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If US Defaults, Obama Could Be Impeached

Incompetence is not a "high crime or misdemeanor."
 
We are not going to default on anything. We can quite easily service the debt. The media is a collective bunch of tools.

And as I type this Obama is coming on one more time to scare the shit out of everybody.
 
yeah, we wouldn't technically default, even if the debt ceiling isn't raised.
 
TheShot said:
yeah, we wouldn't technically default, even if the debt ceiling isn't raised.
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Explain this. How i understand it is that we have the cash to support 60% of our obligations (including servicing our debt). Therefore we would have to not fund essentially 40% of our current obligations. If so that means we are going to have to make decisions on which 40% we do not want to fund.

Is that accurate? If not please explain.
 
Wrangor said:
Explain this. How i understand it is that we have the cash to support 60% of our obligations (including servicing our debt). Therefore we would have to not fund essentially 40% of our current obligations. If so that means we are going to have to make decisions on which 40% we do not want to fund.

Is that accurate? If not please explain.
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i was referring to the debt specifically. the creditors get paid first--we're not going to default on our loans.

you are correct that we could face some decisions re: domestic spending priorities, although there are a lot of analyses suggesting that, essentially, the government can move some money around to cover everything for a while. (there's a more technical way to say this.)

note: none of this should be read as an argument in favor of not raising the limit. we need to get it done, one way or another, particularly given rippling the credit implications.
 
Who decides which debts are paid, and which ones we default on? Assuming we don't want to move any money? If that is the Obama administration, I simply wouldn't pay anything that hits the Republicans the hardest. Is it Geithner that makes that call?
 
Additionally if we don't raise our credit limit, and we show that we can only support 60% of our debts, isn't the lowered credit rating a bygone conclusion? This would subsequently raise our rates on the money we have already borrowed or which we will need to borrow in the future, which worsens our deficit. Seems to me like we would be shooting ourselves in the foot to spite our shoulder.
 
This is why the Dems are up in arms...they know that when it comes down it, it's going to be their pet spending programs that get cut, not defaulting on loans.

They're trying to put it all on the GOP, but if it came down to it, this is the most likely result of not getting a deal done.

Ask the DFL in Minnesota how this worked for them. People in the state were and are pretty much pissed at everyone from what I can tell.
 
Wrangor said:
Who decides which debts are paid, and which ones we default on? Assuming we don't want to move any money? If that is the Obama administration, I simply wouldn't pay anything that hits the Republicans the hardest. Is it Geithner that makes that call?
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the decision has been portrayed as an executive one, with Obama consulting with TG.

it was proposed that Obama could punt, and claim that since Congress allocated the money, they need to decide what doesn't get paid. but that's not going to happen, and it's hard to see how it would even work.
 
KanhojiAngre said:
This is why the Dems are up in arms...they know that when it comes down it, it's going to be their pet spending programs that get cut, not defaulting on loans.

They're trying to put it all on the GOP, but if it came down to it, this is the most likely result of not getting a deal done.

Ask the DFL in Minnesota how this worked for them. People in the state were and are pretty much pissed at everyone from what I can tell.
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Pet programs like Social Security, Medicare and Medicaid? Yeah I can see why there would be no reason to be concerned about not funding those fully.
 
Wrangor said:
Pet programs like Social Security, Medicare and Medicaid? Yeah I can see why there would be no reason to be concerned about not funding those fully.
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They know there have to be cuts in expenditures, and if not there, then you're really just pissing up a rope. Everyone knows that. They just want to hang them on the GOP and hang them out to dry.
 
Wrangor said:
Pet programs like Social Security, Medicare and Medicaid? Yeah I can see why there would be no reason to be concerned about not funding those fully.
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When do you HOPE to start receiving social security and medicare? Just curious...
 
DirkTheDeac said:
When do you HOPE to start receiving social security and medicare? Just curious...
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I HOPE to receive SS and Medicare whenever the government deems it necessary. I am not sure about when Medicare kicks in right now to be honest, but I would hope that i am not eligible to receive SS until I am about 70 (I am 31 right now). I think the eligible age should be pushed back to 70 over a 10-20 year period. But that doesn't mean that those eligible for both of these items now shouldn't be fully funded. People are currently living off both of these. I am not, so scaling both of these back in the future are fine (and actually preferred) with me. Not paying our OBLIGATIONS to those we have currently promised to provide for, is unacceptable.

We have obligations, you can't pull the rug out from under those people counting on us. In addition we have debts to pay that cannot wait. That is why we need to raise the debt ceiling. Not raising the debt ceiling doesn't get rid of our obligations. It simply passes them down the road with increased interest. If you don't pay your credit card bill at the end of the month you didn't just save yourself money, you just increased your debt. I like the 4/1 (cuts/tax increase) model. Cut government spending by 4 trillion, create a new upper tax bracket and a few other tax items and lets start to move forward.

The Republicans are campaigning just as much as Obama throughout all of this, so any holier than though from the right is completely hypocritical. It is all a campaign....
 
Wrangor said:
I HOPE to receive SS and Medicare whenever the government deems it necessary. I am not sure about when Medicare kicks in right now to be honest, but I would hope that i am not eligible to receive SS until I am about 70 (I am 31 right now). I think the eligible age should be pushed back to 70 over a 10-20 year period. But that doesn't mean that those eligible for both of these items now shouldn't be fully funded. People are currently living off both of these. I am not, so scaling both of these back in the future are fine (and actually preferred) with me. Not paying our OBLIGATIONS to those we have currently promised to provide for, is unacceptable.

We have obligations, you can't pull the rug out from under those people counting on us. In addition we have debts to pay that cannot wait. That is why we need to raise the debt ceiling. Not raising the debt ceiling doesn't get rid of our obligations. It simply passes them down the road with increased interest. If you don't pay your credit card bill at the end of the month you didn't just save yourself money, you just increased your debt. I like the 4/1 (cuts/tax increase) model. Cut government spending by 4 trillion, create a new upper tax bracket and a few other tax items and lets start to move forward.

The Republicans are campaigning just as much as Obama throughout all of this, so any holier than though from the right is completely hypocritical. It is all a campaign....
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I agree with your solution, this has to be addressed from both sides in order to create a sustainable budget.

Politicians are always campaigning; always doing what will best help them get re-elected regardless of what is actually good for the country. I think what bothers some Republicans is that Obama tried to depict himself as above the fray during 2008 while it was plainly obvious, to those of us not on the Hope and Change bandwagon, that he was the same sort of politician we have always had.
 
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If you are 31 and there is no major restructuring of the entitlement programs you have just about a 0% chance of ever seeing a dime.

And for what it's worth, the Ryan plan does not end social security. The media can keep bleating away but all they have to do is read the plan. It's not three pages but it's not the Holy Bible either.

But I do agree with you. This has more to do with political posturing than dealing with an imminent crisis.
 
God, this just pisses me off. I wish the Republicans and Democrats would just take their heads out of their asses and get this shit taken care of.

I honestly hate my countries political system in times like these.
 
TWDeac said:
God, this just pisses me off. I wish the Republicans and Democrats would just take their heads out of their asses and get this shit taken care of.

I honestly hate my countries political system in times like these.
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Elections matter.
 
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