Washington's penchant for high-stakes drama is now manifesting itself in another fight over the debt limit, with some top Democrats suggesting that President Barack Obama should invoke the 14th Amendment and raise the $16.4 trillion debt ceiling unilaterally.
First, the facts: The U.S. reached its $16.4 trillion legal borrowing limit on Dec. 31, prompting the U.S. Treasury Department to begin using so-called extraordinary measures to finance the government and continue making interest payments. To free up money, Treasury can shift government-employee retirement funds out of Treasury securities and into idle cash, withhold year-end interest payments to government trust funds and employ other accounting maneuvers. Those efforts, however, will be exhausted by the end of February, according to the Congressional Budget Office. Because the U.S. runs a budget deficit, it must borrow money to fund the government, but the authority to borrow more than the current $16.4 trillion limit rests with Congress. Without an increase, the U.S. will be unable to fund its obligations, such as Social Security payments, government salaries, interest on the debt and other expenses. Going down this rabbit hole would lead to a wave of government defaults, forcing the U.S. to violate the full faith and credit pledge it made to investors.The economic toll from such an outcome would make the last recession look like a bubble.
Polls consistently show most Americans would blame Republicans for a shutdown, which is why Newt Gingrich -- architect of the 1996 government shutdown -- recently called a debt-ceiling showdown a "dead loser" for the party. Obama will largely be able to absolve himself of liability, saying the U.S. Constitution gave him no choice but to make good on interest payments and that the Republicans' refusal to pay for spending they themselves authorized has triggered an economic tsunami.
There is mre at this link, but this was a little of the highlights. But IMO, since we are so muich in debt, why in thell did Obama give congress a raise? Extend unemployment for a year or so without any spending cuts? I just do NOT understand why he is doing this., Can someone tell me for godsakes why this man seems bent on was is becoming more and more clear and that is sending the whole nation into another Depression. According to Forbes, 23.7 million Americans unemployed or underemployed. The BLS reports the unemployment rate (U6) including them as 14.4% for November. That is already Depression level unemployment. Total employment as of November was still 3.2 million jobs below its peak just before the recession started, 5 years ago! Yet since then, the working age population has increased by 11.2 million. That is why America is now still 14.7 million jobs short of full employment.
So, what are your thoughts on ths ladies?? What are the thoughts of all the Obama supporters?Answer Question
Answer by Anonymous at 2:38 AM on Jan. 11, 2013
I honestly think our country's financial problems are too complex for most people to wrap their heads around so they just support borrowing and spending more without much thought on how to pay for it. I don't think they are intentionally supporting damaging future generations, but I don't think many people think that far into the future.
I think that it doesn't matter who is in office, Democrats always blame Republicans, and vice versa. It's a no win for normal citizens. Government only has their best interest at heart and I don't think they really care about the future of the country, they only care about retaining power and control. I think our country has some difficult and ugly days ahead of her.
Answer by QuinnMae at 9:25 AM on Jan. 11, 2013
Answer by Anonymous at 10:06 AM on Jan. 11, 2013
Answer by QuinnMae at 10:22 AM on Jan. 11, 2013
Answer by sunshine196 at 11:58 AM on Jan. 11, 2013
I am hopeful that the right decisions will be made.
Answer by booklover545 at 9:11 PM on Jan. 11, 2013
Answer by yourspecialkid at 9:54 PM on Jan. 11, 2013