Treasury: This is really, seriously the end of the line with the “extraordinary measures”

posted at 9:21 pm on October 1, 2013 by Erika Johnsen

However long the federal government’s current shutdown status lasts, there is the possibility that any Congressional compromise (or lack thereof) that might emerge will be reached with the understanding that results on some of the ObamaCare and budgetary sticking points can wait until the debt-ceiling fight later this month.

A government shutdown of a few days certainly means a lot of inconvenience for a heck of a lot of people, but the (arguably) much bigger crisis of hitting our debt limit and possibly defaulting might mean some serious repercussions throughout the world’s financial markets. So far, the markets don’t seem too perturbed, but as Treasury Secretary Jack Lew reprimanded Congress in yet another letter on Tuesday, the deadline is fast approaching. Via Politico:

Treasury Secretary Jack Lew informed Congress today that the Treasury Department has begun to use “final extraordinary measures” to pay the country’s bills, and urged lawmakers to immediately raise the country’s debt ceiling.

In a letter to members of Congress, Lew detailed the last-resort steps Treasury has begun taking to make its payments, but warned that they “do not provide Congress with more time to act.”

“There are no legal and prudent options to extend the nation’s borrowing authority,” Lew wrote, repeating that Treasury still expects to exhaust all of its extraordinary measures on Oct. 17 — the previously stated deadline for Congress to up the nation’s borrowing limit.

I’d guess that that’s a deadline over which most lawmakers would rather not venture, and indeed, as Rep. Paul Ryan hinted today, the threat of surpassing the debt limit itself might be what finally forces some kind of budget deal:

Senior House of Representatives Republican Paul Ryan said on Tuesday that a mid-October deadline to raise the U.S. borrowing limit is a “forcing action” for a budget deal.

“We have a debt limit coming … in about two weeks,” Ryan told reporters at a brief news conference. The House Budget Committee chairman added: “Most budget agreements in the past have always involved debt limit increases.”


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Okay, make a deal then. Oh wait Obama would destroy the country rather than compromise.

rob verdi on October 1, 2013 at 9:23 PM

The Extraordinaire FinancialGoon mentions “Extraordinary measures”!

Da Sky is gonna fall,or sumpins as Dire!!

canopfor on October 1, 2013 at 9:25 PM

85 billion a month pumped into the stock market.
You could start there.

RovesChins on October 1, 2013 at 9:25 PM

They gave up on the platinum coin idea?

Rebar on October 1, 2013 at 9:26 PM

Oh please, he’s just starting the drama for the end of the world for the next time anyone might want to cross The Won. I have a great idea, just stop spending more than you take in and stop letting federal employees rob everyone blind. No more loans to green companies or any other kind of company.

Cindy Munford on October 1, 2013 at 9:29 PM

Ryan’s an idiot, stating that we will have to cave on or before the 17th gives the otherside NO incentive to negotiate before then. It’s same as announcing a timetable for ending hostilities in the middle of a war.

abobo on October 1, 2013 at 9:30 PM

We’re all going to die if we can’t spend the exact amount of the debt ceiling.

Bishop on October 1, 2013 at 9:32 PM

This won’t cause us to default on our debt, but were that eventually to occur, I dare say it would be a good thing.

There of course would be some intense short-term pain, but the long-term benefit of basically never being able to borrow again could be the best consequence of reality — sans r e v o l u t i o n — that could save some semblance of this once-great land …

ShainS on October 1, 2013 at 9:33 PM

For You RedNecks (Snark)!
=========================

TReeSURY SECRETARY: We’re Usin Air ‘Final Extraerdinree Meesures’
Published October 1, 2013 | By Business Insider
***********************************************

N’ a lett’r ta Trayler Speek’r John Boehn’r, U.S. Treesury Secretree Jacob Lew, sed at t’U.S. has startid usin “final extraerdinree meesures,” ta stay beloe t’debt ceileeun’. Lew sed t’meesures will be exhaustid no lat’r thun Octob’r 17. Congress’ failure ta agree ta a budget deel has let ta a fer t’furst time n’ 17 yeers. Wile t’White Trayler an’ Congress a’cantinyah ta battle it out ov’r t’budget, thar air concerns at thishere will
========================================================

http://www.hillbillytimes.com/

canopfor on October 1, 2013 at 9:35 PM

Paul Ryan is a cheap suit.

