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Overthrow the banksters...

(Reuters) - With the government about to hit its $14.3 trillion debt limit, Treasury Secretary Timothy Geithner has warned of "catastrophic" consequences and a new recession if Washington is not able to borrow more.

A divided Congress has run out of time to raise the debt limit before Monday's deadline, forcing Geithner into an emergency reallocation of funds so the government can meet its obligations, including payments to Treasury bondholders.

Those measures are only expected to give the government until August 2 before it will start defaulting on payments including those on Treasury debt, an event that could trigger chaos in world financial markets.

"A default would inflict catastrophic, far-reaching damage on our nation's economy, significantly reducing growth and increasing unemployment," Geithner said in a letter, dated Friday, to Democratic Senator Michael Bennet.

The Obama administration and lawmakers are battling over how to curb the mounting U.S. debt, with Republicans refusing to increase the debt limit without deep spending cuts.

In some of his most stark language to lawmakers so far, Geithner said a default or missed payments would not only increase borrowing costs for the U.S. government but also for average Americans, businesses and local governments.

"An increase in Treasury rates would make it more costly for a family to buy a home, purchase a car or send a child to college," he said. "It would make it more expensive for an entrepreneur to borrow money to start a new business or invest in new products and equipment."

The world's biggest economy is recovering only gradually after the 2007-09 financial crisis but some 13.7 million Americans are out of work and higher gasoline and food prices are threatening to slow the recovery.

If Congress does not increase the borrowing cap by August, Geithner will be forced to start choosing which payments to make first.

Missing or delaying payments on a host of obligations, including those to businesses for goods and services and bond payments to investors, would result in a massive and abrupt cut in federal spending and aggregate demand, the letter warned.

"The abrupt contraction would likely push us into a double-dip recession," Geithner said.

The U.S. government bond market has so far remained calm about the risk of a default. But Geithner and Federal Reserve Chairman Ben Bernanke have repeatedly urged Congress to act quickly to raise the debt limit.

The U.S. government is borrowing approximately $125 billion per month. As of Thursday, the country was $38 billion below the debt ceiling.

http://www.reuters.com/article/2011/05/14/us-usa-budget-debt-idUSTRE74A8AW20110514
 

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I like the idea that all federal and state workers take a 10 percent pay cut to balance the budget.

Private industry would do that in a heartbeat.
 

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I like the idea that all federal and state workers take a 10 percent pay cut to balance the budget.

Private industry would do that in a heartbeat.
:agree:

None exempted. None.
 

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Including everyone on Govt handouts. Minus real SS. The only people not in line for a cut should be the people that paid in. 10% cut in every govt program. I'm in for that.
 

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I like the idea that all federal and state workers take a 10 percent pay cut to balance the budget.

Private industry would do that in a heartbeat.

How about a 50% cut?

Everytime I have to go through the offices of our state guberment, half the peiople are sitting on their arse, reading the newspaper or a book.

This is not bull$h!t. I believe the guberment really could run with onehalf the workers in most fields, especially the pencil pushers
 

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:agree: Is there ANYONE who doesn't believe that half of all government spending is waste and abuse?? And I'm including the military and corporate subsidies in that!

There are GOOD compromise solutions to every one of our national problems but we've been taking the lazy way out for decades. :spanked:
 

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How about a 50% cut?

Everytime I have to go through the offices of our state guberment, half the peiople are sitting on their arse, reading the newspaper or a book.

This is not bull$h!t. I believe the guberment really could run with onehalf the workers in most fields, especially the pencil pushers
:agree:

bigtime micromanaging waste.....redundant jobs, people, low work output per employee

The problem is...

Now is the wrong time to lay off millions of govt peep.
It would snowball into more forclosures, faster home depreciation, credit crunch, economic gap, reduced middle class spending...

The best option is pay cuts, since hc and retirement cuts get too much flack.....

Paycuts keep people employed and gradually spread out the burden,.............. and can be dialed up or down according to need.
 

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:agree:

bigtime micromanaging waste.....redundant jobs, people, low work output per employee

The problem is...

Now is the wrong time to lay off millions of govt peep.
It would snowball into more forclosures, faster home depreciation, credit crunch, economic gap, reduced middle class spending...

The best option is pay cuts, since hc and retirement cuts get too much flack.....

Paycuts keep people employed and gradually spread out the burden,.............. and can be dialed up or down according to need.
:agree:

Rapid job slashing is irresponsible and would just compound the whole problem.
 

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If cutting the "problem" will create a bigger problem... wouldn't the solution be "hiring" more of those thought to be the problem ?
 
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