Wednesday, October 09, 2013

What happens if we don't "fix" the debt ceiling?

It's a common occurrence.  A credit card payment gets missed.  As a result, since the cardholder was very close to their credit limit, when the interest is added to the balance, it now exceeds the credit limit.  That results in two charges being added to the account.  A late payment fee and an over-limit fee, driving the balance even higher.  With some credit cards, a "penalty" interest rate comes into effect, usually much higher than the original rate.

The same thing will happen if our Congress doesn't pass a bill raising the debt limit, or debt "ceiling" as it is commonly referred to.  The holders of the bonds that make up the U.S. public debt earn interest on those bonds that was preset at the time they were sold. 

This means that we are going to be paying more to finance what we owe.  You can see just how much we are talking about here:  http://www.treasurydirect.gov/NP/debt/current  and it should be noted that we actually reached the true debt ceiling back in March.  The real debt ceiling was $16.4 trillion until it was "temporarily raised" to $16.7 trillion or so.  But the Treasury has been engaged in "extraordinary measures" (read that as accounting tricks) in order to avoid breaking the ceiling.   Would breaching the debt ceiling be the "nuclear bomb" that President Obama describes it as, or will it be insignificant as Tea Party pundits are saying?  The truth lies between.

First off let's recognize that when Treasury finally acknowledges that we've gone over the ceiling, on October 17th, we won't have a zero balance in their accounts.  There will be between $25 billion and $40 billion in cash on hand in D.C. and more comes in daily.  Employers must pay their employee's withholding and other taxes very quickly after the employees are paid.  The larger the payroll, the faster the taxes must be sent to the Treasury.  I remember one former employer where we had to pay our taxes before the end of the day after paychecks were handed out.

This means that cash continues to flow into the coffers of government.  Therefore they aren't going to run out of money right away.  However, come November 1st, a big outlay in monthly Social Security payments comes due.  A few weeks later, a large interest payment on the national debt must be paid to bondholders or the interest rate they are receiving will increase.  Eventually, the government will fail to pay some obligation, causing a true default.

It should not be allowed to happen.

* * *

I got a reminder yesterday of what a cold-hearted son-of-a-bitch one of my former employers is.  When I got seriously ill the first time, this employer violated hospital protocol and stormed into my room in the ICU to question me about work stuff, while I was still intubated.  Then they laid me off while I was still in rehab.

The following year, as I lay in a coma, the bastard terminated my health insurance illegally.  They knew I was in a coma and unable to make payment myself and did it just to avoid paying the medical expenses from my hospitalization.  Because he's such a cheap a-hole, he self-insures and micromanages the claims in order to try to make more millions he won't ever get around to spending.

This unethical wretch of an excuse for a human being actually approached one of his other employees (she's now among the large number of former employees of his) after she'd returned to work from an illness.  In front of her co-workers, he took her to task for going to the emergency room, rather than just using urgent care or making an appointment for the next day.

I imagine he's approaching 80 now, and yet if I ever saw him in person again, I'd actually consider bitchslapping the hell out of him...at least for a nanosecond.  He isn't worth it, but just for an instant I'd love to see the expression on his face.

I've never enjoyed physical confrontations.  But there was one other instance where I might have enjoyed one, had it come to pass.  A good friend of mine was having trouble with her ex-husband and he was threatening to hit her again.  He was frustrated that he had to go to the police station for his visitation rights.  He had weekends with their young daughter, but the "exchange" was mandated to take place at the police station, in the presence of law enforcement personnel in order to keep things above board.

She confided in me that she was afraid he might break into her home and beat her again.  I knew the jerk and I had a short conversation with him.  I told him that if he ever laid a finger on her again, I would beat him double or triple whatever he did to her, and that he'd be just as powerless to stop me as she was to stop him.  He knew I was serious.  Though he blew a little more hot air her way, he pretty much gave up trying to scare her.  I honestly don't know if I'd have gone through with it or not, had he hit her again.

Most bullies are actually cowards.  They bully those they can dominate because it is safe.  They don't see their victims as a threat.  The minute the target of the bullying poses a threat, they will almost always back off.  When they are forced into a "fair" fight, or worse yet, they are on the wrong side of an unfair fight, they will bawl like babies.

The rise in bullying in our society disgusts me.

* * *

Random Ponderings:

Allowing the survivors of military personnel killed on active duty to go without the death benefit payment even one hour longer than usual is totally unacceptable behavior by both the Democrats and the Republicans.

The fact that those payments were being help up by the shutdown while the gymnasium for members of Congress continues to operate is outrageous!

