quote:

NEW YORK (CNNMoney.com) -- Congress has raised the debt ceiling four times in the past two years and will probably have to do it again in the next month.

With the government borrowing record amounts of money, the nation's current debt ceiling of $12.1 trillion will be pierced soon.

That ceiling is the cap on how much the country allows itself to have in debt. In credit card parlance, the ceiling is the U.S. credit limit. At the end of August, U.S. debt totaled $11.8 trillion. That's roughly $349 billion shy of the statutory limit.

The ceiling is meant to serve as a brake on spending because lawmakers would have to think very seriously before they breach the limit and take a very difficult political vote to do so. In reality, lawmakers really don't have a choice but to raise the ceiling and they know it.

Put simply, if they don't raise the ceiling, the country will go into default on its debt. The domino effect would be painful, to say the least.

Treasury bonds would come due but the Treasury wouldn't have the authority to borrow more money to pay holders of those securities.

quote:

Originally posted by floersh:
Why even bother with such a thing when all they have to do is raise it? And they always do.

If this story is true about borrowing to pay off previous debt then we are already bankrupt as a nation.

quote:

NEW YORK (CNNMoney.com) -- Congress has raised the debt ceiling four times in the past two years and will probably have to do it again in the next month.

With the government borrowing record amounts of money, the nation's current debt ceiling of $12.1 trillion will be pierced soon.

That ceiling is the cap on how much the country allows itself to have in debt. In credit card parlance, the ceiling is the U.S. credit limit. At the end of August, U.S. debt totaled $11.8 trillion. That's roughly $349 billion shy of the statutory limit.

The ceiling is meant to serve as a brake on spending because lawmakers would have to think very seriously before they breach the limit and take a very difficult political vote to do so. In reality, lawmakers really don't have a choice but to raise the ceiling and they know it.

Put simply, if they don't raise the ceiling, the country will go into default on its debt. The domino effect would be painful, to say the least.

Treasury bonds would come due but the Treasury wouldn't have the authority to borrow more money to pay holders of those securities.

-http://money.cnn.com/2009/09/16/news/economy/debt_ceiling/index.htm?postversion=2009091610

quote:

Originally posted by RogerCollins:

Why not? Just kick the can down the road and let our grandkids and their kids do without. Most of the Politicians will not be alive to accept the responsibility for the bills we are leaving them. sooner or later, the bank execs and unions have to have enough to satisfy them for a while. Yeah, right!

quote:

Originally posted by greywolfghost:
Just start up the presses and print more money. We're all stupid. That's because we believe the money in OUR pocket is worth something. It's the other guy's money that is inflated and phony - -

Wait until a loaf of bread suddenly costs 10 Bucks!!

Oh that was last week - -

(Think that's a joke? Remember that scene in Grapes of Wrath where the woman says, "This here is a 10 cent loaf!" Well, now bread is $2.50! That means today's Dollar is really worth less than a nickle in real, eatable value!)

quote:

Originally posted by m551sheridan:

quote:

Originally posted by greywolfghost:
Just start up the presses and print more money. We're all stupid. That's because we believe the money in OUR pocket is worth something. It's the other guy's money that is inflated and phony - -

Wait until a loaf of bread suddenly costs 10 Bucks!!

Oh that was last week - -

(Think that's a joke? Remember that scene in Grapes of Wrath where the woman says, "This here is a 10 cent loaf!" Well, now bread is $2.50! That means today's Dollar is really worth less than a nickle in real, eatable value!)

I was just going to say "has anybody noticed how expensive stuff at the stores has become"?

quote:

Originally posted by RogerCollins:

Funny thing about inflation, it hits the poorest and most vulnerable in our nation the worst. And the ironic part is most of them voted for for the people who are perpetrating this mess on us.