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July 24th, 2011
10:45 PM ET

The Debt Ceiling & You: What To Do With Your Budget During the Uncertainty

As lawmakers try to reach a compromise about raising the debt ceiling, the crisis may effect your personal bottom line. CNN's Don Lemon gets advice from Jordan Goodman, a personal finance expert, on how to weather the uncertainty, and even benefit from it.

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  1. steve u

    I think that the law makers had beeter think about what they are doing to the people. they did this to us buy over spending and sending all kinds of money over seas. They need to worry about making jobs here in the us and work for the people noe faten ther own pockets,take a cut in pay themselves. How can you call obama a commdre and cheif when he never servied in th service.

    July 24, 2011 at 10:58 pm |
  2. Barbara Johnson

    It must be nice to have enough money to 'lower your mortgage', buy gold and silver, and oil, etc. For those of us who live on Social Security 'etc'...the prospect of not receiving that check is thrilling. I am appalled that you are recommending 'oil'...so we can further stuff the oil coffers...since Corporate Oil is part of the big picture. Yes, America is in trouble when the money you worked for...and paid into Social Security and Medicare is threatened by the government due to fanatics in the Republican Party who will eventually humiliate themselves due to their unconcionable behavior. Step right up and shove all of your money into 'Oil'...I don't think so...Not this time!!

    July 24, 2011 at 11:19 pm |
  3. Mike Therrien

    If they don't raise the debt ceiling providing some info on How to manage with little or no income. keep in mind many are out of work in some regions is as high as 20% unemployment. If Social Nets are reduced or cuts how can one manage to survive. Who to pay first, planting victory gardens and stocking up on bulk foods. Sharing resources with other families or extended family. What we don't need is investment advice..(Sorry Ali, we love you but your talents are better suited if downgraded to managing poverty not wealth) In fact...a segment on Managing your Poverty would wold be better suited than managing your money. there are MANY ways to Manage your poverty and stretch that last dollar so it buys the most.

    July 25, 2011 at 7:09 am |
  4. Devonshire

    1) Until now we’ve been borrowing the money the Government created back from the private sector, in order to cover our deficit spending, so the national debt has been steadily growing.

    2) That’s silly! According to the Constitution, this Government, of the people, by the people, and for the people, is the ultimate source of all US money. So why should we ever borrow US money back and pay interest on it, since we can create it any time by the authority of the Constitution and Congress?

    3) Congress has also imposed a debt ceiling, which, as you know, we’ve now reached, so we can’t borrow back our own money, anyway.

    4) So, on my order, and in accordance with legislation passed by Congress in 1996, and with the US Code, the US Mint has issued $30 Trillion in a single platinum coin, and deposited it at the NY Fed. It’s legal tender, so the Fed credited the Mint’s Public Enterprise Fund (PEF) with about $30 Trillion in USD credits, using its unlimited authority from Congress to create US Dollars.

    5) This is not inflationary, because the Fed will put our coin into its vault, and keep it there permanently out of circulation, and we will use the $30 T in USD credits only to pay back debt, and to spend what Congress has already approved, which is only a fraction of these credits and far from the amount needed to cause inflation.

    6) My action ends the debt ceiling crisis, because we have no further need to borrow our own money back in the markets, so we don’t need the tea party or other Republicans, or even my fellow Democrats to agree to raise the debt ceiling.

    7) Now the Treasury, has plenty of money, much more than we need, in fact, to pay for all appropriations Congress has already approved for 2011, and, again, we won’t have to borrow our own money back.

    8) So we will pay all Government debts which will come due in 2011. Treasury securities and all other debts included. We will also pay back all debts held by other agencies of Government and the Federal Reserve. When we do this we will lower the national debt by about $7.5 T,rillion reducing the “debt burden” by about half this year, and creating an actual Social Security trust fund with 2.6 Trillion in cash reserves in it; and again, to do this we don’t have to borrow our own money back, and we will also reduce our interest costs on the outstanding national debt.

    9) None of the $30 T in new credits created by our actions is “money” in the economy until the Treasury spends it. For now it is just capability to spend awaiting the appropriations of Congress to mandate deficit spending, should it need to compensate for the reduction in demand, probably close to 10% of GDP right now, caused by your own desire to save (which we want to do our best to facilitate), and your desire to import goods from foreign nations.

