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Old 10-16-2013, 04:40 PM   #127
Amnorix Amnorix is offline
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Quote:
Originally Posted by AustinChief View Post
You are correct that if we continue to pay non-obligated payments right up until the 1st we would likely default(I haven't run the numbers to be sure but let's roll with that). That is a CHOICE to make those payments from the 17th to the 1st. Actually it was a choice we already made starting Oct 1st. So if we default it is because we kept paying non-obligated payments up until we had to make our 1st of the month balloon payment on obligations.

I guess. I know that many hedge funds and other big players in the private world have crunched alot of numbers and all agree that by 11/1 we'll be out of money.

The question is what items are truly optional, and what are not. I would think that making, for example, Social Security payments and paying the military aren't in any real sense optional.

I also note that, for example, there are federal wage and hour laws. I have no idea if the federal government itself is exempt from them, but it would seem to me that if the feds failed to pay anyone's salary (or any department's salary) for personnel not furloughed, then they would be inviting a massive and expensive class action.

Quote:
I am not advocating drastic deep cuts btw. I am simply trying to clear up the rash of misconceptions regarding what default actually means and what our true OBLIGATIONS are.
I understand. You're separating debt obligations (obligations to make payments on US government issued bonds) from other obligations (federal workforce pay, etc.). I'm uncertain, however, whether at least some of those other obligations aren't OBLIGATIONS in the sense that you mean. I assume Social Security payments are legal obligations, though it's not on sovereign debt.

Quote:
I am fine with a debt increase right now since we have no plan in place to handle the lack of one. If I were in charge of this mess I would have made ONE demand and one only. I would increase the debt limit IF we agree to put a system in place to allow HR807 or something similar to effectively be put in place within the next 3 years.
Agreed that we need a path to fiscal sanity. What else can you say?
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