So the father of that 9 year old who stowed away on a plane to Las Vegas was told by a cop that he'd be arrested if he'd hit the boy, after the boy was busted for joyriding?  You can't even spank a child as discipline anymore?   There's something wrong with this equation.

I bet Frank McCourt is yelling at the walls now that the ownership of the Dodgers is allowing fans going to playoff games in carpools of four or more to park free.  Then again, maybe not.  He gets paid $15 million a year from his share of the parking lots no matter how much the new ownership take in from parking.

Can we focus more on Janet Yellen's eminent qualifications rather than her gender, as she seeks to be confirmed as head of the Federal Reserve?  Although I'd have preferred Robert Reich.

I suspect it was someone working at ESPN who is a fan of the Los Angeles Lakers who arranged for the network to give them a preseason ranking of 12th in the Western Conference.  Seeing his team ranked so low will definitely piss Kobe Bryant off.

If I promise not to comment again on the Kardashian Klan, or the Jenners, can I have an internet and a media free of any more news of them?  I didn't think so.  BTW, I suspect the reason they won't be divorcing is that Kris doesn't want to give Bruce half of the empire she's accumulated in terms of potential future earnings.  Oh, and if I was married and my wife was sneaking Viagra into my coffee to get laid more often, the moment I'd have learned of it, I'd have moved out.

Dominos makes more dough from selling dough to franchisees for pizzas than it does from the sale of those pizzas.

Not allowing unpaid interns to sue for sexual harassment is just plain wrong, but that's the law.

I'm not bothered by the fact Jermaine Jackson bought a Ferrari on the day his wages were garnished for back child support as much as I am curious about who the hell is employing him?  And what is he doing to earn enough that $3,750 is the monthly garnishment?

* * *

This Date In History:

