Keep Borrowing...or Else!
It appears that we are about at that point...the point where if we don't keep borrowing money that we are going to start defaulting on the debt payments we already have.
(Reuters) - With the government about to hit its $14.3 trillion debt limit, Treasury Secretary Timothy Geithner has warned of "catastrophic" consequences and a new recession if Washington is not able to borrow more.
A divided Congress has run out of time to raise the debt limit before Monday's deadline, forcing Geithner into an emergency reallocation of funds so the government can meet its obligations, including payments to Treasury bondholders.
Those measures are only expected to give the government until August 2 before it will start defaulting on payments including those on Treasury debt, an event that could trigger chaos in world financial markets.
"A default would inflict catastrophic, far-reaching damage on our nation's economy, significantly reducing growth and increasing unemployment," Geithner said in a letter, dated Friday, to Democratic Senator Michael Bennet.
Sounds like a pickle.
Sounds a little bit like the person who takes out another credit card and uses a cash advance on the new card to make payments on the other credit card balances.
How long can a person do that?
Answer; ...Not very long. Somethings gotta give.
posted by dennis at
11:14 PM
1 Comments:
Hi Dennis,
Yep, we are on the edge. How do you think we would go at the present time with an oil embargo from OPEC.
Here is a good read for you. Ahmadinejad Likely to Chair OPEC Meeting. I wonder if his goals and aspirations being controlled by Imam Mahdi, AKA the powers of darkness, will have a negative outcome for the west.
Interesting how the 1979 revolution is mentioned and the consolidation of power.
http://english.farsnews.com/newstext.php?nn=9002260926
Cheers,
Tom
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