46 replies to this topic

[ToxicS]

The United States will hit the legal limit on its ability to borrow no later than May 16, Treasury Secretary Timothy Geithner said on Monday, ramping up the pressure on Congress to act to avoid a default.

Previously, the Treasury had warned that the country could hit the $14.294 trillion statutory debt limit between April 15 and May 31.

In a letter to U.S. Senate Majority Leader Harry Reid, Geithner said that while the projections could change, the Obama administration does not believe they could change in a way that would give Congress more time to raise the debt ceiling.

Geithner's warning comes as Republican and Democratic lawmakers struggle to complete a spending package that would keep the government operating beyond Friday. Republicans want to use that bill to cut spending more deeply than Democrats.

If the debt ceiling is not increased by May 16, Geithner said the Treasury has authority to take certain extraordinary measures to temporarily postpone the date the United States would default on its obligations.

However, those actions would be exhausted after about eight weeks and there would be "no headroom" to borrow within the limit after July 8, he said.

http://www.huffingto...r_n_844628.html

Yeah, fun stuff.

Any thoughts?

This will probably turn into a debate, but it's safe here for now

[CraigChrist]

china could say pay your debts and then own us end of story

[iargue]

Do people not realize that this is just so they can spend money on stupid things?

china could say pay your debts and then own us end of story

Except china hardly owns any of it.

[ToxicS]

Do people not realize that this is just so they can spend money on stupid things?

Of course, we love spending money on useless wars so military contractors and oil companies can get rich.

[Puppetmaster]

When this happens... who's moving to Canada? Show of hands, please.

[Junsu]

Taxes going uppppp

[ToxicS]

It'd be funny if some of the most economically well-off states secede from the USA after this bankruptcy

Is it possible? Yes

http://answers.yahoo...02002921AACO5WH

[alucard]

If the US goes backrupt then the world is going to be more stuffed then it is now. And it could mean a lot of change to this world, even war.

lets hope not.

[samcoconut]

Good point. Some states actually have excess money. Although, the US wouldn't really be worse off without them...

[Royce]

All i have to say is...we owe a lot.......but lets go bomb and drop CIA agents in libya also.....sometimes i feel like common sense is set aside

[Blackout]

If the US goes backrupt then the world is going to be more stuffed then it is now. And it could mean a lot of change to this world, even war.

lets hope not.

Agreed.

[Mahas]

If the US goes backrupt then the world is going to be more stuffed then it is now. And it could mean a lot of change to this world, even war.

lets hope not.

I Disagree. Simply because we could already be in the same situation right now than if the US does go bankrupt.

[Strategist]

Ah fuck it! come to Australia best country in the world..... haha (lets see what sort of response that gets..... haha)

But seriously, The US looks like its headed for the shitter real quick. Its times like these im glad i live where i do

[Mahas]

Ah fuck it! come to Australia best country in the world..... haha (lets see what sort of response that gets..... haha)

But seriously, The US looks like its headed for the shitter real quick. Its times like these im glad i live where i do

We Aussies have it good don't we? I mean we go through some shit ourselves but damn we get through some crap

[Strategist]

Yeah... our backwards archaic government still has not given us a R18+ rating for games, which leaves gamers (who provide many sales to the retail sector) left in the lurch when games like MK9 are released everywhere in the world but on our shores.

We also pay through the nose for movies (double the price the US pays, even though our dollar is much stronger right now our prices have not dropped) as well as games (once again, double the price for a new release).



We have it good, but far from having it the best, and we are more than likely headed down the path of collapsing industry such as the US. It's the business from China chasing our natural resources (gold, copper, lead, coal, zinc) that has kept our economy going strong.

yeah too true about those facts man. I totally agree with the need for the R18+ rating too. FFS if we dont get that bill passed ima spit chips hey. Ive been hanging for the release of MK9 for fucking ages now and to have my hopes and dreams shattered by some measly law..... i wont have it lol. As for the topic at hand, we do tend to get it easier than most countries, but yeah we could easily end up in the shit like the US anytime....

