Bill Gross: 'Don't Mess With The Debt Ceiling'

Washington Post:

To raise or not to raise the debt ceiling; that is the question: Whether 'tis nobler to suffer the slump and arrows of default today or in some distant future. Oh, bards of Washington, give us your answer.

Read the whole story: Washington Post

Comments

[oklahomabill]

09:10 PM on 07/15/2011

Follow me on this, On Aug. 2 the United States defaults on its debt obligations. The dollar will immediately lose its status as the world's reserve currency. Prices will immediately begin to rise on everything from commodities, food, energy, you name it. Social Security checks, payments to the disabled, payments to our armed forces and Federal monies to support education will cease immediately. Holders of U.S. bonds will begin an immediate dump. China, which hold trillions in U.S. currency could dump this on the global market in an attempt to salvage what it can. Forget your ideologies; this is madness on a scale not seen since the tariff craze of the late 1920's, which by the way, caused a worldwide depression on a scale never seen before or since.This is Thelma and Louise driving off the cliff because they think they can fly. 30 years of demagoguery and ideological absolutism has lead us to the abyss. All those 'tea party' types are about to reap what they have sown. Americans who have not participated in their democracy are about to reap the whirlwind. When China is scared it should tell you something. If this happens someone is going to be put up against the wall by a people who have never wanted for food, gas, or the basic necessities of life. One can only hope reason will prevail.

[iam99]

04:29 PM on 07/15/2011

Rethinking gold. Unless it is on your bling it just sits there, and still it just hangs there.
Gold - one of the most boring substances on earth.
But, it represents.. it represents...

[Holly Smoke]

02:11 AM on 07/15/2011

Fiat monetary system like the U.S. is based on faith and trust. Default is a denial of trust and destroy faith. There are no other choice but to prolong its life by lifting the suffocating ceiling...

[Steve Rockett]

08:48 PM on 07/14/2011

The right thinks the world is 6,000 years old and they think science is bunk, so why would they believe an economist. They do believe the Bu*tf*ck Poll from Alabama Community College that says they are next to God in the eyes of all Americans with two eyes. They aren't getting my retirement money this time. To hell with the right. When that little weasel Paul Rand is investing against the US, it is time to get out of the casino.

[MikeRubin2]

08:51 PM on 07/14/2011

Bulls eye! Faved and I'd fan you again if I could.

[LouGots]

04:34 PM on 07/14/2011

Mr. Gross leads off with the lie which pollutes the position of the administration and its bootlickers.

"To raise or not to raise the debt ceiling; that is the question: Whether ’tis nobler to suffer the slump and arrows of default today or in some distant future."

[Jen Celli]

04:05 PM on 07/14/2011

We are obligated to pay our debts, ceiling or not. Stop with all the useless nattering and pandering to the ignorant classes and get on with responsible handling of our debt. I'm disgusted that everything has to come down to some kind of political football to appease people that have no idea what is at stake. We are in no position to default and Boehner knows it. There's nothing to negotiate; pass the damn bill and move on to something productive.

[AmySeow]

03:16 PM on 07/14/2011

If we raise the debt ceiling, it's just more of the same - more corporate control, and less jobs for the people. It is time to STOP. Keep the debt ceiling and start forcing the country to live within it's means.
http://www.wix.com/andrewcostell3/simple-wealth-book

[Quotidien]

04:15 PM on 07/15/2011

Raising the debt ceiling isn't a call for increased spending. Republicans are using this moment as a political grandstand to appease their biggest fundraisers, that's all.

Many Americans are being manipulated by the Republican distortion of the facts.

[Aikaterina]

01:14 PM on 07/14/2011

Whatever punidts or politicians say, the fact is we (the government of the US) ran up bills, debts which must be paid. Raising the debt ceiling simply allows the government to meet its obligations, pay its bills, and does NOT involve increased spending. Not only the financial markets, but many individuals dependent on benefits-entitlements (Social Security, the disabled and disabled veterans, etc.) relying on their monthly government checks will be adversely impacted.

For long-term fiscal-budgetary discipline, the federal government should have a balanced-budget amendment to the Constitution, as do most states. Spend only what we have and no more. If a need-emergency emerges (eg. natural disaster, wars, etc.) then cuts elsewhere or special revenue increases would be mandatory.

