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starbucks4ever (99.52)

That's Orwellian

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August 10, 2009 – Comments (9)

The Treasury chief has just made a remarkable statement about raising the cap on federal debt: “It is critically important that Congress act before the limit is reached so that citizens and investors here and around the world can remain confident that the United States will always meet its obligations.”"

Here, the top official in the ministry of Plenty is speaking the language commonly used by the Ministry of Truth. In plain Newspeak, he is saying that if Congress votes tomorrow to increase its credit card balance from $12.1 trillion to, say, $15.1 trillion, that move should inspire its bankers with confidence and prompt them to raise the Congress's FICO score. One can only wonder how come this financial alchemy doesn't seem to be working for the other credit card addicts who now have their credit lines cut and see their FICO scores plunge to the 600s. Official statements are rapidly becoming more and more counterintuitive and difficult to decipher without the application of doublethink.

9 Comments – Post Your Own

#1) On August 10, 2009 at 11:03 AM, Tacomatight (63.14) wrote:

I think your post is vanilla but I give you huge props for bringing back 1984. One big rec. from one prole to another.

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#2) On August 10, 2009 at 11:16 AM, russiangambit (29.89) wrote:

The hearings in Congress should be of great entertainment value. I can't wait.

Or, and FED is supposedely not going to buy anymore Treasuries so now they need to find other suckers for the US debt. Also, can't wait.

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#3) On August 10, 2009 at 11:28 AM, leohaas (91.68) wrote:

Yeah, yeah, yeah.

Keep on comparing what the Federal Government does with the behavior of an individual citizen. You might as well have argued that grass is green; a true statement, but just as applicable to Goverment financing as credit card balances and FICO scores!

Time for Macroeconomics 101?

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#4) On August 10, 2009 at 12:02 PM, starbucks4ever (99.52) wrote:

russian,

I am willing to bet the Fed will buy plenty of treasuries. And I'm not going short here, not for the world. At this rate we'll all be dollar millionnaires by 2019.

leonhaas,

Just one short question. Did Geitner's announcement really make you more confident that the United States will always meet its obligations? 

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#5) On August 10, 2009 at 12:23 PM, catoismymotor (68.41) wrote:

I will not rest until I am referred to as *Beloved Leader*.

 

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#6) On August 10, 2009 at 3:59 PM, leohaas (91.68) wrote:

Yes, I remain confident in the great US of A! My money is where my mouth is (long TIPS).

It is indeed "critically important that Congress act" like Mr. Geitner announced. The stimulus-driven recovery of the economy depends on it. Again, macroeconomics 101.

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#7) On August 10, 2009 at 4:16 PM, starbucks4ever (99.52) wrote:

leonhaas, don't you think that TIPS are a little overpriced? How much do they pay above the rate of inflation at current yields? Something like minus 1.25%? Also, do you know how they compute inflation indexes? Hedonically adjusted imputed rents and all that stuff, no doubt?

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#8) On August 10, 2009 at 4:37 PM, DaretothREdux (42.37) wrote:

leohaas....

nevermind. it's not worth it. you'll learn...you'll learn...keep putting your faith in Keynesian macroecnomics...after all it's only been proven wrong 3-4 times since he started writing...

Dare

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#9) On August 17, 2009 at 4:20 PM, Londamania (63.88) wrote:

This is very bad.  The last thing we can afford to do is raise the debt ceiling.  We need to start a decade long program of lowering it at every opportunity.
The scariest thing about this to me is that unlike most here I think we have some pretty smart people running the government now adays...smarter than most of the posters anyways :)  If they are being forced into this it is not a good situation.

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