[Jeb]

China is the reason the US wont go bankrupt. If we go bankrupt we are their biggest trading partner, it would ruin their economy too.

[Bobjacob]

The US may go bankrupt, but that doesn't mean that the USD will crash. While the it may turn out to be another economic recession for the whole world, it is literally impossible for the US economy to die off just like that since so many countries all over the world have invest so much funds into the country. The reliance and significance of the USD will almost always be there, unless say a few centuries later.

The US is already so heavily in-debt and yet they carry on giving aid and spending.. Well, I guess that's the responsibility of an international policeman trying to maintain his position and power.

..Just my two cents worth

[ToxicS]

China is the reason the US wont go bankrupt. If we go bankrupt we are their biggest trading partner, it would ruin their economy too.

Nope. Politicians who are pissed off at all the spending the government is doing will make the US go bankrupt regardless

[Bobjacob]

In the past 12 months the USD has gone from being worth 60c for every AUD to being worth 1.05 for every 1AUD... the value of US currency has dropped... ALOT... and it's still falling. Just because it's widely used atm does not mean it wont be cashed out for another dollar performing much much better.

Do note that I'm not saying the USD can't crash, I'm looking at macro-economics here, not micro. China could easily trigger a USD crash if they chooses to appreciate their yuan instead of keeping it low (if not dropping it lower). However, the USD crashing would mean too much to too many countries around the world. Almost everyone would suffer heavily if the USD crashes and hence, no one would want that to happen.

That is also a reason why it is possible for the US to incur a debt of 2 trillion.

[thorgal]

Do you really think they would put a limit to US debts ?
I think so long that US military is active as today nobody is going to challenge that.

[WharfRat]

hahaha... Here is what is going to happen.

"Oh shit! We're about to hit the debt limit of our GDP! What do we do?!?!"

"Let's raise the debt limit!"

"Brilliant!"

*Continues racking up debt*

More important news (at least in the short term of things) If a budget resolution isn't passed by tomorrow night, the entire government is shutting down. No military paychecks... no social security checks... no medicaid or medicare... etc, etc. I wonder how long that would go on before you see the U.S. having an egypt moment in our streets... I can't imagine how much bloodier it would be, though... U.S. military vs. millions of heavily armed civilians... damn son.

Contact your congressman and tell them to get this shit worked out.

NOTE: I am not truly suggesting that we are about to have a civil war because the government will shut down... I doubt the govt. will shut down... and even if it does, they likely will pass a resolution saying that all the people I listed above will still get their checks... although the situation I listed is possible, it is highly improbable. I am leaving this note as to not be a fear monger.

[Kyle]

hahaha... Here is what is going to happen.



More important news (at least in the short term of things) If a budget resolution isn't passed by tomorrow night, the entire government is shutting down. No military paychecks... no social security checks... no medicaid or medicare... etc, etc. I wonder how long that would go on before you see the U.S. having an egypt moment in our streets... I can't imagine how much bloodier it would be, though... U.S. military vs. millions of heavily armed civilians... damn son.

Contact your congressman and tell them to get this shit worked out.

NOTE: I am not truly suggesting that we are about to have a civil war because the government will shut down... I doubt the govt. will shut down... and even if it does, they likely will pass a resolution saying that all the people I listed above will still get their checks... although the situation I listed is possible, it is highly improbable. I am leaving this note as to not be a fear monger.

I could definitely be wrong, but I was under the impression that social security would still be issued.

[ilovepolkadots]

#1. this is not news

#2. http://www.brillig.com/debt_clock/

http://www.usdebtclock.org/
(^) this one is actually more interesting

Edited by ilovepolkadots, 07 April 2011 - 11:59 AM.

[Brennon]

Ah fuck it! come to Australia best country in the world..... haha (lets see what sort of response that gets..... haha)

But seriously, The US looks like its headed for the shitter real quick. Its times like these im glad i live where i do

I know many friends who have visited Sydney and can vouch for Australian girls to be the hottest.

[Danielle88]

If you haven't noticed, every single country in the world is completely bankrupt. Just look at the defecit. It's not new news.