- the repayment by personal debts is legally enforcible
- the repayment of national debts doesn’t matter as long as interest payments reach the bank accounts of those with ‘vested interests’…
Now, however, as people are beginning to wake up to the impossibility of ‘growing debt’ forever, ‘debt ceilings’ are used
- either to bankrupt governments or
- at least to reduce public spending.
Hopefully more and more people see how money has become a tool to control and has ceased to be a medium of exchange, let alone a store of value…
Maybe the ease with which ‘money’ is created as debt should be kept separate from controlling a nation’s money supply?
New analysis claims US may default 15 days prior to the actual date
Reports claim that the US is going to default on its national debt, at least half a month prior to the date on which it was expected to default. So, the date by which the US may default is 15th February, 2013 instead of the last of February. Therefore, there is also an increasing debate over the options through which it would be possible to raise the debt ceiling. As per the analysis by the Bipartisan Policy Center, the government won’t be able to pay back all of the debts in between the time share in the range of February 15th and March 1st of this year (2013).
Less time to solve national debt issues
It was on the 31st of December, 2012, that the nation hit the $16.4 trillion statutory debt limit. However, it is the different types of accounting schemes designed by the Treasury Department that may help the government in avoiding the funding of financial problems too soon. These accounting schemes according to the Treasury are known as the “extraordinary measures,” which are supposed to work on an ordinary basis in order to deter the default at least by two more months of this year.
Still, the officials have said that they cannot give any precise date when the national debt may actually reach the default, because it is surrounded by a serious level of uncertainty. Steve Bell, the senior director of economic policy at the Bipartisan Policy Center, said “Our numbers show that we have less time to solve this problem than many realize,” and has also added that “It will be difficult for Treasury to get beyond the March 1 date in our judgment.”
This time it is going to be another greater battleground for Washington, as the deadline within which the debt ceiling limit will have to be raised is fast approaching. The Republicans this time are going to claim that the government should take greater measure to bring over increased spending cuts.
The House Speaker John A. Boehner from Ohio has said that he is going to put importance on reducing federal dollar spending by every dollar that is to be borrowed. However, according to the White House, President Barack Obama may not agree to negotiate on this issue. This is because, the debt ceiling in itself is the greatest factor that limits the accountability which the Congress has affirmed to pay. Jay Carney the White House press secretary has said about this: “What he will not do — as he has made clear — is negotiate with Congress over Congress’s sole responsibility to pay the bills that Congress has already incurred,” and he also added that “Nobody forced Congress to rack up the bills that it incurred. And it is an abdication of responsibility to say that we’re going to let the country default and cause global economic calamity simply because we’re not getting what we want in terms of our ideological agenda.”
About the Author – Grace Ruskin is a professional writer associated with http://www.debtconsolidationcare.com. She has contributed her articles to various financial blogs. They cover how to manage debt smartly to get rid of debt, debt solutions to assist you during financial crisis and many more.
- This is what would happen if we breach the debt ceiling (washingtonpost.com)
- Debt ceiling FAQs: What you need to know (clickondetroit.com)
- From the Fiscal Frying Pan Into the Debt Ceiling Fire (minyanville.com)