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#31 | |
Sapere Aude
Join Date: Jun 2001
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Quote:
That actually corroborates the data that I posted. It doesn't refute it at all, I don't dispute any of these numbers. The CBO's figures look right. That doesn't mean that we'll default. We would have to choose to prioritize default in order for it to happen. And by "we" I mean Obama would specifically have to say "Don't pay the interest - let's default instead."
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Ehyeh asher ehyeh. Free Predictions: 2008: http://www.chiefsplanet.com/BB/showt...1&#post3690801 2012: http://www.chiefsplanet.com/BB/showt...43#post9079043 2016: http://www.chiefsplanet.com/BB/showt...8#post12475268 |
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#32 | |
Administrator
Join Date: Aug 2000
Location: Austin
Casino cash: $29212
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You don't know what the term default means in this context and you obviously don't know what obligated payments are. These are terms with clear definitions that apply to the discussion. Educate yourself then come back.. or better yet don't come back but please please please educate yourself before you embarrass yourself any further. |
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#33 | |
Rookie
Join Date: Oct 2013
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#34 | |
Rookie
Join Date: Oct 2013
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#35 | |
Rookie
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#36 | |
Administrator
Join Date: Aug 2000
Location: Austin
Casino cash: $29212
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Quote:
I bolded the part that is correct in this regard (although the "principal" is simply bonds reaching maturity which doesn't matter since you simply issue more bonds to cover that). The US didn't make a "loan" to defense contractors, nor did it loan money to Food Stamp recipients nor does it loan money to the people who work for the FDA. The LOAN we would default on (should Obama chose to) are BONDS (and you can maybe stretch and throw in Social Security) we have plenty of money to make these payments. What you are talking about are making payments to other programs and services that are NOT OBLIGATED payments. Just because you REALLY WANT to keep playing paintball or giving to charity doesn't make it an OBLIGATION requiring the credit card company to raise your limit. Last edited by AustinChief; 10-15-2013 at 05:42 PM.. |
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#37 | |
Administrator
Join Date: Aug 2000
Location: Austin
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Bonds are HOW we as a country borrow money. The debt limit is a limit on how many outstanding bonds we can have. When a bond reaches maturity and has to be paid the government can simply issue more bonds to replace them. Since you won't educate yourself it looks like we will have to help you... Let's say our debt limit is $1000. We issue $1000 worth of bonds. When some of those mature, let's say $200. We have to pay that $200 BUT WAIT we are now at $800 of our $1000 limit and can issue $200 more in bonds to go back up to the limit and it is a net loss of zero. It's the INTEREST that matters. Interest that is at all time historically low levels regardless of what Cosmo and the scare police would have you believe. Notice how he has bowed out after trying to claim our debt downgrade caused so many problems in that regard. |
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#38 |
Sapere Aude
Join Date: Jun 2001
Casino cash: $18037
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Dude coud you give me a sorce on how bonds work? I don't beleeve you.
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Ehyeh asher ehyeh. Free Predictions: 2008: http://www.chiefsplanet.com/BB/showt...1&#post3690801 2012: http://www.chiefsplanet.com/BB/showt...43#post9079043 2016: http://www.chiefsplanet.com/BB/showt...8#post12475268 |
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#39 | |
Administrator
Join Date: Aug 2000
Location: Austin
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Quote:
http://lmgtfy.com/?q=bonds+for+dummies |
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#40 | |
BAMF
Join Date: Oct 2010
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#41 | |
Rookie
Join Date: Oct 2013
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finance.townhall.com/columnists/politicalcalculations/2013/01/21/who-really-owns-the-us-national-debt-n1493555/page/full But you can see US entities own 68% of the debt. And this is for fiscal year 2012. Social Security owns the second major chunk totaling around 2.6 Trillion. Another question would you buy corporate bonds if they defaulted recently on their previous bonds? In other words: don't pay back. Would you like to own T-bills? They pay no interest compared to other loans and bonds because they are supposed to be safe, I mean the chances of a government defaulting are slim to none, right? So after they default people gonna buy them up like hotcakes is what you are saying ![]() |
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#42 |
Debunking your bullshit
Join Date: Aug 2002
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#43 | |
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Join Date: Dec 2002
Location: Iowania
Casino cash: $47396339
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The endeavor that would be needed to make prioritization possible would take a lot of time and money, and no president or congress is ever going to spend the money to make that happen because a default is a stupid option that should not be seriously explored, anyway.
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#44 |
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Join Date: Dec 2002
Location: Iowania
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If something doesn't happen by the 17th (or whatever later date when we actually default, it is probably somewhat later than the 17th), I think what'll happen, especially since we can not prioritize, is Obama will probably invoke the 14th amendment and ignore the debt ceiling. I previously thought he swore he wouldn't, but when you carefully parse the statements he and anyone else from the white house made on it, they never really took it off the table.
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#45 |
Supporter
Join Date: Aug 2000
Location: Spink, SD
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We throw $400,000,000,000.00 of interest into a burn barrel every year and now all of a sudden we're worried about interest payments?
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