US Treasury to halt state, local securities sales (to prevent breach of national debt limit)

[UpInArms]

Source: Reuters

WASHINGTON, Sept 21 (Reuters) - The U.S. Treasury on Friday said it would suspend sales of state and local government series securities (SLGS) next week to help prevent the federal government from breaching its statutory debt limit.

The move to close the "slugs" window is the first of several emergency measures the Treasury can take to gain more precise control of federal finances as it nears the $8.965 trillion debt limit.

Read more: http://www.reuters.com/article/bondsNews/idUSWAT00812020070921

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The Outstanding Public Debt as of 21 Sep 2007 at 01:12:25 PM GMT is:


The National Debt on 01/19/2001 was $5,727,776,738,304.64

[Akoto]

1. I know too little about economics, so forgive the dumb question ...

Considering how much we've borrowed, I wasn't aware that we had an established limit on the debt we can accumulate nationally. If we hit that limit, does that mean we can no longer continue to borrow funds for the war? Assuming (probably fantasizing) that they don't find some way to raise that limit, of course.

[htuttle]

3. There is a limit on how much debt the government can accrue and Congress can raise it

When Bush took office it was $5.95 trillion and he has requested that it be raised several times.

[Akoto]

5. Okay, so ...

Lets just say, hypothetically, that Congress refuses to raise the debt limit again. Does that mean that the administration could "hit a wall" and no longer be able to borrow for the war? It's no doubt wishful thinking on my part, but it sounds as though that would quickly put an end to this mess, albeit by way of leaving us with a financial disaster.

[flashl]

12. Remember the Dubai Ports deal that Bush didnt know about?

That's what happened the last time Congress ignored Treasury's request to lift debt ceiling.

[stillcool]

15. are you sure?

http://www.iht.com/articles/2006/02/24/america/web.0224ports.php
Dubai company delays new role at U.S. ports
By David S. Cloud and David E. Sanger
Published: FRIDAY, FEBRUARY 24, 2006

WASHINGTON: The Dubai company at the center of a political furor over its plans to take over some terminal operations at six American ports said Thursday night that it planned to close the deal next week, but that it would "not exercise control" over its new operations in the United States while the Bush administration tried to calm opposition in Congress.

The statement may provide a little time and political breathing room for President Bush, who has appeared stunned at the opposition from Republicans and Democrats alike over the deal involving one of the country's few close Arab allies. But it was not clear how long the company was willing to suspend control over its new American properties, or whether its offer would assuage the members of Congress, governors and mayors who have vowed to block the deal.
---------------------------------
In an effort to calm Congress, the administration released a confidential letter sent on Jan. 6 in which the company committed itself to continuing its participation in a range of American-led initiatives to close gaping security holes in ports around the world. This included an agreement with the Department of Energy a year ago to use new equipment in Dubai's own seaports intended to sniff out radioactive shipments.

Among the ports in the United States where the company hopes to take over terminals, only one, in Newark, is similarly equipped with nuclear detectors. On Thursday afternoon, hours before the company's announcement, the Port Authority of New York and New Jersey, which owns the Newark container port, said it would terminate the lease of P &O Ports, the current manager of the terminal, in an effort to stop what it termed an illegal transfer to the Dubai company.
--------------------------------------------
The White House, while defending the deal, had sent some less-than-subtle hints. Karl Rove, the deputy White House chief of staff and President Bush's chief political adviser, said in an interview with Fox News that while the acquisition by Dubai Ports World would pass its final regulatory hurdles next week, "there's no requirement that it close, you know, immediately after that."

[flashl]

17. I remember the furor when it was found that

then Treasury Secretary John Snow convened the panel that approved the ports deal. IIRC Treasury had made its request for debt ceiling increase in December the previous year.

And, I believe that Dubai still acquired a British aerospace company that owns U.S. plants making tanks and military aircraft.

[Ian David]

2. Let's not raise the debt limit until we get the troops home. n/t

[daleo]

4. That's about $25,000 per person

About $5000 per person of that is since Bush took office. Clinton was running a surplus.

That's $5000 per person to pay for an illegal war and still no public health care.

On edit - More like $30,000 per person, and $10,000 from Bush.

[UpInArms]

7. $29,727.74 per person

http://www.brillig.com/debt_clock/

The estimated population of the United States is 303,045,170
so each citizen's share of this debt is $29,727.74.

The National Debt has continued to increase an average of
$1.41 billion per day since September 29, 2006

[no_hypocrisy]

6. That number will seem paltry in a few years when you add the cost of

occupying Iraq for at least another decade and no promise of leaving (unless the oil runs out).

[rodeodance]

8. and another headline says Bush wants MORE $$ for Iraq

[EVDebs]

9. There goes Arnold Schwarzennegar's chances for higher office nt

[KoKo]

10. Didn't Congress just raise the Debt Ceiling last week? Or am I thinking

of something else...? :wow:

[Robbien]

14. There was a DU thread last week discussing that the treasury put out notice

that it was asking Congress to hurry and increase the debt limit. Perhaps that is what you were thinking of?

[Trillo]

11. lie repetition

Houston Chronicle

Some Treasury Security Sales Suspended

The United States has never defaulted on a debt payment, a doomsday scenario that no Congress has been willing to contemplate since it would send the cost of government borrowing sharply higher. However, the political party that does not control the White House has often used the debate over the debt ceiling to score political points about the need to get budget deficits under control.

read more...

The U.S. defaulted in 1933.

[phantom power]

13. I've got a crazy fucking idea...

What if Congress passed budgets with a surplus, and used the surplus to pay down the debt?

[OrangeCountyDemocrat]

16. The Dems Will CAVE IN 100% In 5....4....3....2.....1.....

They'll HUFF and they'll PUFF!!!

Have they agreed to increase it yet?

The U.S. is FUBAR, and we DESERVE and I hope we get what we have coming to us.