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Thread: Moody's offers different view on debt limit

  1. #21
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    Re: Moody's offers different view on debt limit

    Quote Originally Posted by AlabamaPaul View Post
    They both have limits. One is set by law the other is set by a private entity...
    And are completely different in any other way!
    He touched her over her bra and underpants, she says, and guided her hand to touch him over his underwear
    Quote Originally Posted by Lutherf View Post
    We’ll say what? Something like “nothing happened” ... Yeah, we might say something like that.

  2. #22
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    Re: Moody's offers different view on debt limit

    Quote Originally Posted by Deuce View Post
    Numbers:

    2013 total revenue was 2700 billion

    Interest: 246
    Social Security: 882
    Medicare: 940
    DOD: 672

    Total: 2740B

    This means total elimination of the following:

    Department of Education
    Department of Veterans Affairs
    Department of Housing and Urban Development
    Department of State and Other International Programs
    Department of Homeland Security
    Department of Energy
    Department of Justice
    Department of Agriculture
    National Aeronautics and Space Administration
    National Intelligence Program
    Department of Transportation
    Department of the Treasury
    Department of the Interior
    Department of Labor
    Department of Commerce
    Army Corps of Engineers Civil Works
    Environmental Protection Agency
    National Science Foundation
    Small Business Administration
    Corporation for National and Community Service
    Disaster costs
    Other spending

    Tell me how this ****ing works, right-wingers.
    baby steps.

    First, admit in no uncertain terms that this default bull**** is bull****. Once you do that, we can proceed in discussing as adults what to do with the income we do have

  3. #23
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    Re: Moody's offers different view on debt limit

    Quote Originally Posted by Mithros View Post
    Lets back up.

    The US finances it's private debt through TNotes, TBonds, TBills etc... Some of those come due every month. That means that we need to sell some percentage of our old debt every month in addition to any new debt. Now, the Treasury paid off 7.5Trillion in maturing debt in 2013, and was forced to issue 8.3 trillion in new debt.

    Roll Over Plan: Treasury Needed to Pay Off Record $7.5T in Maturing Debt in FY 2013, Issued $8.3T New Debt; Increased Net Debt $777B | CNS News
    (from a right wing news source even)

    And here's the interest
    Government - Interest Expense on the Debt Outstanding

    We're in a situation now, where half of the debt is being serviced every year. This currently costs us 400 Billion per year or 7% of the US budget. Failing to raise the debt limit will increase the price of TNotes, TBills, and TBonds. This will immediately increase the cost to finance about half of the debt. Thus instead of 400 Billion per year, we're looking at 600-800 Billion per year to finance our debt. This is money effectively taken out of the US economy which would take an additional 2% or so out of the GDP.

    So now it's 2014. We have a bunch of problems. The US economy is now in a steep recession meaning revenues are say 400Billion lower than 2013. Furthermore, the debt costs another 300Billion more to finance. That's like taking 700 Billion out of our current budget. At this point, the drag of government debt will make it impossible to ever grow or cut our way to a balanced budget.

    At this point we'll have to inflate our way out of our debt, basically giving all of us a huge haircut. We will have effectively foreclosed on ourselves.
    Right. We are paying existing debt with new debt because we have failed to stop spending on "stuff". If we cut back on the "stuff" we are spending on then we can get start making headway on servicing the existing debt. That's what the "foreclosure" is all about. If I chop $200B out of base spending then I don't have to accumulate as much new debt. A process like this would take a while (because the amount of existing debt is immense) but once it gets rolling and people figure out that they won't die just because they have to be personally responsible for a few things we can actually manage to get back to a position of solvency.

  4. #24
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    Re: Moody's offers different view on debt limit

    Quote Originally Posted by Deuce View Post
    And are completely different in any other way!
    Okay, I'll play. Explain how so...
    I don't often change my signature, but this was just too over the top to let anyone forget with what this country is up against...
    Quote Originally Posted by James D Hill View Post
    I am for gay marriage because it ticks off Jesus freaks and social conservatives. Gays are also good voters because the vote for my side so I fight next to them.

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    Re: Moody's offers different view on debt limit

    Quote Originally Posted by Lutherf View Post
    Right. We are paying existing debt with new debt because we have failed to stop spending on "stuff". If we cut back on the "stuff" we are spending on then we can get start making headway on servicing the existing debt. That's what the "foreclosure" is all about. If I chop $200B out of base spending then I don't have to accumulate as much new debt. A process like this would take a while (because the amount of existing debt is immense) but once it gets rolling and people figure out that they won't die just because they have to be personally responsible for a few things we can actually manage to get back to a position of solvency.
    Sure! That's a completely legitimate position. When we set government spending levels you can advocate for those cuts.

    But that's completely different from defaulting on our obligations.

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    Re: Moody's offers different view on debt limit

    Quote Originally Posted by AlabamaPaul View Post
    Okay, I'll play. Explain how so...
    Sometimes those are dangerous words. Good afternoon, AP.
    "It's always reassuring to find you've made the right enemies." -- William J. Donovan

  7. #27
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    Re: Moody's offers different view on debt limit

    Quote Originally Posted by Mithros View Post
    Sure! That's a completely legitimate position. When we set government spending levels you can advocate for those cuts.

    But that's completely different from defaulting on our obligations.
    There can be no default with existing recurring revenue unless a decision is purposely made to do so by the Executive Branch, which would violate the 14th amendment...
    I don't often change my signature, but this was just too over the top to let anyone forget with what this country is up against...
    Quote Originally Posted by James D Hill View Post
    I am for gay marriage because it ticks off Jesus freaks and social conservatives. Gays are also good voters because the vote for my side so I fight next to them.

  8. #28
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    Re: Moody's offers different view on debt limit

    Quote Originally Posted by Jack Hays View Post
    Sometimes those are dangerous words. Good afternoon, AP.
    Good afternoon 2m. I'm feeling a bit frisky this afternoon. I've had my Percocet and raring to go...
    I don't often change my signature, but this was just too over the top to let anyone forget with what this country is up against...
    Quote Originally Posted by James D Hill View Post
    I am for gay marriage because it ticks off Jesus freaks and social conservatives. Gays are also good voters because the vote for my side so I fight next to them.

  9. #29
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    Re: Moody's offers different view on debt limit

    Quote Originally Posted by head of joaquin View Post
    Exhibit A in why the tea party will drive the US into default and cause the second GOP economic meltdown in 5 years.
    the u.s.. is bringing in somewhere about 250 billion a month..a quarter of a trillion each month.

    interest on the debt is about 25 billion a month, ...how does a default happen?

    since revenue is 10 times higher than the interest.

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    Re: Moody's offers different view on debt limit

    Quote Originally Posted by AlabamaPaul View Post
    Good afternoon 2m. I'm feeling a bit frisky this afternoon. I've had my Percocet and raring to go...
    Ah. Feeling no pain.
    "It's always reassuring to find you've made the right enemies." -- William J. Donovan

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