US 13.4 TRILLION DEBT

US Set To Reach $14.3 Trillion 'Debt Ceiling'

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6:07am UK, Monday May 16, 2011

Greg Milam, US correspondent
America is set to reach its $14.3 trillion 'debt ceiling' - the amount it is
legally allowed to borrow.










If the US Congress fails to vote to increase the debt limit, the White House
has warned that the country would default on its debt and spark a new financial
crisis.
The US Treasury says it will implement "extraordinary measures" so the
country can keep paying its bills until August.
But Federal Reserve Chairman Ben Bernanke told Congress last week that any
delay in increasing the debt limit would result in higher interest rates and
could have "extremely dire consequences for the US economy".



President Barack Obama has been leading financial
negotiations


And, while it is expected the debt ceiling will be increased, the debate has
become wrapped up in the political row about how to cut the country's crippling
debt.
President Barack Obama has been leading negotiations between Republicans and
Democrats on getting the country's finances under control but there are deep
divisions.
Republicans are calling for spending cuts running to the trillions of dollars
and including welfare and health programmes for the elderly and poor.
White House economic adviser Austan Gooldsbee called their plans
"insane".
Republicans say they will not discuss raising taxes - something Obama and
many Democrats say has to be part of the solution.
Economists say the tax cuts put in place by President George W Bush are to
blame for around half of the current US debt. Health spending and the wars in
Iraq and Afghanistan are also major factors.
After a meeting last week between Obama and senior Republicans, Senator Tom
Coburn said: "There was not a lot of agreement."



Mr Bernanke said a delay could have dire consequences for
the US economy


Diane Lim Rogers, chief economist for the non-partisan Concord Coalition,
told Sky News that both parties will have to give ground.
She said: "Saying that we need cut entitlement programmes and raise taxes,
those are words politicians like to stay away from. But the fact is that we're
going to have to do combination of both of those things."
America's deficit for this year is expected to be a record-breaking $1.5
trillion.
The total debt increases by nearly $3m every minute and, if divided up among
the country's 300 million people, would leave everyone owing more than
$45,000.

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Congressional Democrats and Obama are working together against Congressional Republicans as it usually is. The debt ceiling is a big subject currently. It needs to be increased soon. The debt ceiling is how much debt the federal government can take out prior to it being shut down. In August, if Congress cannot reach a conclusion, the federal government may fall behind on some loans. The country will only survive if the debt limit is increased, President Obama believes. Democrats trust this. Much of the Republicans do not think it is a good suggestion. They do not think that the nation is setting a very good model by getting more debt as it discourages borrowing among citizens. It is a huge debate. Until there are changes to the federal spending budget made, Republicans won’t change their minds. They feel this change is necessary. Obama feels the government needs huge installment loans if it is going to make it beyond the deadline of August. We’ll have to wait and see who gets their way.

williamjacks wrote:Congressional Democrats and Obama are working together against Congressional Republicans as it usually is. The debt ceiling is a big subject currently. It needs to be increased soon. The debt ceiling is how much debt the federal government can take out prior to it being shut down. In August, if Congress cannot reach a conclusion, the federal government may fall behind on some loans. The country will only survive if the debt limit is increased, President Obama believes. Democrats trust this. Much of the Republicans do not think it is a good suggestion. They do not think that the nation is setting a very good model by getting more debt as it discourages borrowing among citizens. It is a huge debate. Until there are changes to the federal spending budget made, Republicans won’t change their minds. They feel this change is necessary. Obama feels the government needs huge installment loans if it is going to make it beyond the deadline of August. We’ll have to wait and see who gets their way.

Hi williamjacks and welcome.

America is so indebted to China and signed some kind of agreement that if they default China can take it"s pick in the Country on what to sequester whether it is privately owned or not. The World is in such turmoil and the latest news that an Oil Tanker was blown up in Yemen with a million barrels, enough to keep Greece going for 3 days is another example . Maybe we all ought to learn basic skills , like how to weave, cook on an open fire and go back to the barter system.

