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house Bill H.R. 692

If the Debt Limit is Reached, Should the Treasury Keep Borrowing?

Argument in favor

Failing to service the national debt and defaulting could trigger a debt spiral that damages the entire U.S. economy. Reneging on Social Security would harm vulnerable populations. This bill will prevent this kind of disaster.

Mark's Opinion
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10/20/2015
Oh man it's so funny to read the no comments because every single one doesn't know what the debt ceiling is. The debt ceiling is how much can we pay back to lower our deficit not to borrow more. It's implied that as a ceiling we need to lower our debt before we hit it; it's kind of like paying your credit card bill before maxing it out. It also insures the congress, who we all know doesn't do anything for the people, that if they fuck up paying our debt, which they probably will, then programs like Social Security aren't harmed. You no voters really need to read at least the summary to know what the bill is about before spout in your idiotic agenda.
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SherryTX's Opinion
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10/19/2015
No borrowing- they need to pay on the debt, but the govt needs to experience staff reductions- starting at the top. The need vs. want concept. SS is fully funded, except for the money that has been "borrowed" from it. Let's deal in facts. From the president down, all executive level staff takes a 15% pay cut. All other employees take a cut to reflect what they would be making in the private sector (civil service USED to pay less but had the great benefits). Then, take a pen to the expenses and start scratching off what we don't need. Social Security is NOT an entitlement, people paid in and should be able to get it back. In fact, I would be in favor of a lump sum payment of what people have paid in and let them plan for retirement themselves - obviously the money can't be trusted to our government. A workfare, not welfare model would encourage those that are able to get to work if they want a check. Nothing in life is free, despite what the liberals would have you believe.
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CPMonroe's Opinion
···
10/22/2015
First & foremost, we should raise the debt limit. Failure to do so will can cause serious harm to business, diminish both consumer & investor confidence here & abroad, raise short-term borrowing costs for taxpayers as well as negatively impact the credit rating of the United States. We should not be playing (what amounts to) economic brinkmanship in the hopes that the other side will blink. Aren't our Congressional representatives supposed to represent us?
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Argument opposed

This bill lowers expectations by planning for Congress to fail to raise the debt limit. Lawmakers should focus on on a solution rather than preparing a backup plan in case they fail to do what they need to.

BTSundra's Opinion
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10/19/2015
We have only raised the debt ceiling in recent years, and it's time to stop that. We need to clear out our debt, and if we reach the limit, it only makes sense we should stop borrowing money we can't give back.
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Craig's Opinion
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10/19/2015
They want any excuse to harm seniors. They won't help us
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John's Opinion
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10/19/2015
NO NO NO!! Do your damn jobs and quit kicking the can. It is time to hold the debt ceiling where it is and cut programs immediately to pay our bills!! Congress and past Presidents have been irresponsible long enough. WE ARE 18 TRILLION IN DEBT - WE NEED TO CUT HUNDREDS OF BILLIONS FROM THE BUDGET NOW!
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bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house Passed October 21st, 2015
    Roll Call Vote 235 Yea / 194 Nay
      house Committees
      Committee on Ways and Means
    IntroducedFebruary 3rd, 2015

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What is House Bill H.R. 692?

This bill would require the Dept. of the Treasury to continue borrowing after the debt limit has been reached. This ensures that the country can make good on its obligations related to mandatory spending and debt service. Essentially, this bill would make these types of debt exempt from the debt limit.

The Treasury would be required to issue debt obligations to allow the federal government to make payments on the principal and interest on the portion of the national debt held by the public or the Social Security Trust Funds. These obligations could not be used for paychecks for members of Congress.

If the Treasury uses the authority granted it by the legislation, it must report to Congress with accounting details on:

  • The principal on mature obligations and interest that is due or accrued;

  • Obligations issued under this bill.

Impact

Taxpayers, anyone who relies on Social Security benefits, and the Treasury.

Cost of House Bill H.R. 692

$0.00
The CBO estimates that this bill would not significantly add to the Dept. of the Treasury’s administrative costs.

More Information

In-Depth: Sponsoring Rep. Tom McClintock (R-CA) introduced this legislation because “the full faith and credit of the United States should not hang in the balance every time there’s a fiscal debate in Washington.”

The House Ways and Means Committee passed this bill by a vote of 23 to 15 amidst strong opposition from Democrats who said that it would “pay China first, and some Americans not at all.”

The Treasury has informed Congress that it will reach the federal debt limit in the first week of November 2015, at which point it will have exhausted its ability to take actions to service the national debt.


Of Note: The term ‘debt held by the public’ refers to individuals, companies, state or local governments, Federal Reserve Banks, and foreign governments that own federal debt securities like bonds, T-bills, TIPS, savings bonds. Currently, debt held by the public accounts for about $13 trillion of the total national debt, which exceeds $18 trillion.

Once a country defaults on its sovereign debt, there is a risk of a debt spiral beginning. A debt spiral happens when interest rates on the country’s debt securities rise because of a default, which means that the government has to spend more money servicing its debt. In the absence of economic growth and increased tax revenue, this requires the government to issue more debt simply to service existing debt.


