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U.S. To Hit Debt Ceiling Sooner Than Thought, Brace Yourselves (Video)

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More political theater, On February 7 the United States will once again reach its statutory debt limit, meaning it cannot legally borrow any more money.

Since the obvious option of cutting spending to match the amount of revenue that the government collects is off the table for some inexplicable reason, Congress will have to pass a new, higher debt ceiling to replace current law.

Just understand that the two weeks until the deadline we should be prepared for all sorts of lies, threats, and forecasts of doom if the debt ceiling is not increased. 

Like the U.S. Treasury will likely hit the debt ceiling earlier than first thought, Treasury Secretary Jack Lew said, setting the stage for another fiscal showdown.

“When I previously wrote to you in December, I estimated that Treasury would exhaust extraordinary measures in late February or early March,” Lew wrote in a letter to House Speaker John Boehner, R-Ohio, and the other top three congressional leaders.

“Based on our best and most recent information, we believe that Treasury is more likely to exhaust those measures in late February,” said the letter, which can be found at tinyurl.com/UPI-Lew-letter.

A surge of February spending, mainly for 2013 tax refunds, will leave the Treasury with little room to maneuver after the official debt limit is reached Feb. 7, he said in the letter.

Boehner spokesman Michael Steel said in a statement Republicans would need concessions from Democrats before they’d agree to raise the borrowing limit.

“The speaker has said that we should not default on our debt, or even get close to it, but a ‘clean’ debt limit increase simply won’t pass in the House,” Steel said. “We hope and expect the White House will work with us on a timely, fiscally responsible solution.”

President Obama has said he will not negotiate over the debt limit, calling it a congressional responsibility, not a bargaining chip.

White House senior adviser Dan Pfeiffer told “Fox News Sunday” that President Obama will “not pay ransom” for getting Congress to fulfill its duty to increase the ceiling and that members should “spare the country the drama.”

Both parties are trying to put on a good show for the American public. Dividing the American people seems to be an art form for Obama and his administration. 

The Debt Limit is the total amount of money that the United States government is authorized to borrow to meet its existing legal obligations, including Social Security and Medicare benefits, military salaries, interest on the national debt, tax refunds, and other payments. The debt limit does not authorize new spending commitments. It simply allows the government to finance existing legal obligations that Congresses and presidents of both parties have made in the past.   

Failing to increase the debt limit would have catastrophic economic consequences. It would cause the government to default on its legal obligations – an unprecedented event in American history. That would precipitate another financial crisis and threaten the jobs and savings of everyday Americans – putting the United States right back in a deep economic hole, just as the country is recovering from the recent recession.   

Congress has always acted when called upon to raise the debt limit. Since 1960, Congress has acted 78 separate times to permanently raise, temporarily extend, or revise the definition of the debt limit – 49 times under Republican presidents and 29 times under Democratic presidents.  In the coming weeks, Congress must act to increase the debt limit. Congressional leaders in both parties have recognized that this is necessary. Recently, however, a number of myths about this issue have begun to surface.

As you can see from the links above, their divide and conquer strategy has been used since the invention of the debt ceiling. They try and scare the American people into selling their childrens future, in return for less economic pain today. This game cannot go on forever.

  Is the FED the Key Factor Behind the Debt Limit? Treasury Secretary Jacob J. Lew is calling on Congress to raise the debt limit in February. The Treasury Department now expects the debt limit “endgame” to arrive in late February, rather than in March.

To some observers, this is rather surprising, since just last week, Senate Majority Leader Harry Reid indicated the nation wasn’t likely to hit the debt ceiling until May.
Lew wrote in a letter to Congressional leaders that “the large obligations of the government that occur in the month of February” will soon put a strain on the government.

Lew also wrote: “Protecting the full faith and credit of the United States is the responsibility of Congress, because only Congress can extend the nation’s borrowing authority. No Congress in our history has failed to meet that responsibility. I respectfully urge Congress to provide certainty and stability to the economy and financial markets by acting to raise the debt limit before Feb. 7, 2014, and certainly before late February.”

The response on Capitol Hill was swift and predictable. Democrats are pushing for a straightforward increase in borrowing authority. And Republicans want to include other provisions related to the debt and deficit.

Senate Budget Chairwoman Patty Murray, a Washington Democrat, was among those who called for an increase with no strings attached.

