Skip to comments.Expect Debt Limit to Be Reached Near End of 2012
Posted on 11/07/2012 4:07:15 AM PST by tired&retired
On Aug. 2, 2011, President Obama signed a deal he had negotiated with congressional leaders to increase the debt limit of the federal government by $2.4 trillion. But, now, after only 15 months, almost all of that additional borrowing authority has been exhausted.
Although Treasury revealed in its statement on Wednesday that it was likely to hit the debt limit by the end of the year, Treasury Secretary Geithner failed to respond to a letter that Senate Finance Ranking Member Orrin Hatch and Senate Budget Ranking Member Jeff Sessions sent to him on Oct. 15 demanding that he notify them by Nov. 1 what he believes to be the exact date Treasury will hit the debt limit and the date he expects to begin using "extraordinary measures" to avoid it.
As of Oct. 31, according to the Daily Treasury Statement (DTS), the portion of the federal debt subject to the legal limit was $16,222,235,000,000--just $171.765 billion below the $16,394,000,000 debt limit.
In October alone, according to the DTS, the debt subject to the limit increased by $195.214 billion.
The GOP gave them the ceiling rise last time.
Why won’t they give it to them this time?
There is no debt limit, they will just do away with that once and for all
Here we go. The deficit needs to be dealt with in the face of an electorate that just voted for a Nanny State president. Also, the 617 billion dollars taken out of medicare was not a phony political line. That really does happen under Obamacare. I’m not sure how this plays out for the nanny state crowd, either.
Finally, on a less imimnet problem, we have got to do immigration reform. Hispanivs would naturally fit into a GOP coalition so, that issue has got to be dealt with soon. We need their votes. I’m not talking about amnesty. I’m talking about real immigration reform (enforcible border policy, guest worker program...you know real reform). This is popular with the public and needs to be resolved immediately.
They will either raise it, make it raise automatically annually forever or just abolish it.
Beohner can’t wait to lick Barry’s shoes
Print more friggin money like they did last time.
It’s not fr me to worry about Obama is in charge let him worry about it.
Money now magically grows from trees. Welcome to Weimar 2012.
So, how did that work out yesterday, those natural Republicans?
and why do so many assume that hispanics are illegal or only care about this issue anyway?
Don’t see how we survive four years of that. The currency has to break at some point.
Do you really think Obama cares?
Get prepared for the currency crash then
HELP IT HAPPEN.
US debt: take a penny, double it every year, how long before....?
I live in California. As long as there is no final immigration reform bill they will naturally vote for the Dems..Period. They don’t trust the GOP. However, they have great family values, are hard workers, and are srongly catholic. We need this group on our side or we’ll never win another election ever. To achieve this, we need to push immigration reform to get this isssue off of the table. Again, I’m talking about real reform..some sort of guest-worker policy, fines for employers of illegaals, etc. The polls show most Americans support this sort of thing (even if most hispanics want open borders) and we better bring this issue to the forfront fast. Once this issue is put to bed, we can start wooing this voter with our principles. Seriously-This should be goal #1 this next two years..
Agree. Do nothing. On the debt ceiling and the fiscal cliff. Give the public exactly what they voted for.
What immovable wall? The Repubs will happily approve another extension.
The democrats floated that idea last time, that the prsident just do away with the debt ceiling unilaterally and not have to wait for Congress
What Constitution? What checks and balances?
Works for the Hugo Chavez governing model
who gonna stop him? John Boehner?
Design $1 trillion bills with Obama`s face on the front and fire up the printing presses.
Most federal revenues come from individual taxpayers. Personal income taxes are the largest portion of total tax revenues. Social Security and Medicare payroll taxes are the second-largest source.
PERCENTAGE OF TOTAL FEDERAL REVENUE (2011)
Source: Congressional Budget Office.
Total Revenue: $2.3 Trillion (2011) $2.469 trillion (2012)
Social Security $819 Billion(2011) $841 billion (2012) (Running at a deficit)
Net = $1,481 Billion (2011) $1,628 Billion (2012)
$1,481 B Net Revenue / $16,200 B debt = 9.14%
$1,628 B Net Revenue / $16,600 B debt = 10%
It is not possible to cut spending and raise taxes combined to balance the budget. The head in the sand approach will not work. If they try to inflate away the debt, the interest alone will exceed our total revenue.
The way the government is printing money, it is like playing Monoply against the bank!
Faster than I hear anyone saying on FR this morning!!
The U.S. Credit Rating will be downgraded again before the end of this year! Soon after that, the U.S., for the first time ever, is going to NOT BE ABLE TO BORROW MONEY! Then, tens of millions of the little socialists/marxists Free Government Credit Cards start getting rejected in the check out line! Then, just like Greece, millions of them hit the streets and RIOT because they and their families are hungry and the BASIC economic laws have bit them in the ass and they are madder than hell and too stupid to look in the mirror. It’s somewhere around that point that all you freepers counseling against revoloution are going to find that you have to, as Nicholson said, “pick up a weapon and man the wall to protect yourself and your family”. The “Revoloution” will start from the left, not the right, of the U.S. political fulcrum and then it will COME TO YOU whether you like it or not. AND, it IS coming as sure as the sun comes up as very soon, when the FREE government plastic money starts being rejected in check out lines, the liberals will print money and distribute it a million times faster than they already are and Super, Uber, Mega Inflation now descends upon all of us. At that point, it will take a wheelbarrow of dollars to buy a dozen eggs kinda sorta like South American countries discovered years back! Then, Obama’s Free Cell Phone minions are gonna come to your neighborhood whether you like it or not and they will kill you if they have to to get what you have! Time to start picking out your spot on the wall.
