U.S. May Have Way to Cover Bills After Deadline, for a Week

[cal04]

Source: NY Times

It turns out the federal government is sitting on some extra cash.

Thanks to an inflow of tax payments and maneuvering by the Treasury Department, the government can probably continue to pay all of its bills for several days after Aug. 2, providing potentially critical breathing room for Congress to raise the debt ceiling, according to estimates by several Wall Street banks and a Washington research organization.

The consensus is that the government will not run short of money until Aug. 10, when it would be unable to cut millions of Social Security checks without borrowing more money.

President Obama has described Aug. 2 as a “hard deadline” for Congress to increase the maximum amount that the government is allowed to borrow.



Read more: http://www.nytimes.com/2011/07/27/us/politics/27date.html?hp

[Fearless]

1. Is it sad that this is the best news about the debt ceiling yet?

[CleanGreenFuture]

2. Of for God's sake! Not yet another WEEK of this shit? They've been kicking

the can down the road for weeks already.

Just get it the fuck over with!

[sarcasmo]

3. They are ignoring the real issues

Jobs.

[unkachuck]

4. "...providing potentially critical breathing room for Congress to raise the debt ceiling,..."

....the problem is, they don't want to raise the debt ceiling....Geithner needs to get their attention....

....tomorrow, Geithner should make a speech prioritizing spending August 3rd....1) all Social Programs paid first, 2) military obligations next, 3) then everything else, 4) lastly, interest on the debt, if there's any money left....

....then let wall street, with their green little dicks, go to work on the Tea Partys' collective ass....

[Volaris]

21. I was wondering about that...

is there a specific order in which the Treasury MUST make payouts? Or is that COMPLETELY up to Timmeh, on orders from how The President wants it done? If no, then... yeah, why not let Wall Street kick the "Baggers around for us for a week, those guys LOVE to rattle their sabers for their OWN ends, well now they can rattle them for OURS...

[blank space]

5. Irrelevant,

the rest of the world is looking at Aug 2nd - and the US will be taken out the back of the shed and smashed to bits.

It is already happening, the US Dollar is going south like a bunker a buster - when August 2nd comes its going to go thermo.

No matter WHAT comes out of this the US is going to get absolutely poleaxed by international markets - the reason being the deficit reduction policy of BOTH sides of the house is simply wrong. The rest of the planet is putting money in - huge quantities are going into spending all over the globe - the US needs a stimulus. Cutting spending now is a sure as hell sign that your are not serious about rectifying the economy.

While Americans may think they can legitimately debate Keynesian economics and trickle down theory as though it were a valid option, the rest of the world is simply staring wide eyed and in absolute HORROR.

Say good bye to Kansas.

[Psephos]

6. But why do they have to borrow money for SS checks when SS is fully funded?

Does that mean they're admitting there actually ISN'T any money in the "trust funds"?


:eyes:

[ProgressiveEconomist]

22. Cash accounting for Social Security is easier to understand. Follow the money at LINK

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=439&topic_id=1570607&mesg_id=1572882

For decades since 1983, Treasury collected $2.7 trillion more in FICA than it paid out to retirees and the disabled. But now Congressional appropriations and/or new debt auctions are required to pay back the Trust Fund. The shortfall is under $50 billion for this year, but soon will grow to hundreds of billions of dollars a year. And the future yearly shortfall is known with accuracy.

Bill Clinton used budget surpluses to pay off other US debts, leafing room for more new debt auctions to pay these future FICA shortfalls. But Debya squandered them, even though his handlers knoew what turmoil Dubya's spending spree would create.

[OmahaBlueDog]

7. US may have way to cover bills after deadline, for week

Source: NYT via MSNBC

WASHINGTON — It turns out the federal government is sitting on some extra cash.

Thanks to an inflow of tax payments and maneuvering by the Treasury Department, the government can probably continue to pay all of its bills for several days after Aug. 2, providing potentially critical breathing room for Congress to raise the debt ceiling, according to estimates by several Wall Street banks and a Washington research organization.

The consensus is that the government will not run short of money until Aug. 10, when it would be unable to cut millions of Social Security checks without borrowing more money.

President Obama has described Aug. 2 as a “hard deadline” for Congress to increase the maximum amount that the government is allowed to borrow.



Read more: http://www.msnbc.msn.com/id/43904136/ns/politics-the_new_york_times/

[nadinbrzezinski]

8. Rating agencies are not gonna buy this

[OmahaBlueDog]

11. NPR had a very interesting report on that today

They had a former Treasury official and a representative of PIMCO. Basically, they explained that while the default would be a huge problem, the downgrade (in the absence of a default) -- not so much. They argued that Japan had a downgrade of its soverign debt in (IIRC) 2002 and it was a major yawn for the bond markets.

[nadinbrzezinski]

12. It is the default that is the problem

in that they are correct. The downgrade will affect us due to ... interest rates. They WILL go up.

But that is the minor thing in this whole thing actually.

[OHdem10]

9. I can hear the Rw Megaphone now. See we told you they could

change the date. SS is just a scare tactic.

[MADem]

10. If we didn't pay Congress, that might give them a few extra minutes... nt

[freshwest]

13. I think the only ones living paycheck to paycheck are Kucinich and Paul. The rest are milionaires;

The Tea Baggers who aren't millionaires yet, will be as soon as they report back to their corporate masters.

[MADem]

14. I think even those two are doing pretty well.

Doesn't DK's wife have a bit o' money? And she's working too. That'll keep the wolf from the door. I can't remember how much in the way of financial records he released the last time he ran for President.

Ron Paul is already a millionaire many times over: http://latimesblogs.latimes.com/washington/2008/05/ronpaulgold.html

As for those Tea Baggers, it would do them good to have to actually work for a living, for a change. I think they're getting too used to spouting shit and getting paid to do so.

[freshwest]

24. Thanks for the correction. The only one i'd read about was DK. Said to have the lowest net worth.

A teabag must have added RP to make him a 'man of the people.'

You know, like Glenn and Rush and Bill O'Really.

And the rest of the GOPigs.

It's amazing to see the debauchery.

[No Elephants]

15. Most in the Senate would never notice their petty cash drawer had run a little low.

Some House members, like my Rep, might.

[MADem]

17. That may be true, but the rich get rich because they're cheap, mostly.

JFK never paid for anything, never carried cash, even before he became President.

[No Elephants]

16. Exactly what Republicans have been saying all along--August 2 is not really a hard deadline.

I wonder if all this hullaboo about possible default has not been damaging to potential borrowing in itself?

[iamtechus]

18. My monthly SS payment should arrive in my bank account on Aug. 10

For me, that is a HARD DEADLINE.

I wonder how long I should wait before seizing gov. property if it doesn't arrive? The IRS gave me 90 days once. That's probably reasonable.

[RebelOne]

23. My SS check is credited to my bank account

on the 3rd Wednesday of the month. And it damn well better be there.

[Auntie Bush]

25. My SS check is deposited on the 3rd, so I won't worry about August.

but if it isn't there by Sept or is cut in any way I'll be ruined! All my bills are paid electronically the first week of the month so SS sure better be there or many bills will bounce.:grr:

[OverDone]

19. Feel much better

Knowing that we have a extra week of money... Yaaaaaaaa!

[leftynyc]

20. That doesn't address the

downgrade in our credit rating if we pass 8/2 without a deal. Of course we'll find a way to cover our bills - families shift around their finances all the time when needed - but with a downgrade comes some real problems.