The federal government has reached its debt limit today.

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The day of reckoning looms: The federal government has reached its debt limit today.

Treasury Secretary Timothy F. Geithner told Congress that the U.S. hit its statutory debt limit, necessitating emergency steps announced last week as a way to keep funding the government and avoid default. Geithner said he had issued a “debt issuance suspension period” for the Civil Service Retirement and Disability Fund, effective today and to last until Feb. 28, 2013. The letter said the Treasury was taking similar action for the Postal Service Retiree Health Benefits Fund.

This is only a temporary solution that solves nothing. And the fake negotiations over the fake “fiscal cliff” are doing even less than nothing to deal with the debt situation. We are bankrupt and worse, we are continuing to refuse to face that reality.


One comment

  • Pzatchok

    I have noticed something odd.

    Why are the main banks not screaming about this? They have skin the game also. The federal government doesn’t pay its bills federal workers don’t get paid and federal contractors don’t get paid.
    If the fed doesn’t make its bills someone down the line is not making loan payments, or getting loans for new stuff, Or making large orders for the future.

    What do they know that we do not? Have they been told that everything will be fine and the government will just print more money, thus selling more bonds to cover them,which these banks either transfer, sell or buy for an eventual profit.
    Are they on the verge of making more money on government bonds than on private loans?

    And if my theory is wrong then everyone in the know must expect the bills to be fully paid eventually. Thus this whole cliff idea is just a made up political boogy man formed up to attack someone with.

    We all know that the Dems have been for YEARS (since Bush at least) have been crying to end the Bush tax cuts in total. Well now they finally get what they want and they get the chance to blame the Republicans for raising taxes. Since we all know the repubs couldn’t make a real deal with the President and the dems to extend the tax cuts.

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