Obama walked out of a meeting yesterday and if the Democrats and Republicans don"t reach agreement by 2nd August the U.S. goes into debt default.

Moody"s puts U.S. on downgrade review.

Panda wrote:

williamjacks wrote:Congressional Democrats and Obama are working together against Congressional Republicans as it usually is. The debt ceiling is a big subject currently. It needs to be increased soon. The debt ceiling is how much debt the federal government can take out prior to it being shut down. In August, if Congress cannot reach a conclusion, the federal government may fall behind on some loans. The country will only survive if the debt limit is increased, President Obama believes. Democrats trust this. Much of the Republicans do not think it is a good suggestion. They do not think that the nation is setting a very good model by getting more debt as it discourages borrowing among citizens. It is a huge debate. Until there are changes to the federal spending budget made, Republicans won’t change their minds. They feel this change is necessary. Obama feels the government needs huge installment loans if it is going to make it beyond the deadline of August. We’ll have to wait and see who gets their way.

Hi williamjacks and welcome.

America is so indebted to China and signed some kind of agreement that if they default China can take it"s pick in the Country on what to sequester whether it is privately owned or not. The World is in such turmoil and the latest news that an Oil Tanker was blown up in Yemen with a million barrels, enough to keep Greece going for 3 days is another example . Maybe we all ought to learn basic skills , like how to weave, cook on an open fire and go back to the barter system.

Hillary Clinton signed an agreement giving China 'Imminent domain,' over US land and property, should the US default.

AnnaEsse,

It"s looking decidedly dodgy for the U.S. if the Democrats and Republicans reach do not reach agreement by 2nd August. Bernanke says he will help as a last resort but one of the Credit Agencies has said they U.S. will lose it"s triple A credit rating if it defaults.

There is still no agreement to raise the debt level in the U.S. and the latest figures show that America"s Debt has exceeded it"s Revenue for the first
time since the second World War.

There is still no agreement between the Republican and Democrat Parties and the deadline is 2nd August . A plan must be agreed by the end of the day
to be passed by Congress by Wednesday. All they are thinking of is saving their seats not the Country. It is pathetic really that with the Election due
next Year both parties are thinking of how many seats they will lose if they give in to each others proposal. Moody"s are suggesting America will lose
it"s Triple A rating because their debt will have reached it"s limit of US$ 14.3 TRILLION.

pooh wrote:

They are in deep pooh so to speak their is no way they can pay this back unless they scrap med care for the poor, low paid. Stop spending on NASA, military contracts etc.

Bet they will not take a salary reduction.

Swiss Franc has taken over from the U.S. Dollar and Gold reached it"s highest price ever today. Still no agreement between the Democrats and
Republicans, even if they come up with a compromise by 2nd August, one of the Credit Agencies is expected to downgrade the U.S. Both parties
to put forward their plans again.

pooh wrote:Well lets make the £ the worlds currency for trading, euro/dollar well worthless.

Uum, I don"t think the £ is all that strong , it will be the Yuan or Rouble if anything.

Obama Appeals To Public Over Debt Crisis

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6:10am UK, Tuesday July 26, 2011

Sally Arthy, Washington news editor

In an televised address to the American people, President Obama has
criticised the latest Republican scheme to avert a looming government debt
crisis ahead of an August 2 deadline.










Mr Obama stepped to the microphones in the White House after another day of
political wrangling in Washington which has ended with rival plans to avoid the
US defaulting on its loans and no compromise in sight.

The President declared: "The American people may have voted for divided
government, but they didn’t vote for a dysfunctional government."

The Republicans would cut discretionary spending by $1.2trn, set up a
powerful Congressional committee to zero in on more savings and increase the
federal government's overdraft by $900bn, which would allow the government to
pay its bills for a few more months.

Mr Obama said this "wouldn’t solve the problem". Democrats want the ceiling
raised much higher, so the government will be funded until after the 2012
presidential election.

What was crystal clear
tonight is that President Obama and Speaker Boehner are on two different
political planets with no sign of
compromise.