    10) We have created $30 Trillion in new credits even though we needed only a fraction of that to cover anticipated deficit spending and debt repayment until 2021. The reason for this, is that I wanted to have enough capability created in the Treasury account, so that the national debt could be completely paid off (except for a small amount in very long-term Treasury debt still not mature by 2021), and all projected Federal deficits covered over the next 10 years.

    11) Of course we can always make new coins if our projections turn out to be wrong; but I thought it would be best to ensure that all $14.3 T of the “debt burden” can be completely eliminated from our political concerns; and also to provide enough funds in our spending account at the Fed so that it would be very clear to Congress and all newly elected Representatives and Senators, that even though they, according to the Constitution, continue to control the purse strings, the national purse is very, very full, and that we will be able to afford whatever deficit spending for the public purpose, including for full employment and Medicare for All, that Congress, in its wisdom, chooses to appropriate now and before the election of 2012.

    Good night, my fellow Americans and sweet dreams! Rest well knowing that our beloved country won’t be defaulting on any of its debts, and that I’ve prevented this without going over the legal debt ceiling, by providing money for spending mandated appropriations, in compliance with the laws authorizing coin seigniorage, while supporting the Constitution’s prohibition against our Government ever defaulting on its debts.

    I hope that in the future everyone will obey the 14th Amendment’s prohibition against questioning the validity of Federal Government debts, and think twice before they indulge themselves in such loose talk. America will always pay its debts in US Dollars, according to the terms of the contracts it has concluded, and in line with the pension payments and other obligations that it owes. Neither you, nor the rest of the world, need ever doubt that again!

    July 25, 2011 at 8:01 am |
  5. R Fritz

    If we go into a bank to borrow money so we can pay our bills, the bank will require a plan to reduce expenses or increase income or both in order to loan us the money.

    What is so difficult to understand! Why can't our government operate the way we all have to? Maybe they are so insulated from the financial backlash that they don't UNDERSTAND!!!!

    July 25, 2011 at 8:23 am |
  6. cherylIves

    The republicans should back the pres. Obama 100%. We MUST tax the rich . A short term plan that BOehNER thinks he's smart enough to con just won't work. The republicans are to blame for not comproomising. OUST them all!

    July 25, 2011 at 11:12 am |
  7. Barbara Lynch

    What would you tell your Congressman? This is what I have told my Congressman – Scott Tipton: I favor simply raising the debt ceiling through 2013. Then deal with all these contentious issues like cutting spending, tax reform, etc. separately. I personally favor raising revenue and growing the economy even though we need to spend more money to get the economy growing.

    July 26, 2011 at 11:15 am |
  8. dale b

    I am a disabled senior veteran...if even on senior or disable veteran does not receive a paycheck...Boehner should be prosecuted for high treason...relieved of office..this man is a disgrance to America...and bring back the Clintons please.

    July 26, 2011 at 12:20 pm |
  9. TBarber

    In the Constitution of the United States it says "We the people of The United States" Not we the people of congress!!! These people need to quit acting as children fighting on the playground and start acting as some of the leaders of the free world. Get your heads out of your butts and quit going against everything the president is saying and start helping the people of your country NOW we demand it.!!!!!!!

    July 26, 2011 at 12:29 pm |
  10. Denise Shaver

    Who do I send the bill to? They say if Congress does not raise the debt ceiling it could directly raise my credit card interest rate. So I want to know who do I send the bill to when that happens? Republicans in the House drew a line in the sand and said they will not raise the debt ceiling unless spending is cut and no taxes are raised. Sounds like a threat and appears they are holding America's Ecomony hostage especially so close to the deadline. Some might say that looks a little like terrorism, last I knew that was illegal. They all need to walk to the center of the room and take a look around. Our nation is made up of more then one political party. Stop my way or the highway and COMPROMISE!

    July 26, 2011 at 12:30 pm |
  11. Lisa Bates in Provo, Utah

    How it affects my bottom line? I am on 100% permanent disability... My social security IS my bottom line!!! What am I supposed to do???

    July 26, 2011 at 12:34 pm |
  12. chian saw

    Money is never enough. Politicians are just negotiating for more money. Why do we need money? What are we buying? What is the politician worth? How much money will they be earning in the private sector? The debt ceiling issue is causing stock prices to fall and interest rates tro rise. We must make things cheaper. Then we can have as much as we want.