Our country is gone, gone, gone.

stenwin77 on October 1, 2013 at 9:35 PM

Anyway, they want to get past this so they can cram AMNESTY down our throats.

stenwin77 on October 1, 2013 at 9:36 PM

I think I’ll contact Visa and see if they’ll increase my debt limit from 28K to 280K. I’m sure they’ll go along, don’tcha think?

predator on October 1, 2013 at 9:38 PM

We’re all going to die if we can’t spend the exact amount of the debt ceiling.

Bishop on October 1, 2013 at 9:32 PM

You made me spit water through my nose.

RovesChins on October 1, 2013 at 9:38 PM

Get out in front of this now. Offer debt limit increase as part of the package. Vote on it and send it to Reid.

KCB on October 1, 2013 at 9:38 PM

Make him say no to that.

KCB on October 1, 2013 at 9:39 PM

I hope it is the end.

Shut the whole thing down (except the military) and turn it all back to the states.

Do we really need a Treasury Secretary?

Do we need a EPA?

Do we need a Department of Energy?

Do we need OSHA?

PappyD61 on October 1, 2013 at 9:40 PM

Did not SENATOR Obama say that raising the debt limit was a sign of FAILURE OF LEADERSHIP?

What does PRESIDENT Obama have to say now? Seeing that he’s had to raise the debit limit 5 TIMES.

GarandFan on October 1, 2013 at 9:40 PM

Raise the debt limit if he agrees to a 10% cut cut cut in the budget (about $375 billion?).

……and full defunding of ObamaCare.

PappyD61 on October 1, 2013 at 9:43 PM

Treasury: This is really, seriously the end of the line with the “extraordinary measures”

YES.

Myron Falwell on October 1, 2013 at 9:48 PM

Dear Secretary Lew,

As of today, the government is shut down.

Which, according to Nancy Pelosi, Harry Reid, Barack Obama, and the Ministry of Propaganda mainstream media, means the government is no longer spending any money.

Therefore, since no money is being spent, it is an impossibility that bills are being incurred, and there is no risk of the country crossing the debt limit.

You may either say they are liars or do anatomically-impossible things to yourself.

Sincerely,

We Fed-Up Taxpayers

northdallasthirty on October 1, 2013 at 9:53 PM

YES.

Myron Falwell on October 1, 2013 at 9:48 PM

Myron Falwell:Lol:)

canopfor on October 1, 2013 at 9:56 PM

Shut up, Jack Lew. EVERY BLOODY DEMOCRAT IN THE SENATE VOTED AGAINST RAISING THE DEBT CEILING IN 2006.

Resist We Much on October 1, 2013 at 9:57 PM

It makes sense to raise the debt ceiling by an amount equal to leaving the government shut down until after the 2014 elections. Between now and the election congress can have a long debate about the cost and scope of each department and program in tandem with the effect on the additional debt each of them will add vs. their benefit. Ted?

HICON on October 1, 2013 at 9:58 PM

Well I can say once the funny money stops the markets will crash and burn… not sure how to take this.

watertown on October 1, 2013 at 9:58 PM

Did not SENATOR Obama say that raising the debt limit was a sign of FAILURE OF LEADERSHIP?

What does PRESIDENT Obama have to say now? Seeing that he’s had to raise the debit limit 5 TIMES.

GarandFan on October 1, 2013 at 9:40 PM

I break it down a little different than most folks do:

Obama has raised the debt limit by $6 trillion dollars. He then borrowed and spent that money. Then he denies that raising the limit incurs more debt.

Don’t forget….Obama has spent more money than any other human being…..ever. EVER!

Historic.

