4Reader: Govt Can Only Pay 60% Bills.

4Reader: Govt Can Only Pay 60% Bills.

Posted in the Columbus Forum

Enzyte Bob

Columbus, OH

#1 Jan 15, 2013
UNSUSTAINABLE: Without Borrowing, the Government Can Only Pay 60 Percent of Its Bills.

Without Borrowing, the Government Can Only Pay 60 Percent of Its Bills
Peter Suderman|Jan. 14, 2013 5:03 pm

Hereís a telling fact about our current budget situation: If Congress does not agree to raise the debt limit, thus making it possible for the federal government to borrow again once the current $16.4 trillion limit is hit, the federal government will only be able to pay about 60 percent of its bills. Thatís according to the Bipartisan Policy Center, which has published an apocalyptic report in advance of the debt ceiling showdown warning of the consequences should Congress fail to raise the debt ceiling later this year.

Hereís a telling fact about our current budget situation: If Congress does not agree to raise the debt limit, thus making it possible for the federal government to borrow again once the current $16.4 trillion limit is hit, the federal government will only be able to pay about 60 percent of its bills. Thatís according to the Bipartisan Policy Center, which has published an apocalyptic report in advance of the debt ceiling showdown warning of the consequences should Congress fail to raise the debt ceiling later this year.

Forget the coming showdown for a minute and focus on the first number: The BPC report wants readers to understand how bad it would be if Congress failed to raise the debt limit. But hereís another way to think about it: Without the option to borrow, the government can only finance 60 percent of its operations and obligations in the short term. More than a third of that spending goes right onto the national credit card.

That sort of reliance on borrowing is why annual deficits are so high. Itís why total federal debt levels keep growing. It's why the Congressional Budget Office describes our debt trajectory as "unsustainable." Itís why it is so important to focus on spending ó not just on our long-term entitlement obligations, but now. This year. Weíre already spending so much that in near-term, 40 percent of it has to go on the credit card. Thatís how utterly dependent on borrowing, and how utterly unable to reduce spending, our federal government already is.

Lots of the attention in Washington right now is focused on what President Obama will do next ó specifically whether heíll negotiate over raising the debt limit. He says he wonít, but heís said that before and never followed through. Republicans, meanwhile, say a no-conditions debt limit hike is a no-go.

Itís an impasse. And it makes for juicy political drama. But in some ways itís a distraction from the real spending and borrowing problem that got us into this mess. Because the bigger, more important question isnít just what Obama and Republicans in Congress will do this time. Itís what, if anything, theyíll do to better manage federal financing ó and prevent us from getting into a debt-driven hole like this again.
Spookhere F trolls

Detroit, MI

#2 Jan 15, 2013
Enzyte Bob wrote:
UNSUSTAINABLE: Without Borrowing, the Government Can Only Pay 60 Percent of Its Bills.
Without Borrowing, the Government Can Only Pay 60 Percent of Its Bills
Peter Suderman|Jan. 14, 2013 5:03 pm
Hereís a telling fact about our current budget situation: If Congress does not agree to raise the debt limit, thus making it possible for the federal government to borrow again once the current $16.4 trillion limit is hit, the federal government will only be able to pay about 60 percent of its bills. Thatís according to the Bipartisan Policy Center, which has published an apocalyptic report in advance of the debt ceiling showdown warning of the consequences should Congress fail to raise the debt ceiling later this year.
Hereís a telling fact about our current budget situation: If Congress does not agree to raise the debt limit, thus making it possible for the federal government to borrow again once the current $16.4 trillion limit is hit, the federal government will only be able to pay about 60 percent of its bills. Thatís according to the Bipartisan Policy Center, which has published an apocalyptic report in advance of the debt ceiling showdown warning of the consequences should Congress fail to raise the debt ceiling later this year.
Forget the coming showdown for a minute and focus on the first number: The BPC report wants readers to understand how bad it would be if Congress failed to raise the debt limit. But hereís another way to think about it: Without the option to borrow, the government can only finance 60 percent of its operations and obligations in the short term. More than a third of that spending goes right onto the national credit card.
That sort of reliance on borrowing is why annual deficits are so high. Itís why total federal debt levels keep growing. It's why the Congressional Budget Office describes our debt trajectory as "unsustainable." Itís why it is so important to focus on spending ó not just on our long-term entitlement obligations, but now. This year. Weíre already spending so much that in near-term, 40 percent of it has to go on the credit card. Thatís how utterly dependent on borrowing, and how utterly unable to reduce spending, our federal government already is.
Lots of the attention in Washington right now is focused on what President Obama will do next ó specifically whether heíll negotiate over raising the debt limit. He says he wonít, but heís said that before and never followed through. Republicans, meanwhile, say a no-conditions debt limit hike is a no-go.
Itís an impasse. And it makes for juicy political drama. But in some ways itís a distraction from the real spending and borrowing problem that got us into this mess. Because the bigger, more important question isnít just what Obama and Republicans in Congress will do this time. Itís what, if anything, theyíll do to better manage federal financing ó and prevent us from getting into a debt-driven hole like this again.
Then the proper thing to do is not pay welfare fire all BATF, DEA, Molesters at the TSA the Education department and HUD. Then start fine tuning the remaining. Cut security details for congress and Obama

“Larchmont's Leading Citizen”

Since: Dec 12

Hilliard, OH

#3 Jan 15, 2013
Spookhere F trolls wrote:
<quoted text>
Then the proper thing to do is not pay welfare fire all BATF, DEA, Molesters at the TSA the Education department and HUD. Then start fine tuning the remaining. Cut security details for congress and Obama
Get out out of the loan business, too...housing, education, SBA, the lot. And then watch the liberal heads explode when the cost of things like tuition start dropping.

Since: Oct 10

Location hidden

#4 Jan 15, 2013
Hugh Victor Thompson III wrote:
<quoted text>Get out out of the loan business, too...housing, education, SBA, the lot. And then watch the liberal heads explode when the cost of things like tuition start dropping.
I more than agree. And while at it, get out of healthcare/health insurance and flood insurance business too. Require all members of congress to travel commerically and put Biden back on SEPTA. Send the FEMA funds to the States. They know better how to prepare for an emergency in their own state than the federal government does. Response will be better and faster than we've ever seen.

Tell me when this thread is updated:

Subscribe Now Add to my Tracker

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Columbus Discussions

Title Updated Last By Comments
Robert Krutko's new nickname, TURDKO CRAPKO OR ... 1 hr lawman 37
News Group raising funds to set up kosher pantry at ... 2 hr Pope Che Reagan C... 36
They're Shooting News Reporters On Live TV 3 hr They cannot kill ... 41
Poll Who Do You Support For President 4 hr They cannot kill ... 416
Deal with the Devil 5 hr Seriouslady 17
Poll Panty hose vs bare skin What is your preference? 7 hr Pam 231
Hey Big Johnson! 7 hr Pam 2
More from around the web

Personal Finance

Columbus Mortgages