    July 26, 2011 at 12:36 pm |
  13. Lisa Bates in Provo, Utah

    A bunch of us around the country have petitioned the ACLU to take our Representatives to court for violating their oath of office by signing the No Taxes Pledge. I personally asked them to take my representative, Jason Chaffetz

    Here is what we have been sending:

    TO: American Civil Liberties Union of (Enter your State)

    I wish to file an action in Federal Court against my (Insert Congressman/Senators name). (Insert Congressman/Senators name) has signed the following pledge with an organization known as “The Americans for Tax Reform:”

    Taxpayer Protection Pledge:

    I, ____, pledge to the taxpayers of the (____ district of the) state of _____ and to the American people that I will: ONE, oppose any and all efforts to increase the marginal income tax rate for individuals and business; and TWO, oppose any net reduction or elimination of deductions and credits, unless matched dollar for dollar by further reducing tax rates.

    (Insert Congressman/Senators name) has also taken the following Congressional Oath of Office:

    Congressional Oath of Office:

    “I, AB, do solemnly swear (or affirm) that I will support and defend the Constitution of the United States against all enemies, foreign and domestic; that I will bear true faith and allegiance to the same; that I take this obligation freely, without any mental reservation or purpose of evasion; and that I will well and faithfully discharge the duties of the office on which I am about to enter. So help me God.”

    I allege that my rights as a constituent of (Insert Congressman/Senators name) have been violated as follows:

    1. That the above pledge is really between (Insert Congressman/Senators name) and The Americans for Tax Reform, not the American people or constituents of his District. The pledge was not prepared by his constituents or presented for his signature by them.

    2. By signing the above pledge, (Insert Congressman/Senators name) has prejudged all issues involving taxes and as a result fails to properly represent my needs and interests as his constituent.

    3. That (Insert Congressman/Senators name) has violated his Congressional Oath of Office. By signing a pledge with The Americans for Tax Reform, (Insert Congressman/Senators name) does not honor his commitment to “bear true faith and allegiance” to his country or constituents. He places the interests of an outside organization above my interests as his constituent.

    4. That (Insert Congressman/Senators name) has violated that provision of his Oath which states that he swears “without any mental reservation”. He has entered into a written agreement with an outside organization that limits a reasonable review of all issues and options, which precludes a proper representation of me, as his constituent.

    Sincerely yours,

    The redress I asked for is to have him removed from office for violating the oath of office, Then we can elect someone who will THINK objectively and represent his or her constituents!

    I think this is news.

    Lisa Bates

    July 26, 2011 at 3:30 pm |
  14. Eileen Curras

    I agree with Chian Saw. Polititians are just negotiating for more money. Yes, the cost of life is getting out of control. Look at the price of basics as milik, rice and cheese.

    July 26, 2011 at 8:29 pm |
  15. YA - Atlanta

    Inspired by the resent debt ceiling debate in congress and by my Republican congressman, I am writing to my credit card company and am refusing to pay my bill until my wife agrees to drastic spending cuts...

    July 27, 2011 at 2:41 pm |
  16. john

    Another example of BIG BUSINESS showing how much they care for the customers they have and claim to serve.

    I just came up with another rant. Thinking ahead trying to see what effect the lack of the debt ceiling solution will have on me I called the bank to ask about the bills I have scheduled to be paid through auto-pay, and those that I have agreements with debtors to take from my account monthly. I have found out if the government does not direct deposit my SS check any and all attempts to collect or payments sent out will be treated as insufficient fund attempts the same as though I wrote a insufficient check.
    I am not sure how the bank expects me to pay those charges since I do not have time to make any changes to such things as my mortgage payment ,etc. I did cancel the bills I had scheduled to be paid by the bank through Bill-Pay, but that's all I can do. I think it is unfair and should be illigal for the bank to charge such fees in this case, knowing they will deduct it from my check as soon as it is deposited, causing me further problems paying my bills.

    July 27, 2011 at 3:24 pm |
  17. Lowly Taxpayer

    wanna get the budget settled? Kick everyone save the senate and house reps outta the hill (including aides, reporters and tours), turn off there cells and computers and lock all the doors and then tell em all they can not come out till its settled and watch how quick it will get done, and without the "i wont sign if you do add this" riders.
    Just the lowly opinion of your basic taxpayer.