BobMbx on October 1, 2013 at 9:59 PM

Did not SENATOR Obama say that raising the debt limit was a sign of FAILURE OF LEADERSHIP?

What does PRESIDENT Obama have to say now? Seeing that he’s had to raise the debit limit 5 TIMES.

GarandFan on October 1, 2013 at 9:40 PM

In his own words…

The Hypocrisy Of Barack Obama And Democrats On Raising The Debt Ceiling Is Nothing Short Of Stunning

Resist We Much on October 1, 2013 at 9:59 PM

They will KILL the baby pandas if you don’t call your reps and have them turn the money back on.

Bishop on October 1, 2013 at 10:02 PM

We’re all going to die if we can’t spend the exact amount of the debt ceiling.

Bishop on October 1, 2013 at 9:32 PM

You made me spit water through my nose.

RovesChins on October 1, 2013 at 9:38 PM

…DID IT GO ON THE WHITE BOARD?

KOOLAID2 on October 1, 2013 at 10:09 PM

Annual federal revenues run $2.7 trillion+, annual debt service is just under $400 billion last year. As long as we service the debt – pay the interest as it rolls over – we are NOT “defaulting.”

At some point we won’t be able to pay for Martha’s Vineyard vacations or for Beyonce and Jay-Z to shake their booties at the White House while regaling guests with their funny Castro stories about torturing dissidents. But default is a long way off.

Adjoran on October 1, 2013 at 10:29 PM

hitting our debt limit and possibly defaulting

Getting really fast and loose with the word “default” lately.

Axe on October 1, 2013 at 10:30 PM

We’re all going to die if we can’t spend the exact amount of the debt ceiling.

Bishop on October 1, 2013 at 9:32 PM

You made me spit water through my nose.

RovesChins on October 1, 2013 at 9:38 PM

…DID IT GO ON THE WHITE BOARD?

KOOLAID2 on October 1, 2013 at 10:09 PM

You racist tea partiers! Bunch of bigots!

RovesChins on October 1, 2013 at 10:30 PM

They will KILL the baby pandas if you don’t call your reps and have them turn the money back on.

Bishop

Wrong ! They will take care of the baby pandas, but the camera is turned off. Chil’run and the elderly ? Eh, they might die, according to Dem’s. But we are constantly reminded that the Pandas WILL GET TAKEN CARE OF. Whew !

williampeck1958 on October 1, 2013 at 10:32 PM

For all of the MSM hysteria about PandaCam, I have to admit that I didn’t even know it existed 24 hours ago.

B-, b-, but, it’s ESSENTIAL!!!

Resist We Much on October 1, 2013 at 10:36 PM

For all of the MSM hysteria about PandaCam, I have to admit that I didn’t even know it existed 24 hours ago.

B-, b-, but, it’s ESSENTIAL!!!

Resist We Much on October 1, 2013 at 10:36 PM

I wish you hadn’t said that. Because now I realize I never heard of PandaCam either. And I can feel it sinking into my head, becoming a thing.

It’s mating with this:

They will KILL the baby pandas if you don’t call your reps and have them turn the money back on.

Bishop on October 1, 2013 at 10:02 PM

I can see the YouTube video. I can see the political cartoons.

“Fund ObamaCare, or the Panda gets it.”

. . . aw man, no time for another thing . . .

Axe on October 1, 2013 at 10:48 PM

Erika, I posted a comment on Allah’s thread the other day. All of you are talking “default” – there is no DEFAULT… Not getting an extension to your credit line is not a default. Not paying your bill is, and what Jack Lew is NOT emphasizing is that we have enough tax revenue to pay the interest and principle on USG debt.

SkinnerVic on October 1, 2013 at 10:52 PM

Has anyone explained how the official national debt has remained completely unchanged, with not even a dollar’s worth of swing in either direction, for 137 straight days (since May 17)?

It seems to me that the simplest explanation–or should I say “extraordinary measure”–is that they are flat-out lying about the debt and have been for over four months.

HakerA on October 1, 2013 at 11:04 PM

Wish these jack holes would make up there minds on what day the world is gonna end.

