U.S. ratings downgrade imminent

[SMS]

The government's spending pace in 2013 has been $13.3 billion a day while tax receipts have averaged $10.8 billion, according to Capital Economics. That leaves a daily shortfall of $2.5 billion. Treasury will have to start dipping into the nearly $36.5 billion in reserves it is holding to cover that shortfall, meaning the government can still run for about 14 more days. That, though, is probably too optimistic an outlook. "Because tax revenues fluctuate and spending obligations are not spread out evenly, the Treasury is likely to exhaust its reserves before then," Paul Dales, senior U.S. economist at Capital, said in a report. Looking at the government's schedule of upcoming payments, Dales sees the key dates coming as an Oct. 31 debt interest payment of $6 billion and a $57 billion payment the following day to cover Social Security, Medicare, military and income support payments. There's also a big $15 billion payment due Nov. 15 that Treasury has "no chance whatsoever of meeting," he said.

http://www.cnbc.com/id/101113997


could get interesting.

Interesting indeed, but it is still important to note the difference between not meeting our spending obligations and not servicing our debt.

We bring in enough tax revenue to service our debt payments....everything else, in the end, is not mandatory....therefore there is no default.

 

[Driller]

Someone should tell this idiot:



America's "sterling" credit rating? If I had America's "sterling" credit rating, I wouldn't be eligible to borrow a freaking pencil.

This reminds me of when an employee asked me to co-sign a note for a new truck. "Let me get this straight, the people that are in the business of loaning money won't loan you money but they'll loan it to me to give to you as long as I promise that I will pay it back?"

Bring it on, the US needs a reality check.

 

[Shadowrider]

Guys this is all mental masturbation. The fact is that we have 10 times the revenue coming into the treasury to service our national debt. This has been stated for weeks by certain news sources that are actually practicing journalism. George Will, as much as I like to hate on him, just said on the tube as good as it can be said, "default is a choice". Meaning that if no deal is reached and the debt ceiling is not raised, if we default it is because we CHOSE to do so. The one who would be making that decision is Barack Hussein Obama. Now what I want to know is that if he actually does that, can he now finally at long last, be impeached? 14th Amendment and all?

 

[Hump66]

Some people just want to watch the world burn. Is that too much to ask?

 

[Spata]

Some people just want to watch the world burn. Is that too much to ask?

Beer & Jerky @ my place

 

[Wild Weasel]

Beer & Jerky @ my place

You forgot popcorn, everybody loves popcorn!

 

[Spata]

You forgot popcorn, everybody loves popcorn!

with or without butter?

 

[SoonerBorn]

There's plenty of revenue to pay the interest on our debts. A true default when mean we couldn't do that.

 

[Shadowrider]

with or without butter?

Have both. You know, just in case a few vegans show up.

 

[Wild Weasel]

Your not American if you are no butter.