United States of America is about to run out of overdraft. LOL

The once and future king · #1 09-20-2007, 12:57 PM

US Sec of Treasury to ask congress to extend US gov overdraft limit.

The current limit will be met by Oct1. The Current limit is 8.9 Trillion.

Everyone get your dollars now, before stocks increase [img]/images/graemlins/crazy.gif[/img]

iron81 · #2 09-20-2007, 01:20 PM

What TOAFK refers to as the overdraft limit is normally called the debt ceiling: the maximum debt the Treasury is authorized to issue. This has happened dozens of times in the past and Congress has always increased it when they had to, although sometimes people use the debt ceiling to push other priorities. If it weren't for the staggering sums of money involved, it would barely qualify as news.

tolbiny · #3 09-20-2007, 01:27 PM

[ QUOTE ]
"The full faith and credit of the United States, to which we all remain committed, is a national asset

[/ QUOTE ]

Debt = Asset

Even Orwell couldn't come up with that.

canis582 · #4 09-20-2007, 01:35 PM

Whats the national debt in canada? I'm thinking of moving

iron81 · #5 09-20-2007, 01:36 PM

That's not what that means. "full faith and credit" is government speak for "My word is my bond". Isn't your word valuable to you?

tolbiny · #6 09-20-2007, 01:50 PM

[ QUOTE ]
That's not what that means. "full faith and credit" is government speak for "My word is my bond". Isn't your word valuable to you?

[/ QUOTE ]

No, that's not what they are saying. They are saying that the ability to increase their level of debt is an asset. My word is only an asset if I can keep it, it is a liability when I cannot keep it. I don't increase the value of my word by increasing the number of times I borrow money, I decrease it by making it harder to pay back my initial promises as well as the new promises.

Borodog · #7 09-20-2007, 01:54 PM

[ QUOTE ]
That's not what that means. "full faith and credit" is government speak for "My word is my bond". Isn't your word valuable to you?

[/ QUOTE ]

Are you paid to post apologia?

"Full faith and credit" is government speak for "we promise to make the citizens' pay for it."

bobman0330 · #8 09-20-2007, 01:57 PM

[ QUOTE ]
[ QUOTE ]
That's not what that means. "full faith and credit" is government speak for "My word is my bond". Isn't your word valuable to you?

[/ QUOTE ]

No, that's not what they are saying. They are saying that the ability to increase their level of debt is an asset. My word is only an asset if I can keep it, it is a liability when I cannot keep it. I don't increase the value of my word by increasing the number of times I borrow money, I decrease it by making it harder to pay back my initial promises as well as the new promises.

[/ QUOTE ]

I don't know exactly what this means, but I don't see how you could argue that the ability to borrow $9 trillion at 4.5% in your own currency is anything but a gigantic asset.

tolbiny · #9 09-20-2007, 02:12 PM

[ QUOTE ]
[ QUOTE ]
[ QUOTE ]
That's not what that means. "full faith and credit" is government speak for "My word is my bond". Isn't your word valuable to you?

[/ QUOTE ]

No, that's not what they are saying. They are saying that the ability to increase their level of debt is an asset. My word is only an asset if I can keep it, it is a liability when I cannot keep it. I don't increase the value of my word by increasing the number of times I borrow money, I decrease it by making it harder to pay back my initial promises as well as the new promises.

[/ QUOTE ]

I don't know exactly what this means, but I don't see how you could argue that the ability to borrow $9 trillion at 4.5% in your own currency is anything but a gigantic asset.

[/ QUOTE ]

You borrow $100 from me, I estimate a very high chance of you paying it back.
You now borrow an additional $100 from Borodog, I have to lower my estimation that you will be able to pay it back.
PVN steps up and lends you another $100, both Boro and I lower our expectations of being paid back.
You then announce that you wish to borrow $300 more dollars, B, P and I all devalue the likely hood of you paying us back further. This is what raising the cap is, the government is saying that it INTENDS to borrow more than 9 trillion, not that banks/individuals/foreign governments want to LEND us more money.

iron81 · #10 09-20-2007, 02:51 PM

[ QUOTE ]
Are you paid to post apologia?

[/ QUOTE ]
I understand why one might think that, but no. The positions I take on this board on broad issues are generally pro-government because 1. I think that the US Govt generally does a good job and 2. On broad issues where I disagree with the government, you guys have generally beaten my point to death anyway. My anti-government posting generally covers narrow issues like Iraq.