Sky's US political analyst
Jon-Christopher Bua blogs on the crisis gripping America



A separate plan put forward by the Democratic Senate Majority leader Harry
Reid would cut $2.7trn of spending, nearly a third of which would come from the
savings achieved by the US drawing down its troops in Afghanistan and Iraq.

Crucially, it accepts two key Republican demands: no taxes would be raised
and one dollar would be cut for every dollar added to the country's massive
debt.

However, Republicans will have to be convinced: the Senate Democrat's plan
would fund the government until 2013, which the party leadership believes is an
attempt by the President's party to ensure his re-election.

Shortly after the President had finished his address, the Republican leader
of the House of Representatives, John Boehner, delivered a rebuttal.

He said: "The sad truth is that the president wanted a blank cheque 6 months
ago, and he wants a blank cheque today.



Republican John Boehner said President Obama wanted a
'blank cheque'



"That is just not going to happen."

Directly challenging Mr Obama, Mr Boehner said: "There is no stalemate in
Congress."

He said the Republicans' newest legislation would get passed by the House and
could clear the Senate.

But time is running out.

There are dire predictions from the US Treasury if the government runs out of
money to pay its creditors.

It argues failing to agree a package would harm America's credit rating, make
the cost of borrowing more expensive and that would eventually trickle down to
every household in America and perhaps trigger another global dip.

Some Republicans, including those with Tea Party sympathies, believe the
White House is trying to scare American into compliance so President Obama can
keep government spending high.

Earlier, the International Monetary Fund warned US default would have
"significant global repercussions, given the central role of US Treasury bonds
in world financial markets."




e

Sky News.

US Senate rejects Republican Bill to raise Debt Limit just two hours after being passed by the House of Representatives.

It was rejected within 16 minutes of being presented.

It was defeated in the Democratic-controlled Senate by 59 to 41, after being passed by 218 votes to 210 in the House of Representatives.

Angelique wrote:Sky News.

US Senate rejects Republican Bill to raise Debt Limit just two hours after being passed by the House of Representatives.

It was rejected within 16 minutes of being presented.

It was defeated in the Democratic-controlled Senate by 59 to 41, after being passed by 218 votes to 210 in the House of Representatives.

Hi Angelique

I was just having a game of Solitaire and new message arrived........you are obviously a night owl like me.


They said it would be rejected by the Senate so........where do they go from here????? Bernanke can put a plaster on the bleeding but it will not last long. Who would have thought the great U.S.of A , like the UK they let the Banks do as they please, spent billions propping them up and for what.???

Too many people living on Credit and an unfair distribution of Wealth, plus the cost of lives and money invading all these Countries instead of
safeguarding their own, the U.S. and Britain in tandem.

Panda

Yes a definite owl - just seen on Sky ticker tape :

President Obama says agreement has been reached between Republicans and Democrats on US Debt Deal.

Does this mean it's all done and dusted?

Angelique wrote: Panda

Yes a definite owl - just seen on Sky ticker tape :

President Obama says agreement has been reached between Republicans and Democrats on US Debt Deal.

Does this mean it's all done and dusted?

Just heard on one of our TV channels that an agreement was reached but that he wasn't able to convince the Republicans to tax the rich. If a Prime Minister or a government here wanted to tax the rich and the opposition didn't let them, there would be riots in the streets.

It"s obscene that the likes of Warren Buffet can donate $8 Billion to various Charities . The distribution of wealth in America has always been uneven
and the Republicans are determined to oust Obama next year , hence the brinkmanship. Even if they come to an agreement now, the problem won"t go away.

Panda wrote:It"s obscene that the likes of Warren Buffet can donate $8 Billion to various Charities . The distribution of wealth in America has always been uneven
and the Republicans are determined to oust Obama next year , hence the brinkmanship. Even if they come to an agreement now, the problem won"t go away.

If a political party, in Portugal, stopped a government from taxing the rich, they wouldn't reach power in the next decade. Sadly what is missing here is the initiative to tax them.