The only question this morning is WHEN is it ALL going to “hit the fan”? Somebody once famously said “when the citizens of a democracy find out they can vote themselves money from the government trough, democracy is dead”. The so called “American People”, for the first time, unmistakably pronounced themselves Socialists last night. Hello Greece! Goodby USA as clearly The United States of America can no longer maintain to the the Universe at large that it is “United”. Half of us want a Free Government Cell phone and Half of us still want to earn it....it’s as simple as THAT.
Det limit? Wat be dat? You see my new Obamaphome???!!! Dis be off da hook and it be free!
Welcome to the new America.
On the tax increases: Let everyone's taxes go up.
On the defense cuts: Pull military back and let the world burn.
On the debt ceiling: No deal. Default.
If the Obama serfs want to run through their little socialist wheat field, let's set it on fire.
Good! Then the obama worshiping bastards can starve to death.
It is not his shoes Beoher is licking.
Just stock up on whatever you can. No X-mas for me this year, it’s all about stocking up on supplies of every kind.
It will be a hoot watching those stupid Gen-Y bastards try to buy hyper-inflated cereal when they are all out of work. The girls will have to resort to selling those oh so important “lady parts” of theirs for some popcorn.
I totally agree. I do not mourn for Romney’s loss, but for our loss of our country. The government printing presses can’t keep this ponzi scheme going much longer.
Buy Gold and Silver. Do not stay in any fiat currency.
I agree with you.
Typically the risk free rate of interest is inflation rate plus 3 percentage points. Under Bush Sr. the average outstanding maturity of our National Debt was around 10 yrs. Clinton lowered that to around 3 yrs. It is as though we have our country financed on a variable rate credit card right now as the bulk of the debt is short term maturity and thus, very interest rate sensitive.
If they try to inflate us out of this mess with short term debt the interest rates will go through the roof.
Clinton changing the cost of living index in 1992 is what set us upp for this mess. His selling gold futures and currency manipulation allowed it to continue. Bush W is not much better as he continued the practices.
” the U.S., for the first time ever, is going to NOT BE ABLE TO BORROW MONEY!”
They don’t need to borrow money, they print it. Has been going on for a while now. How do you think they keep interest rates low. The Fed is buying its own debt.
Thank you for your post responding to mine. You must have just skimmed over it though because I said exactly what you said i.e. “they will start printing money faster than they already are”.
Nonetheless, what now, is the question for me and my family to ask ourselves because the end result, or “endgame” if you will, of 4 more years of Obama, Pelosi, Reid, Axelrod, Jarret and the electorate that supports them is now, after last night, “absolutely certain”!
Moreover, his certain appointment of judges, and particularly Supreme Court Judges, will shred our constitution, or what is left of it thereby guaranteeing a marxist state for generations to come. I’m a pretty bright guy at 64 and have always been an optimist but as I look around this morning I see no hopeful signs anywhere. The biggest disappointment to me is the Fraud that is the Republican Party. I see a 3 party system coming. It will likely be the center but very LEFT Republicans that choose to stay in that dead organization, the Marxist Party (Dims) and the Constitution Party led by somebody like Sarah Palin. Then, one will have to align with the other to win a national election but right now, the way things are, the Republican Party completely BLUNTS the conservative message and the masses do not “GET!” the conservative message at all. It’s either Liberalism Total (dims) or Liberalism Lite (pubbies). This morning, I loathe the Republican Party more than the Dims and blame them more for the past 30 odd years that have culminated in last night, and I have NEVER voted for a Dim.
To those of you wanting to pounce on Sarah Palin because of this suggestion in this post. Save it! I don’t think most of us want to hear any of that bs until one of you smarter than us people comes up with somebody better to LEAD conservatives! Granted, she won’t likely be elected, but at least the Conservative Message won’t get filtered and watered down by the likes of Karl Rove. With Sarah sitting it out in Alaska, there is no conservative message getting out on the national scene! Things are SO BAD, we now need a George Washington! Where are you George?!
I read lots of good things on FR. I read a few exceptional things. This was exceptional.
Foreign invaders are the enemy, let mehico have Kalipornia and its debt
............thank you for making the effort to post a compliment!
I am very sad at the loss of our country as was certified to us all last night.
What comes next is not good.
I agree. The radical left will never cease their quest until they've had a taste of what they're asking for... so let's let them have it for a while so they can see for themselves why we're against it all.
Conservatives are much more resilient than lefties... so we'll weather that storm much better than they will. Just fasten your seat-belts and try to ride it out... and in 4 years perhaps we can get more momentum out of it all.
“immovable wall? “
What wall? A wall suggests strength and the GOP has no strength. They’ll cave and give Zero whatever ‘limit’ he wants.
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