I was all prepared for today and now I gotta wait another 2 weeks

roflmmfao

donabernathy on October 2, 2013 at 12:14 AM

GOP: Pass clean bill to raise debt limit by $100 billion (about a months worth of debt). Ask WH and Senate for spending cuts, no cuts next month raise debt limit by $10 billion less; i.e. $90 billion, repeat as necessary.

Dasher on October 2, 2013 at 12:21 AM

Erika, I posted a comment on Allah’s thread the other day. All of you are talking “default” – there is no DEFAULT… Not getting an extension to your credit line is not a default. Not paying your bill is, and what Jack Lew is NOT emphasizing is that we have enough tax revenue to pay the interest and principle on USG debt.

SkinnerVic on October 1, 2013 at 10:52 PM

Yeah — but they would have to divert money away from failing green companies (i.e. donors) to pay the interest on the debt.

Dasher on October 2, 2013 at 12:24 AM

Yeah — but they would have to divert money away from failing green companies (i.e. donors) to pay the interest on the debt.

Dasher on October 2, 2013 at 12:24 AM

Exactly. But, to state the obvious, we are required by law to pay the debt. We aren’t at risk of defaulting, we’re at risk of not having money left over to give to failing green companies.

Shouldn’t have to keep saying this . . . but that “default” word just keeps appearing.

Axe on October 2, 2013 at 12:33 AM

I suspect the reason for the market optimism is it’s a demonstrable fact that the Republicans are getting routed right now… Hence, the GOP will cave and there will be a floor vote on the House to increase the debt ceiling and pass a CR that doesn’t touch the Affordable Care Act.

If the Republicans were in a stronger position and if they were united on this issue, they might credibly threaten not to raise the debt ceiling unless Obama agrees to defund ACA. The resulting standoff would be utterly disastrous. Instead, (if the DC Examiner is to be believed) it seems Boehner has already all but promised Rep. Peter King a floor vote on this if the Tea Party fails to come up with something that’s acceptable to the Senate majority. When this happens, the Examiner speculates three-fourths of the Republican House caucus will side with the Democrats.

http://washingtonexaminer.com/john-boehner-changes-tone-on-clean-cr-to-end-funding-standoff/article/2536639

http://washingtonexaminer.com/how-30-house-republicans-are-forcing-the-obamacare-fight/article/2536611

mlindroo on October 2, 2013 at 3:54 AM

So what’s the problem. If the Government forfeits on it’s debt of paying retired military or the disabled then we will take them to court and foreclose on their property. It’s the law. What do you think we can get for the Statue of Liberty on E-bay. Each individual can take the Government to Small Claims Court to seek damages. No lawyer necessary. The DOJ will have to address over 5 million claims a day. Time that “WE THE PEOPLE” start putting some pressure on these people.

jpcpt03 on October 2, 2013 at 4:03 AM

Sure. And, as with everyone in the Obama administration, it will prove to be a lie.

sadatoni on October 2, 2013 at 7:07 AM

Don’t give in. No matter how much you borrow, it will never be enough.

My state is a perfect example. We needed money. So the politicians brought in a sales tax seven years ago, promising to get rid of the import/export tax. Well, the sales tax came in, but the import/export tax is still there too. But they still need money because people are bailing out and (o! shocks!) the sales tax collections are a fraction of what they expected. So now they came up with a bright new idea: Let’s issue bonds based on the projected income from the sales taxes we’re going to put on inter-business transactions. Yes, you heard that right. They are going to charge sales taxes on bank transfers, deposits, and payments between businesses. And now they are trying to sell bonds based on that projected income. Naturally, Moody’s is not impressed and slapped our credit rating down another level. We were already two above junk.

Don’t let them borrow more. There will always be more they want to borrow.

JoseQuinones on October 2, 2013 at 11:40 AM

Here’s an extraordinary plan for you… Don’t spend money you don’t have. With the federal government bringing in record revenue, they could easily divert spending to deal with debt issues.

Dasher on October 2, 2013 at 5:32 PM