Snow: Congress must raise debt limit this week

[Earth_First]

WASHINGTON, March 14 (Reuters) - U.S. Treasury Secretary John Snow said on Tuesday Congress must act this week to raise the $8.18 trillion U.S. debt ceiling or risk losing the confidence of markets and investors.

"Timely action on the debt ceiling this week, before Congress leaves for recess, is critical to assure financial markets and investors that the integrity of the obligations of the United States will not be compromised, nor will even a risk of such compromise be countenanced," Snow said in remarks prepared for delivery to a conference organized by America's Community Bankers.

If the ceiling is not raised, Treasury would not be able to issue new debt.

The House of Representatives nearly a year ago passed a $781 billion increase in the debt ceiling. The Senate is set to weigh a similar measure.

Snow warned senators against adding amendments to the bill, which could result in the need for further House action and potential delays. "Any effort to use this 'must pass' legislation as a means of achieving leverage on other issues should be set aside and avoided," he said.

http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2006-03-14T154424Z_01_N14336273_RTRIDST_0_ECONOMY-SNOW-DEBT-UPDATE-1.XML

[Inland]

1. Well, Johnnie, that's what friday evenings are for.

All the shit that the congress doesn't want to highlight, passed after hours on the weekend without debate.

[liberal N proud]

2. Why don't they just blow the lid off of the debt and make it legal

for the regime to borrow what ever it needs. No fiscal responsibility whatsoever.

[ramapo]

3. Why not $100 trillion?

What's the difference? Set it absurdly high. It is already meaningless as the electronic money creation will not, can not, be stopped. Eventually, the tipping point will be reached and then watch out below.

[phantom power]

8. Exactly. A debt ceiling that *always* gets relaxed is meaningless.

[radfringe]

24. exactly

means nothing.

it's like an alcholic swearing to be sober with one hand raised and reaching for "one more drink" with the other

[Astrad]

4. Doesn't anyone care?! Rich people could suffer! n/t

[Carla in Ca]

22. John Snow...another day, another crony

He could get this amount from his petty cash fund.

<http://www.scoop.co.nz/stories/HL0603/S00010.htm>


PART OF CSX -- namely, CSX Lines -- was sold to ...drum roll, please.... The Carlyle Group, early in Feb. 2003, for $300 million.

One of the biggest customers of CSX Lines is the US military.

John Snow, the CEO of CSX, was appointed Treasury Secretary by Bush jr. on Feb. 7, 2003.

Cozy, wasn't it?

[phantom power]

5. I think it's hilarious...

that just raising the debt ceiling would actually maintain the confidence of investors and markets. I mean... why? I want in on that action. I hereby vote to raise my debt limit to... a millionnnn dollarssss. There! I bet that makes my mortage holder very happy! I can now go out and borrow a million dollars, with total confidence!

[ixion]

9. exactly

from an individual, or even a corporation, logic like this would never stand.

[arcane1]

13. I was wondering much the same thing..

I would have presumed that a higher debt would cause a LOSS of confidence..

or is this just more Bushspeak?

[phantom power]

14. Raising the debt ceiling maintains a facade of "control."

It sends a message: "Yes, our debt is increasing, but we're allowing it on purpose." In that sense, it's marginally better than increasing the debt without raising the ceiling, which sends the message "we're completely out of control."

Of course, it's a facade. Congress isn't in control of the federal budget. Their behavior is about as convincing as the junky who always says "I can quit any time, I just don't want to." And I'm sure that most savvy investors are fully aware of this.

[Norquist Nemesis]

6. Why do they always wait till the last minute?

Never mind.

[jseankil]

7. Debt under Bush and Republican controlled Congress...anyone have numbers?

Great election talking points.

[catmandu57]

10. Ah, the party of small government

and big elephant turds. Why it was just the other day that they were screaming about balancing the budget, they were so series, it was so hugh, it needed to be in the freaking constitution.

[Skittles]

23. series.....hugh.....

never fails to crack me up :D

[Warpy]

11. The world needs to do us a favor

and refuse to take on any more debt from this profligate warmongering bunch. Clip their wings and prevent the next war right now by refusing to allow them to wage it on credit.

Inadequate troops may not be enough to stop a man who thinks nukes will win a war. Not being able to replace those nukes might.

[dweller]

12. the 'trickle down' has dried up

drip ... drip ... drip ... .... ...

dp

[Sadie5]

15. Trickle down?

These days it seems as if the trickle down is running up hill and into the pockets of the wealthy politicians.

[NewWaveChick1981]

17. Must be like one of those Mystery Hill attractions

where everything is backwards (stuff rolls uphill, etc.).

[bdot]

26. Is that when you try to pee your name in the snow?

[rodeodance]

16. whats the matter mr. snow. you don't like a little wheeling n dealing?

Snow warned senators against adding amendments to the bill, which could result in the need for further House action and potential delays. "Any effort to use this 'must pass' legislation as a means of achieving leverage on other issues should be set aside and avoided," he said.

[Rex]

18. Why set a limit? Fuck it! Spend spend spend!

No limit! Make that debt so high, it becomes ridiculous and absurd...well okay 8 trillion is already absurd. Does anyone here understand that it will never be paid off? Well maybe by China in 2050.

[Owl]

19. Just Say

No

[DemInDistress]

20. Can we call our banks and tell them to raise our credit limits?

Don't think so.. This fiscal atrocity must stop, recklessness waste and theft the hallmark of the GOP.

[knitter4democracy]

21. Let's not.

Seriously, let's not. Let's say we'll take the next six months to ax all pork and tax cuts to trim the budget and get things in line. That's what the rest of us do.

[Celeborn Skywalker]

25. More robbery of the treasury.

Nothing to see here, folks, move along.

[0007]

27. Are we a Banana Republic yet? For Christ sake raise the lip

and give uniforms to our leaders with medals to cover their whole chest.