Re: Congress Street Garage Development
Youve been watching too much fox news. The fed cannot go bankrupt, it is impossible.
Not the fed -- the entity known as the United States of America -- a Federal republic of 50 independent states created by the ratification of the Constitution of the United States
As of now about $ 200 B per month flows in -- and unfortunately about $300 B per day is flowing out
What it translates into is borrowing about $4B per day to pay our obligations (in about $6B out about $10B)
Remember that after about August 2 the ability to overdraft the account is cancelled -- now capped by legislation of a few years ago -- setting the debt limit at $14,294B
from the Wiki article "Article I Section 8 of the United States Constitution gives the Congress the sole power to borrow money on the credit of the United States. From the founding of the United States through 1917 Congress authorized each individual debt issuance separately.....Second Liberty Bond Act of 1917.established an aggregate limit, or "ceiling," on the total amount of bonds that could be issued....The modern debt limit, in which an aggregate limit was applied to nearly all federal debt, was established in 1939. The Treasury has been authorized by Congress to issue such debt as was needed to fund government operations (as authorized by each federal budget) as long as the total debt (excepting some small special classes) does not exceed a stated ceiling. Since 1979, the House of Representatives by rule has automatically raised the debt ceiling when passing a budget, except when the House votes to waive or repeal this rule....The most recent[33] increase in the U.S. debt ceiling to $14.294 trillion by H.J.Res. 45 was signed into law on February 12, 2010. "
But in and Out don't necessarily occur synchronously -- somewhere in the August / September time-frame there will come a day when the US Treasury needs to write a check bigger than what is in the cash box -- this will require prioritization of obligations -- maybe not quite Chapter 11 -- but clearly time to start thinking about how things are financed -- perhaps a return to the pre-WWI approach of Congress authorizing with the President signing for each bond issue -- e.g Obama 31, 2, 3.....