Political-ideological grand-standing or posturing, name-calling, casting blame (on either side) won't solve our fiscal issues. Sadly, on BOTH sides of the aisle and in both houses, the elephant in the room (unemployment) is being ignored. Those unemployed can't and don't pay taxes, while the wealthiest can elude them. Unless average, working-middle class Americans get back to work, the revenues to the government will continue shrinking, and economic recovery will be hampered via their inability to purchase goods-services (impacting local businesses).

[TggerJen]

06:52 PM on 07/14/2011

Outstanding and fabulous post! Fanned and faved big, especially for the point about unemployment being ignored (although it's all marvelous!!)!

[oracleofoceanpark]

07:25 PM on 07/14/2011

Excellent post.

[Fodder-wing]

12:10 PM on 07/14/2011

Of course the US cannot afford to default. Nearly all discussion seems to revolve around default. If the debt ceiling is not raised, obligations on debt can and should be paid, albeit at the expense of other budget line items and unknown consequences this may have.

In any event, our inability to deal with the deficit, regardless of raising the debit ceiling at this time, may well lead to a down grade of our credit worthiness anyway. And why shouldn't it?

http://www.msnbc.msn.com/id/43746142/ns/business-stocks_and_economy/

[PWM]

11:47 AM on 07/14/2011

One thing that could happen. If we default bond and treasury bill holders may just start dumping US bonds - so do the pubs have an idea how to pay those people off?

[notdarkyet]

11:27 AM on 07/14/2011

From the article:

Raise it unencumbered if necessary.
If our government doesn’t give a damn about the greenback dollar and its solvency, why should we expect others to protect its status as a reserve currency — a privilege that, by the way, lowers our interest expenses by an estimated $30 billion annually?
The answer to our modern-day Hamlet’s question then, is that there should be no question at all. The debt ceiling must be raised and not be held hostage by budget negotiations. Don’t mess with the debt ceiling, Washington. Bond and currency vigilantes will make you pay.

Bottom line, they are messing with the dollar. These guys may never get another campaign contribution if they don't get it done.

[gloriab]

10:33 AM on 07/14/2011

Could we replace the ceiling with a skylight and create an illusion to go with our other ones?

[Linda from Deerfield]

10:21 AM on 07/14/2011

One begins to wonder just who is insisting that Republicans force the nation into default.

[mabinog]

11:02 AM on 07/14/2011

fringe dwelling social conservative baggers

[Aikaterina]

01:18 PM on 07/14/2011

They are pushing for this, in part to blame the current administration for any default, and also to placate their core constituency. The problem is, most lawmakers (both houses and in both parties) will heed the call-demands of their masters, namely Wall St. and the FED (banking cartel), who don't want their notes devalued.

[joe kim]

11:19 AM on 07/14/2011

Don't think anyone wants a default. Think people do want the govt to think about where the money is coming from.

We are in essence borrowing from our future generations and slowing growth in the future.

[Steve Rockett]

08:51 PM on 07/14/2011

If you think this is bad, imagine the interest rates future generations will have to pay on treasuries if the debt ceiling isn't raised. Righties haven't mentioned that, have they?

[jane13]

10:06 AM on 07/14/2011

pass this debt ceiling and stop all this political nonsense. its money we owe. half these other issues are things to be put out alone after this. Jane

[Dubbles]

09:50 AM on 07/14/2011

Sorry but I don't see the debt crisis as a subject for levity.

[MWA1111]

10:25 AM on 07/14/2011

And I see it as a manufactured "crisis". Funds can be shifted to cover the debt and the essentials.

[joe kim]

11:22 AM on 07/14/2011

we have enough money coming in to pay our debts for a very long time, it is SS and medicare/aid that is the drain on the system. how do you fix that? people that are taking from SS and medicare/aid did not put in nearly enough to pull out till they die.

Part of the problem with an aging demography with not enough people replacing them in the workforce.

The people that made the system knew they were pushing the problem out, and borrowing from SS fund didn't help.

[moose and squirrel]

11:26 AM on 07/14/2011

[facepalm]
obviously you dont run a business or have any idea how budgets work.  

 outlays and revenues zero out each year.  there are no funds to be shifted.  its called a liquidity problem.  you can sell your assets, but you would take a bath on the sale and hurt yourself further by selling off stuff you actually need to stay afloat.

[ModerateOhioDemocrat]

10:39 AM on 07/14/2011

Lighten up Francis.