Friday, June 17, 2011

ABC shows how Treasury auctions debt; this all stops Aug. 2 iff...

Daniel Arnall of ABC News provides a report on the “Auction Room” belonging to the US Treasury Department, somewhere in an undisclosed office building in Washington.

The US Treasury sells T-bills to investors to keep the government running another two or three days at a time.
The chief said this stops cold on Aug. 2 if Congress doesn’t extend the debt ceiling.

Conceivably, if the US defaults, investors could turn to the courts to force immediate cuts in entitlements.
John Boehner (R-OH) is said to be preparing to discuss the debt ceiling issue with president Obama over golf on Saturday. Biden and the Republican governor of Ohio will join in.  Some sort of agreement, maybe?  No cigarette smoking, please. 

Senator Sanders of Vermont asks, “what happened to ‘shared sacrifice’ that HR Perot had talked about in 1992? That means taxes on the rich. But it could mean immediate means testing, too. The Yahoo! interview of  Sanders is here.

Picture: Little me (1946) at a farm in Boehner's state. 

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