    July 29, 2011 at 2:21 pm |
  18. barb

    display for the american people the salaries and health care benefits and all perks for the house and senate members who apparently do not live in the same world as the rest of us
    cut their benefits salaries and close all the loopholes
    how many social security members have died or had heart attacks over this gov by fear of losing benefits
    america is the joke of the world it is more than disgusting remember to vote them all out and revolt

    July 30, 2011 at 2:29 pm |
  19. Mike

    Talking about the military and the $700,000,000,000.00 annual spending really makes the common american dizzy when it comes to our budget deficit. All though tragic that the poor kids who already receive there food, housing and medical from our U.S. Military may not get their paychecks to pay car payments, credit cards and extra outside housing the Social Security problem is far more serious. Many of these Seniors, disabled and mentally handicapped people pay for their food, housing and medical out of checks the government doesn't want to send. Remember, the people in the military volunteered for their positions within the military while many of the disabled were born with conditions not even allowing them to work or share in the same opportunities. These handicapped individuals are the same ones that the Federal Government feels it all right not to give checks to. They don't have a barracks to return to or a mess hall to feed from or a military doctor to get help from as all they have is their social security and medicare. These very people can't even fend for themselves should they wind up in the streets from not being able to pay rent. It's sad about the military but, I think it's time our troops come home and stop gouging the elderly and disabled for their pay checks. Remember, the military already provides essential needs including clothing when the elderly and disabled don't have that luxury to fall back onto.

    July 30, 2011 at 6:58 pm |
  20. Mike

    Remember, back in the War Times soldiers didn't receive any pay for fighting.

    July 30, 2011 at 7:06 pm |
  21. Eileen Curras

    steve u, I do not think that law makers do not think. The problem is that there are not jobs. We have become victims of the Super Ego.

    July 30, 2011 at 7:48 pm |
  22. joshua

    it is scary reading the above comments. How is it that no one seems to understand that raising taxes on the rich will not solve the budget deficit? So once we tax the rich and we are still short 1 trillion dollars, who do we tax next? That would be everyone. Thanks to the Obots, we are all going to get hit with higher taxes. Most will see it as a loss of mortgage deductions from your federal taxes. That is now a given. So anyone with a 200k home mortgage, get ready to see a loss of 500 to 600 per month. Thanks to the Obots, we will be printing another 2.5 tirillion in paper money, that will cost each of us 10% in inflation. Many of us who live pay check to pay check are going to find ourselves on the brink of bankruptcy. How many families will lose their homes because the liberals in washington would rather raise taxes than cut spending? Thanks to the obots, after raising the debt and printing more money, we will probably see a greater loss of tax revenue. Thanks to the obots, we are only printing enough money to last until after the 2012 elections, which means that we will again see taxes raised, more people bankrupt and more people unemployed. IF only we would cut spending now, we would end this whole charade.

    July 31, 2011 at 4:58 pm |
  23. Jean R Jumelle

    As someone who become a US Citizen, I feel so sorry for the people of this country because after we keep making mistakes after mistakes, we're keeping on doing the same over & over. Now American brothers & sisters when are you going to wake up & play smart politic. After you've elected Obama to fix the problems of our country, next stupid thing that we do is to elect a bunch of hypocrites Republican who call themselves Christians, when really they are a lot of evil followers who do not for the poor people at all. The only thing that they care about is only power & the rich. So why don't you wake up America? When you Elect a Democrat President you have to remember to elect the Senators & representaives who are Democrats also, same for a Republican President, this way there won't be no more blaming game.
    Don't you realize America the only thing that those evil Republicans want to do is cutting & cutting, so ask yourselves America. who's going to suffer the rich or the poor?

    August 1, 2011 at 1:28 pm |
  24. W.Sturges

    Cut Spending, WE THE PEOPLE NEED TO STOP PAYING CONGRESS UNTIL WE HAVE A HIGHER INCOME THEN EXPENDITURES. ^^ Needs to be in the Constitution

    Want to solve the Economy problems here is the simple way.320 +/- Americans
    We as a people need to tell ARE EMPLOYEES to STOP doing what they please and DO there JOBS and that is what we as a people want. We all want to DEBT problem fixed. So we all need to tell them what they need to do and if they don't then they need to be REMOVED from office not voted out but KICKED out.We have all had to cut things in are personal homes to pay are bills, Congress NEEDS to do the same. No not all cuts are going to be liked but they need to be done.On Both sides of the isle
    Remember my fellow Americans
    We the people put them in office to do what we say.

    August 1, 2011 at 2:42 pm |

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