Media:

Summary by Eric Revell
(Photo Credit: Flickr user NCinDC)

AKA

Default Prevention Act

Official Title

To ensure the payment of interest and principal of the debt of the United States.

    Oh man it's so funny to read the no comments because every single one doesn't know what the debt ceiling is. The debt ceiling is how much can we pay back to lower our deficit not to borrow more. It's implied that as a ceiling we need to lower our debt before we hit it; it's kind of like paying your credit card bill before maxing it out. It also insures the congress, who we all know doesn't do anything for the people, that if they fuck up paying our debt, which they probably will, then programs like Social Security aren't harmed. You no voters really need to read at least the summary to know what the bill is about before spout in your idiotic agenda.
    Like (13)
    Follow
    Share
    We have only raised the debt ceiling in recent years, and it's time to stop that. We need to clear out our debt, and if we reach the limit, it only makes sense we should stop borrowing money we can't give back.
    Like (9)
    Follow
    Share
    They want any excuse to harm seniors. They won't help us
    Like (5)
    Follow
    Share
    No borrowing- they need to pay on the debt, but the govt needs to experience staff reductions- starting at the top. The need vs. want concept. SS is fully funded, except for the money that has been "borrowed" from it. Let's deal in facts. From the president down, all executive level staff takes a 15% pay cut. All other employees take a cut to reflect what they would be making in the private sector (civil service USED to pay less but had the great benefits). Then, take a pen to the expenses and start scratching off what we don't need. Social Security is NOT an entitlement, people paid in and should be able to get it back. In fact, I would be in favor of a lump sum payment of what people have paid in and let them plan for retirement themselves - obviously the money can't be trusted to our government. A workfare, not welfare model would encourage those that are able to get to work if they want a check. Nothing in life is free, despite what the liberals would have you believe.
    Like (4)
    Follow
    Share
    NO NO NO!! Do your damn jobs and quit kicking the can. It is time to hold the debt ceiling where it is and cut programs immediately to pay our bills!! Congress and past Presidents have been irresponsible long enough. WE ARE 18 TRILLION IN DEBT - WE NEED TO CUT HUNDREDS OF BILLIONS FROM THE BUDGET NOW!
    Like (4)
    Follow
    Share
    First & foremost, we should raise the debt limit. Failure to do so will can cause serious harm to business, diminish both consumer & investor confidence here & abroad, raise short-term borrowing costs for taxpayers as well as negatively impact the credit rating of the United States. We should not be playing (what amounts to) economic brinkmanship in the hopes that the other side will blink. Aren't our Congressional representatives supposed to represent us?
    Like (3)
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    They act like Social Social Security is an entitlement which it is not. Shame on them for borrowing from this find in the first place! They need to do their job and quit putting our seniors at risk for unneeded anxiety. Fix our Country or leave your office and refuse the perks that follow you.
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    Is this a joke? How is borrowing more going to help pay off the debt? Make budget cuts!
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    Money would be used to pay China, not for American issues. Money will be going to bond holders, and not the veterans and other Americans that would benefit from the money. We need a SOLUTION not this BACKUP PLAN!
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    Every household needs to maintain their budget. So should the government.
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    It's called a DEBT LIMIT! Out of money? Stop spending. Our Federal Government needs a budget. We are at, or almost at, a point where all Gov revues will only pay for the interest payments on the National Debt. At his point, taxes must increase and those who pay no taxes and the "takers" of society will either starve or find jobs to support themselves. The Socialist program like Social Security will not have enough reserves to continue serving the retirees and those on disability. Why? Because the TRUST FUND only contains IOUs.
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    Not respecting these limits make us enablers of bloated, inefficient government.
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    Congress has already authorized the spending that requires us to pay down this debt via borrowing. Unfortunately, if we don't raise the debt ceiling once again, our country will default on its debt and bring catastrophic consequences. We should approve the debt ceiling raise but reign in spending for the fiscal years to come.
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    Never borrow. Cut spending on unnecessary crap like welfare, subsidies of any type, cutting the pay of congressmen & senators who waste money on pork projects
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    Our politicians need to take action towards paying this down and getting rid of it rather than increasing it and kicking the can down the road. Our kids will never know the America we grew up in if this type of crud keeps happening.
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    Stop robbing my children and grandchildren!!
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    Social security is not funded by tax dollars. It is funded on the backs of hard working Americans who pay into social security with each paycheck deduction that goes into a separate funding account. Some where along the way the Congress has been taking funds from Social Security to fund other Government programs. This is what I would call miss appropriation of funds (stealing). So when politicians use Social Security as a threat it is hogwash.
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    Who'll create another economic problem the democrats will mr president stop using the us treasury as atm
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    A debt ceiling is paying back debt before it is maxed out. Defaulting would be disastrous for our economy. Our credit should not be at risk every time our representatives can't agree.
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    You owe it pay it.
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