768 – Carloman I and Charlemagne are crowned Kings of The Franks.
1238 – James I of Aragon conquers Valencia and founds the Kingdom of Valencia.
1264 – The Kingdom of Castile conquers the city of Jerez that was under Muslim occupation since 711.
1446 – The hangul alphabet is published in Korea.
1514 – Marriage of Louis XII of France and Mary Tudor.
1558 – Mérida is founded in Venezuela.
1582 – Because of the implementation of the Gregorian calendar, this day does not exist in this year in Italy, Poland, Portugal and Spain.
1594 – The Portuguese Empire army is annihilated by the Kingdom of Kandy on Sri Lanka, bringing an end to the Campaign of Danture.
1595 – The Spanish army captures Cambrai.
1604 – Supernova 1604, the most recent supernova to be observed in the Milky Way.
1635 – Founder of Rhode Island Roger Williams is banished from the Massachusetts Bay Colony as a religious dissident after he speaks out against punishments for religious offenses and giving away Native American land.
1701 – The Collegiate School of Connecticut (later renamed Yale University) is chartered in Old Saybrook, Connecticut.
1708 – Peter the Great defeats the Swedes at the Battle of Lesnaya.
1740 – Dutch colonists and various slave groups begin massacring ethnic Chinese in Batavia, eventually killing 10,000 and leading to a two-year-long war throughout Java.
1760 – Seven Years' War: Russian forces occupy Berlin.
1771 – The Dutch merchant ship Vrouw Maria sinks near the coast of Finland.
1799 – Sinking of HMS Lutine, with the loss of 240 men and a cargo worth £1,200,000.
1804 – Hobart, capital of Tasmania, is founded.
1806 – Prussia declares war on France.
1812 – War of 1812: In a naval engagement on Lake Erie, American forces capture two British ships: HMS Detroit and HMS Caledonia.
1820 – Guayaquil declares independence from Spain.
1824 – Slavery is abolished in Costa Rica.
1831 – Ioannis Kapodistrias, the first head of state of independent Greece is assassinated.
1834 – Opening of the Dublin and Kingstown Railway, the first public railway on the island of Ireland.
1845 – The eminent and controversial Anglican, John Henry Newman, is received into the Roman Catholic Church.
1854 – Crimean War: The siege of Sebastopol begins.
1861 – American Civil War: Battle of Santa Rosa Island – Union troops repel a Confederate attempt to capture Fort Pickens.
1864 – American Civil War: Battle of Tom's Brook – Union cavalrymen in the Shenandoah Valley defeat Confederate forces at Tom's Brook, Virginia.
1873 – A meeting at the U.S. Naval Academy establishes the U.S. Naval Institute.
1874 – General Postal Union is created as a result of the Treaty of Berne.
1888 – The Washington Monument officially opens to the general public.
1907 – Las Cruces, New Mexico is incorporated.
1911 – An accidental bomb explosion in Hankou, Wuhan, China leads to the ultimate fall of the Qing Empire
1913 – Steamship SS Volturno catches fire in the mid-Atlantic.
1914 – World War I: Siege of Antwerp – Antwerp, Belgium falls to German troops.
1919 – Black Sox scandal: The Cincinnati Reds win the World Series.
1934 – Regicide at Marseille: The assassination of King Alexander I of Yugoslavia and Louis Barthou, Foreign Minister of France.
1936 – Generators at Boulder Dam (later renamed to Hoover Dam) begin to generate electricity from the Colorado River and transmit it 266 miles to Los Angeles, California.
1940 – World War II: Battle of Britain – During a night-time air raid by the German Luftwaffe, St. Paul's Cathedral in the City of London, England is hit by a bomb.
1941 – A coup in Panama declares Ricardo Adolfo de la Guardia Arango the new president.
1942 – Statute of Westminster 1931 formalizes Australian autonomy.
1942 – The last day of the October Matanikau action on Guadalcanal as United States Marine Corps forces withdraw back across the Matanikau River after destroying most of the Imperial Japanese Army's 4th Infantry Regiment.
1945 – Parade in NYC for Fleet Admiral Nimitz and 13 USN/USMC Medal of Honor recipients
1950 – Goyang Geumjeong Cave Massacre started.
1962 – Uganda becomes an independent Commonwealth realm.
1963 – In northeast Italy, over 2,000 people are killed when a large landslide behind the Vajont Dam causes a giant wave of water to overtop it.
1966 – Vietnam War: Binh Tai massacre
1966 – Vietnam War: Dien Nien-Phuoc Binh massacre
1967 – A day after being captured, Marxist revolutionary Ernesto "Che" Guevara is executed for attempting to incite a revolution in Bolivia.
1969 – In Chicago, the United States National Guard is called in for crowd control as demonstrations continue in connection with the trial of the "Chicago Eight" that began on September 24.
1970 – The Khmer Republic is proclaimed in Cambodia.
1980 – Pope John Paul II shakes hands with the Dalai Lama during a private audience in Vatican City.
1980 – Princess Caroline of Monaco divorces Philippe Junot.
1981 – Abolition of capital punishment in France.
1983 – Rangoon bombing: attempted assassination of South Korean President Chun Doo-hwan during an official visit to Rangoon, Burma. Chun survives but the blast kills 17 of his entourage, including four cabinet ministers, and injures 17 others. Four Burmese officials also die in the blast.
1986 – The musical The Phantom of the Opera has its first performance at Her Majesty's Theatre in London.
1989 – An official news agency in the Soviet Union reports the landing of a UFO in Voronezh.
1991 – Ecuador becomes a member of the Berne Convention copyright treaty.
1992 – A 13 kilogram (est.) fragment of the Peekskill meteorite lands in the driveway of the Knapp residence in Peekskill, New York, destroying the family's 1980 Chevrolet Malibu
1995 – An Amtrak Sunset Limited train is derailed by saboteurs near Palo Verde, Arizona.
1999 – The last flight of the SR-71.
2001 – Second mailing of anthrax letters from Trenton, New Jersey in the 2001 anthrax attack.
2003 – Mission: SPACE opens to the public in the Epcot park at Walt Disney World. The opening ceremony included several astronauts from all eras of space exploration.
2006 – North Korea allegedly tests its first nuclear device.

Famous Folk Born On This Date:

Charles X of France
Francis Wayland Parker
Alfred Dreyfus
Rube Marquard
Walter O'Malley
Joe Rosenthal
Peter Mansfield
John Lennon
Joe Pepitone
Trent Lott
Jackson Browne
John Entwhistle
Sharon Osbourne
Dennis Stratton
Tony Shalhoub
Scott Bakula
John O'Hurley
Michael Pare
Sheila Kelley
Guillermo del Toro
David Cameron
Eddie Guerrero
Troy Davis
Sean Lennon
Brandon Routh

Movie quotes today come from 2002's "Life or Something Like It" where a TV reporter played by Angelina Jolie (as a blonde, no less) is told by a supposed psychic named Jack, played by today's birthday boy Tony Shalhoub, that she is going to die:

Pete: Do you have another cameraman who can make her look like a natural blonde?
Lanie: I'm a TV personality. My hair is my trademark. Just like the "I don't like to shower" look is your trademark.

#2

Jack: Watch your step on your way out.
[Lanie trips in a crack and breaks the heel off her shoe]
Lanie: Saw that in a vision, did you?
Jack: No. I trip in that crack all the time.

#3

Deborah Conners: You... go.
Lanie: You mean like "you go girl"?
Deborah Conners: No. Just go.

#4

Lanie: I met a homeless guy and he had a vision.
Cal: What like Espn?
Lanie: No, he had ESP! There's no N.