US government warns it's running out of cash

Fri Dec 30,12:21 PM ET
We need more wars thats the ticket-March or April, well attack another nation any1 wanna place a bet?


Treasury Secretary John Snow has warned that unless Congress raises the national debt limit, the US government will run out of cash to finance its daily work in two months.

In a letter to Senate leaders Thursday, Snow said the statutory debt limit imposed by Congress of 8.184 trillion dollars would be reached in mid-February and the government would then lose its borrowing power.

"At that time, unless the debt limit is raised or the Treasury Department takes authorized extraordinary actions, we will be unable to continue to finance government operations," said the letter, seen by AFP.

Snow warned that even if the Treasury took "all available prudent and legal actions" to avoid breaching the ceiling, "we anticipate that we can finance government operations no longer than mid-March".

"Accordingly, I am writing to request that Congress raise the statutory debt limit as soon as possible."

The Republican-led Congress last voted to increase the debt limit in mid-November 2004, despite opposition from Democrats who demanded the free-spending federal government tighten its belt instead.

The US debt limit sparked bitter partisan battles in the mid-1990s between a Republican-dominated Congress and the Democratic administration of president Bill Clinton, leading to shutdowns of the federal government.

Once the US government hits the ceiling, it comes under threat of defaulting on its debts and can lose the ability to raise future credit on the capital markets.

Snow underlined that the "full faith and credit of the United States" was a unique selling point on the markets.

"A failure to increase the debt limit in a timely manner would threaten this unique and important position," he wrote in his letter.



http://news.yahoo.com/s/afp/20051230...E0BHNlYwN0bWE-

They'll just raise the debt limit, and if not. . . hmmmmm?
Who do we owe the most money to? We'll just have to attack them and erase the debt.
WAR! The answer to all Americas problems.

Ya raising the debt would work, but the future generation will be paying for it for at least 100yrs...I guess we be bringing Democracy to China soon huh! thats who we owe the most toooo...

Were in debt like 8.1 trillion dollars but everythings alright the republicans are going to save us...

Chinaâ??s eclipse of the United States as a consumer nation should be seen as another milestone along the path of its evolution as a world economic leader. Its record-high domestic savings and its huge trade surplus with the United States are but two of the more visible manifestations of its economic strength. It is now China, along with Japan, that is buying the U.S. treasury securities that enable the United States to run the largest fiscal deficit in history.

The United States, the worldâ??s leading debtor nation, is now heavily dependent on Chinese capital to underwrite its fast-growing debt. If China ever decides to divert this capital surplus elsewhere, either to internal investment or to the development of oil, gas, and mineral resources elsewhere in the world, the U.S. economy will be in trouble.

China is no longer just a developing country. It is an emerging economic superpower, one that is writing economic history. If the last century was the American century, this one looks to be the Chinese century.

So it's China eh?
I was afraid of that. I think we would eventually loose in a war with China, there's just too many screamin Chinamen. So, what's the alternative? Hmmmm?

How hard is it to learn madarin?

Well I for 1 dont want to learn-- bad spanish & bad english is good enuff for me--Well there is an alternative Iran has oil, Syria to and then off to South America....

I bet America will invade Iran or North Korea next...The US doesnt have enough actual combat troops to fight a war against China no matter how much they may want to.