday won’t. Cuts and good fair one, raise tax in few areas, targeted, maybe temp, 5yrs,.7. I don’t know don’t have a staff. but we have to stop spending on programs and get more jobs to pay taxes to move this country along,now.
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Studypeople 7 days ago
@mij @Studypeople @forestoak @Concerned122 I’ll leave it with this… Government can help business, and it’s Citizens… Make it work again. Quit promoting one side..
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mij 7 days ago
@Studypeople @mij @forestoak @Concerned122 Thank you, I see ya at the voting booth.
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antiobama778 7 days ago
@Studypeople @forestoak @mij @Concerned122 Ignorance is bliss. democrat created the 66 2/3 pork barrel laws for narrow minded simpleton voters like yourself!