Claudia79 wrote:

Panda wrote:It"s obscene that the likes of Warren Buffet can donate $8 Billion to various Charities . The distribution of wealth in America has always been uneven
and the Republicans are determined to oust Obama next year , hence the brinkmanship. Even if they come to an agreement now, the problem won"t go away.

If a political party, in Portugal, stopped a government from taxing the rich, they wouldn't reach power in the next decade. Sadly what is missing here is the initiative to tax them.

Yes Claudia, Capitalism has always been the byword in the U.S., Credit the second. The Republicans would rather abandon a Welfare programme for the
poor than tax the rich who they see as the moneymakers . A couple of years ago USB , a Swiss Bank was fined in the U.S. for malpractice and the Fed
offered the Bank a deal to waive the Fine if the Bank supplied the names of 25 American Account Holders in their Swiss Bank. It resulted in $100
million dollars of untaxed income , so the FBI asked for another 75 accounts.

Panda wrote:

Claudia79 wrote:

Panda wrote:It"s obscene that the likes of Warren Buffet can donate $8 Billion to various Charities . The distribution of wealth in America has always been uneven
and the Republicans are determined to oust Obama next year , hence the brinkmanship. Even if they come to an agreement now, the problem won"t go away.

If a political party, in Portugal, stopped a government from taxing the rich, they wouldn't reach power in the next decade. Sadly what is missing here is the initiative to tax them.

Yes Claudia, Capitalism has always been the byword in the U.S., Credit the second. The Republicans would rather abandon a Welfare programme for the
poor than tax the rich who they see as the moneymakers . A couple of years ago USB , a Swiss Bank was fined in the U.S. for malpractice and the Fed
offered the Bank a deal to waive the Fine if the Bank supplied the names of 25 American Account Holders in their Swiss Bank. It resulted in $100
million dollars of untaxed income , so the FBI asked for another 75 accounts.

What I find incredible is that the American people don't find it outrageous. If something like that happened here (someone in power wanting to to tax the rich and the opposition - regardless of both parties in question - not allowing it, that party wouldn't reach power for quite some years. As I said, what we sadly lack is the will to even propose such a thing. I'm sure we would all be delighted at sure a measure, here. Except the rich, of course.

IT APPEARS THE RICH GOT US INTO THIS MESS,SO THEY SHOULD PAY THEIR FAIR SHARE.
BOYCOTT THE RICH,I SAY

Badboy wrote:IT APPEARS THE RICH GOT US INTO THIS MESS,SO THEY SHOULD PAY THEIR FAIR SHARE.
BOYCOTT THE RICH,I SAY

We all have to pay for this mess. It makes sense that the rich pay more than the rest of us. How any party can openly protect the rich and still think they can win an election is outrageous. At least where I come from. Guess it's because my country is not a rich one that I/we find this particularly shocking.

The U.S. analysts are saying this cobbled together solution will do nothing and more decisions will have to be made in a few months time. Apparently
the Public are annoyed that the Politicians are more interested in their Votes than trying to sort out the financial problem in the U.S. Traders are
moving away from the $ dollar and buyimg Japanese Yen and Gold as a safe haven.

As expected the Bill was passed but a saving of $2.1 billion over 10 years is hardly likely to change the situation which will have to be faced again
in a few months. Many Analysts and some Politicians believe this will do nothing to help the current situation and I particularly liked this comment:-


Posted by: Made in Dublin on August 2, 2011 8:49 AM

Who gives a hoot, they were always going to come
up with an agreement or face what ?, the mighty US were going to default
!...Such sensationalism of such rubbish...
They will default though..Just not
YET...They are bunched big time...
Hello China, oh great red one in the east,
you now in charge of the mighty US dollar, what you want us do for you ?

Seems like they've only delayed things until it all starts up again in December

It"s like the whole Monetary system is in meltdown. Switzerland now suffering because their Currency is appreciating so fast because the U.S. $ is
no longer favourite is the latest casualty. Watches, their biggest export is suffering because of the ROE on the Swiss currency is making them more expensive.