On the debt ceiling

[Tdarcos]

I have seen some pretty stupid people, but the Teabagger Republicants take the cake. Mainly because they seem to think the government can pay for everything even if it doesn't have the money, or that failing to pay our bills is not a bad thing even if it causes the government's credit rating to suffer.

The debt ceiling, 31 US Code Sec. 3101, sets a limit on how much the U.S. can run up in debt.

Since the 1960s the debt limit was raised something like 71 times. It is a pro-forma act because the government has spent more money than it takes in and has to borrow 40c on the dollar because it only raises 60c through taxes. Republicans and Democrats, while some might vote against it symbolically, in the end, it had to be raised. We are paying bills already contracted.

If there is a spending problem, the correct answer is to reduce the amount allocated for specific departments, not hold the raising of the debt ceiling hostage to cuts in various programs that Contress itself authorized in the first place.

The entire fight over this whole issue is over a bill that would, if done correctly, would be ONE SENTENCE:

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the public debt limit set forth in subsection (b) of section 3101 of title 31; United States Code, shall be equal to $16,700,000,000,000.

That is the whole thing they're fighting over, a bill that should be no more than one page, and basically one sentence.

[bruce]

The entire fight over this whole issue is over a bill that would, if done correctly, would be ONE SENTENCE:

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the public debt limit set forth in subsection (b) of section 3101 of title 31; United States Code, shall be equal to $16,700,000,000.

Albeit a sentence with one more comma and three more zeroes than that.

Bruce

[Tdarcos]

(b) of section 3101 of title 31; United States Code, shall be equal to $16,700,000,000.

Albeit a sentence with one more comma and three more zeroes than that.

Thank you, I have corrected my original entry to read 16.7 trillion instead of 16.7 billion.

[Flack]

My organization has furloughed 4,000 employees. I'm still here, but we'll see what happens after August 2nd.

[Ice Cream Jonsey]

or that failing to pay our bills is not a bad thing even if it causes the government's credit rating to suffer.

Waitasec, is this the same "credit rating" they use for regular joes? The one where your credit score goes down, albeit temporarily, if people do credit checks because you want to use your credit score? Because that "credit rating" can suck a dick. What a transparent way to control people.

[Tdarcos]

or that failing to pay our bills is not a bad thing even if it causes the government's credit rating to suffer.

Waitasec, is this the same "credit rating" they use for regular joes? The one where your credit score goes down, albeit temporarily, if people do credit checks because you want to use your credit score? Because that "credit rating" can suck a dick. What a transparent way to control people.

No, it doesn't work that way for commercial entities.

The three credit rating agencies for individuals use a variation of Fair, Isaac's FICO score. This runs from a horrible low number around 350 all the way to a stellar 850.

For commercial entities there are only two credit agencies where creditors report back: Equifax and Dun and Bradstreet. I'm not sure what Equifax uses, but D&B uses their own system called Paydex. A Paydex score is from 0 to 100. Again, higher is better.

The commercial creditworthiness rating of companies such as Moodys, Standard & Poors and such, are done where the company pays the credit rating agency to rate it.

And it's not really fair. A commercial entity can have 10,000 credit checks run against it; its credit rating will not be affected by them. This is why there's no danger for a corporation applying simultaneously for 600 credit cards or lines of credit; if they're approved or turned down, it has no effect on their credit rating.

If you as an individual apply for six credit cards in a short period of time and your rating will take a hit for a few months.

Part of this could be because you don't have to have a reason to request the credit report for a commercial entity. When you want an individual's credit report, you're supposed to have a legitimate reason: a creditor, a current or potential employer, someone suing them, or have permission of that individual, etc.