Republicans retreat on debt limit stance

[Darwin333]

How dim. How do you think that the $2.5T+ SS trust fund was built up, anyway?

By loaning money to the govt, as provided by statute.

The insults aren't necessary. I simply asked if it was an ongoing ability or something that had to be approved by Congress on some timeframe or monetary basis.

When push comes to shove, Investors in US Treasuries will get paid first, ahead of the bluehairs. Bet on it.

You are correct but push will not come to shove in this scenario. It simply won't get to that.

But let's not talk about how Repubs would be violating the 14th amendment to the Constitution by withholding debt payment, huh?

And we disagree again...... We currently make enough revenue to cover all of our interest payments. Its all the other spending that is in trouble if we hit the ceiling. Now if the Treasury chooses to spend the revenue on other things, also authorized by Congress, are either sides in violation of the 14th? I think a good argument can be made that the Treasury has far more responsibility in the matter than Congress since we do collect enough revenue to service our debt.

 

[Darwin333]

I don't agree. There is no present math issue with the debt ceiling or the deficit.

Could you enlighten me on this new math that you have discovered?

Are you seriously saying that when the government starts pulling out deficit spending that it will not impact the nations GDP?

 

[fskimospy]

Could you enlighten me on this new math that you have discovered?

Are you seriously saying that when the government starts pulling out deficit spending that it will not impact the nations GDP?

It will impact GDP, particularly in this situation. It does not necessarily mean that in all cases that each dollar leads to a dollar of contraction however. (in this case it will probably be more than a dollar, but in other cases less)

 

[Darwin333]

It will impact GDP, particularly in this situation. It does not necessarily mean that in all cases that each dollar leads to a dollar of contraction however. (in this case it will probably be more than a dollar, but in other cases less)

Are you familiar with the actual formula for calculating GDP? If so, could you show me an example of how spending $100B less (with all other variables the same) results in less than a $100B contraction?

 

[fskimospy]

Are you familiar with the actual formula for calculating GDP? If so, could you show me an example of how spending $100B less (with all other variables the same) results in less than a $100B contraction?

Sure, that's no problem at all. That's the whole idea behind crowding out, in fact.

http://en.wikipedia.org/wiki/Crowding_out_(economics)

If our spending existed in a vacuum what you're saying would be right, but it doesn't.

 

[Tom]

Could you enlighten me on this new math that you have discovered?

Are you seriously saying that when the government starts pulling out deficit spending that it will not impact the nations GDP?

no, not saying that. I'm saying the current situation isn't an economic issue based on numbers, its a political issue based on policies.

 

[piasabird]

They should allow the increase in the debt limit almost automatically. Just quit passing all the spending bills in the mean time, until there is a budget. You have to separate these two issues.

 

[ivwshane]

They should allow the increase in the debt limit almost automatically. Just quit passing all the spending bills in the mean time, until there is a budget. You have to separate these two issues.

Finally some sanity.