As quoted by Roll Call, Murray stated: “With the bipartisan agreements on the budget and on funding the government for this year, we have an opportunity to move past the manufactured crises and work together on real challenges. I hope Republicans will listen to Secretary Lew and join Democrats to ensure the U.S. pays its bills on time…”

But Michael Steel, a spokesman for Republican House Speaker John Boehner, dismissed that suggestion: “The Speaker has said that we should not default on our debt, or even get close to it, but a ‘clean’ debt-limit increase simply won’t pass in the House. We hope and expect the White House will work with us on a timely, fiscally-responsible solution.”

What’s always lost in the shuffle during debt-ceiling discussions is that the government has a debt ceiling because it’s a borrower, not a creator of money. The money is borrowed at interest—lots of interest. Yet, the Constitution empowers Congress “to coin money and regulate the value thereof.” That may be the escape hatch from the debt trap the American people need.

Applying that constitutional change seems like a steep uphill challenge. But the fact that Congress 100 years ago handed over its money-creation power to the private Federal Reserve System is the real issue lurking behind fleeting headlines about Washington’s debt-limit. Fed critics find it unfortunate that the current Congress cannot muster the courage that past Congress members found decades ago to shine a bright light on the Federal Reserve.

It’s time to take America back, May 16th 2014 has been set as the 10 million man march on Washington DC. If you can’t make it to Washington DC, go to your state capitals, or even your county court house, get out and be seen. This nonsense has to stop. 

Critical reads: More News Mainstream Media Chooses To Ignore By Josey Wales, Click Here!

 



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    Total 9 comments
    • Veriton

      How this debt limit situation fits in to the larger agenda for a currency reset: http://blog.redefininggod.com/2014/01/26/event-watch-update-50-debt-limit-showdown-language-emerging.aspx

    • infidel666

      One week after China defaults. Get ready the wheels are about to come off the apple cart.

    • Anonymous

      The congress talks about “fiscal responsibility” yet, the US has over 100% debt to GDP? Responsible? Yeah, right, sure. Best I can tell the old banking system is being phased out in favor of a new banking system using a new currency system. Bitcoin and other electronic “digital” monetary instruments seem to be the wave of the future but, as per usual, there are some govenment “strings” attached which will become more visible as time goes on. Much of this has to do with the creation of the Internet of Things, the Hive Mind, and the Global Brain, leading to what the godless futurists call the Singularity, the merging of man and machine. All of this has to do with what is written in Revelation 13, RSV, 1952.

    • westside prepper

      You don’t get a credit card every time bills are due its a stupid answer to a problem NO INCREASE in our debt period if they can’t pay there bills tell us were bankrupt and default

    • King of Shambhala

      Stop Obama in his tracks.

      Edit the Wikipedia page about Obama’s cult “Subud”.

      It’s already started editing so don’t be late.

      Important update! Wikipedia’s Subud page has been edited entering information about Obama.

      google
      Obama Cult Wiki Page Was Edited – Video

    • Jaydog

      what debt ceiling? didn’t they took the ceiling off couple months ago? unlimited spending now

    • creativestoryteller

      does it even matter? i thought the US already defaulted back in October 2013 & covered it up

      /alternative/2014/01/u-s-defaulted-in-october-2013-really-china-to-purchase-the-federal-reserve-2879730.html

    • nubwaxer

      “Since the obvious option of cutting spending to match the amount of revenue that the government collects is off the table for some inexplicable reason . . .
      how about the revenue shortfall that never gets mentioned?
      what seems to be off the table are discussions to reform the tax code so that ultra rich like romney and buffet pay a higher tax rate than their secretaries which would be in the 15% range. what’s off the table are discussions about corporate tax dodging practices that result from a rigged tax code. what is not on the table are discussions to cut corporate welfare to make up for employers paying low wages that are augmented by public assistance as well as subsidies to farmers and energy companies despite their profitability. finally, another “cut” could be to stop providing tax exempt so called non profits that are merely political action committees and money laundering scams.

    • Anonymous

      Can anyone explain why there is debt ceiling in the first place? Surely a debt ceiling is there to put limits on the amount you can borrow, but if it can be moved upwards each time you reach it, it serves no purpose and may as well not be there. Or am I missing something?

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