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That would be Ben Bernanke and the Fed bidding down that rate.
That's what the QE programs are all about.
In March 2011 the Fed became the largest owner of Treasuries.
Under QE2 the Fed pledged to buy $600 billion worth of treasury bonds to keep interest rates low and help spur lending and economic growth. $600 billion is a fraction of the debt.
The rate is determined by supply and demand. If the world had no confidence in the U.S., our debt rate would skyrocket. That's what happens in every country.
No you can't. All discretionary spending could be cut and that still wouldn't leave enough to pay for the military and mandatory spending.
Not sure where you got your accounting degree from, but ask for a refund. They couldnt create ADDITIONAL debt, but they could continue to issue treasuries to pay off current treasuries coming up for renewal, and they would continue to receive revenues. Its not like revenues would cease to be collected.
When this economy tanks responsibility will lay firmly on the shoulders of the drunken spending Senate and the war mongering, energy production stopping, job killing POTUS B.H. Obama!
The Progressive spend-a-holics are strung out on the American taxpayer's credit card worse than a meth addict seeking his/her next fix. Disgusting that anyone supports their habits and lies anymore.
The House did the right thing by sending a clear message that the taxpayers refuse to enable a fiscally irresponsible Senate and POTUS. Time to get down to the nitty gritty serious business of slashing the spending to the bone as Paul Ryan and ric Cantor have been pushing since November 2010.
Under QE2 the Fed pledged to buy $600 billion worth of treasury bonds to keep interest rates low and help spur lending and economic growth. $600 billion is a fraction of the debt.
The rate is determined by supply and demand. If the world had no confidence in the U.S., our debt rate would skyrocket. That's what happens in every country.
The Fed owns near $3 trillion of Treasury debt. That $600 billion is JUST for QE2.
The Fed is the buyer of last resort to prevent rates from going up. No bidders means higher rates to attract bidders. That's when the Fed steps in.
“This country cannot be allowed to default on its financial obligations for the first time in history...this would be unthinkable.†-- Ronald Reagan, 1987
The U.S. is not Greece. As of now, the world has faith in our debt, that's why they bid down the ten-year rate to 3.11% If the Republicans play Russian roulette with the debt ceiling it will display that the Republicans turned the country into a banana republic.
While the Republicans crow about being fiscally responsible, they completely rule out returning tax-rates on millionaires to the Clinton era rates.
Or ending subsidies for oil companies that are making record profits.
What this is a power play by the Republican Party to secure even more tax cuts for their corporate buddies while balancing the budget on the backs of other Americans.
It's the same tactic that Republican state legislatures are pushing through.
According to the Wall Street Journal (http://www.smartmoney.com/invest/markets/your-questions-answered-about-reaching-the-debt-ceiling-1305579665750/ - broken link), "A default would occur after the emergency measures are exhausted and it runs out of cash to pay its bills. Treasury officials say that would occur Aug. 2, if Congress does not raise the debt ceiling before then. They say that could mean stopping or limiting not only interest payments to debt holders, but also Social Security and Medicare payments, unemployment benefits, tax refunds and money owed to government contractors."
"The government owns a lot of valuable stuff it could sell, including about $400 billion in student loans, $375 billion in gold, and $142 billion in stakes of companies it rescued during the financial crisis. But the Treasury says selling off many of those assets would cost taxpayers money and could destabilize companies, markets and even the financial system. So Treasury officials have ruled this out as an option."
"Treasury says it could cause another financial crisis and economic recession. The value of Treasurys used as collateral in contracts would plummet, and yields which move the opposite direction would rise. Because Treasury yields are used as the benchmark for other interest rates, consumers and businesses would face higher rates for mortgages, credit cards, car loans, student loans, and commercial credit. Some observers have questioned the dire predictions."
Nice. You say you love the country but want to destroy its economy.
Wow, I read all of that and it doesnt say how it would destroy the economy..
Quote:
Originally Posted by Winter_Sucks
Right-wingers and Tea Party folks either have gone off the deep end or don't understand the debt ceiling process. That said, the ceiling will get raised, but cuts will be attached. I'm fine with that. They are clueless if they think not raising the debt ceiling is a rational option.
No one is suggesting we never raise the debt ceiling again..
Quote:
Originally Posted by MTAtech
“This country cannot be allowed to default on its financial obligations for the first time in history...this would be unthinkable.” -- Ronald Reagan, 1987
The U.S. is not Greece. As of now, the world has faith in our debt, that's why they bid down the ten-year rate to 3.11% If the Republicans play Russian roulette with the debt ceiling it will display that the Republicans turned the country into a banana republic.
While the Republicans crow about being fiscally responsible, they completely rule out returning tax-rates on millionaires to the Clinton era rates.
The US Government has defaulted on our debt 4 times already.. Yep, we're still here..
nothing but left wing fear mongering.. THE WORLD WILL END..
Give it a break.. I rent to the government and I'm willing to forgo hundreds of thousands in rental income for a period of time if it means financial stability. Continuing to increase the deficits to no end is NOT financial stability.. You guys should be ashamed of yourself for not understanding elementary math.
You're aware that if we don't raise the debt ceiling, paying the interest on the debt alone will skyrocket?
Not raising the debt limit would actually increase our debt. A better plan, which is what the GOP is doing, is to attach spending cuts and reforms to a debt limit increase.
What the Hades do you think they've been trying to do?
This symbolic vote tonight pushed away all Senate Progressive excuses, period. Limousine liberals. Harry Reid better be paying attention. He is in a corner and out of excuses. Of course look for him to frighten the seniors, again. He cares not what is in the best interest of this country, only in securing Democrat Senate seats in 2012 by doing nothing and allowing this country to collapse.
What the Hades do you think they've been trying to do?
This symbolic vote tonight pushed away all Senate Progressive excuses, period. Limousine liberals. Harry Reid better be paying attention. He is in a corner and out of excuses. Of course look for him to frighten the seniors, again. He cares not what is in the best interest of this country, only in securing Democrat Senate seats in 2012 by doing nothing and allowing this country to collapse.
Why do you think I said, "which the GOP is trying to do." I literally just said that is what they are doing and then you smack your forehead like I'm the one who lacks reading comprehension.
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