In the summer of 2011, when the debt crisis, at present this faint, beautiful country President Obama warned republicans, older americans may not get their social security check, unless there is a agreement, improve the country's borrowing limit.
After a few weeks to the brink of war policy, the republicans agree and barack Obama agree with GOP think deficit reduction plan. Crisis can be avoided, at that time.
Now there is a new battle, cuts to social security and more - may be on the table.
The government can run cash to pay all the bills, as early as in February 15,, according to an authoritative estimates, the republicans in congress hope deep cuts in spending exchange borrowing limit increase. Obama, forced to in 2011, has increased negotiations promise not to renegotiate.
If there is no agreement, his government faces every option will be unprecedented.
This will require a certain degree of financial creativity, can test method, even is the "constitution".
It can profiteer social security recipients and others, including the veterans and the poor, who rely on the government's plan.
This may force the Treasury to consider selling government assets, step by step into consideration, but in 2011 refused. In short, the ministry of finance will have to create your own form shunt, creating the most important obligation of the debtor to pay interest, the interests of the vulnerable to American priority list.
"This is probably somewhere route will be some question the government at that moment, but at that moment, who go to stop them?" Q, a former U.S. congressional budget office director Douglas hall - elvis's gold. "I pray that we never found that they are so rich imagination."
In such a debt crisis, the President will have to decide, what kind of law, he wants to break. If he violates borrowing limit not congress OK? He ignored the law's spending commitment?
Write to barack Obama on Friday, the senate democratic leader urged him to consider any "legal steps to ensure that the United States does not break his promise, and trigger a global economic crisis - no congressional approval, if needed.
The White House has been opposed to the road. It refused to call advice, in the "constitution" the 14th amendment regulation, pointed out that "the United States... the effectiveness of public debt should not be questioned.
"Deal with the debt ceiling only two options: congress to pay its bills, can also do not take action, the state by default," White House press secretary jay karni said. "Congress needs to do the job."
So, what is left, if congress does not take action time?
Technically, the government played debt ceiling ends in December. Since then, U.S. Treasury secretary Timothy · cover Turner (Timothy Geithner) has stopped payment government workers retirement and disability fund and the postal service the health benefits of retirement fund.
The ministry of finance can stop payment of a special fund to buy or sell foreign currency, to stabilize the global financial market.
The past governments take such steps to buy time to improve the debt limit. President Bill Clinton and President George W bush is something like this. The government to restore those in congress to raise debt limit funds.
These measures and other government remain solvent, perhaps as long as the beginning of march, according to the analysis of the two party policy center.
There is another an extreme possibility.
The federal government may sell some of its assets, its gold reserves to student loan portfolio.
"All of these are in the market principles, and in a crisis, you will get a huge discount," hall, - elvis jin said, now the American action BBS, conservative public policy research institutions in charge of the. "They won't be good daily business, but you can be in very period."
According to last year's treasure supervisory long report, officials in 2011 deliberation, and rejected the idea, come to the conclusion, gold sales will damage the international financial system, sell off student loan portfolio is not feasible, and the "sale" will buy only a limited amount of time.
Some liberal ideas to promote use of a legal loophole, to coin collection and the ministry of finance mint can reside in the fed's platinum COINS and used for the payment of the country's bill. However, the ministry of finance issued a statement on Saturday, the thought of rest, he said both department doesn't fed think method "can or should be used to promote the production of platinum COINS to avoid increase debt ceiling purpose."
Once all the efforts are used, then the government will be unknown.
At this point, the government will continue to get revenue, but not enough to keep up with the bill. According to the two party policy center on February 15,, and March 15 between, the federal government will get an income of $27.7 billion, and $45.2 billion of debt face.
The ministry of finance will have to decide whether to pay a certain obligations, rather than others or just pay a day bill, because its tax introduced and index delay payment time to grow more, debt ceiling don't improve. In almost all cases intends to pay debt interest will be priority, put off a catastrophic default.
"I suddenly thought of shunt, should choose to create the greatest political pressure, break the deadlock, this will withhold the amount of social security check, said:" Philip wallach, in the United States brookings institution senior member.



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