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Posted on 10/20/2013 7:07:58 PM PDT by 2ndDivisionVet
The recent bipartisan deal to end the government shutdown and avoid government default, did not raise the debt ceiling but in effect removed any ceiling until February 7 next year.
With no new ceiling to bump against the debt went up a record $328 billion just a day after the deal passed. This far surpassed the $238 billion record set two years ago. The huge leap is largely blamed on the government replenishing its supply of extraordinary measures by repaying Federal Funds it borrowed to prevent hitting the debt ceiling earlier. It will now be prepared if there is no deal after February 7 next year. The debt is rising so fast even a UK newspaper the Daily Mail apparently can't keep up to date: The Bipartisan Policy Center estimated that if the government had extended its debt ceiling in this fashion through the end of 2014, as one Republican proposal suggested, the federal government's debt would have ballooned by $1.1 trillion. At that rate, the national debt will likely grow by at least $282.5 billion on its own by the time Feb. 7 rolls around, bringing the total close to an even $17 trillion. The Bipartisan Policy Center obviously did not anticipate that the very first day the debt would increase by $328 billion more than the total of $282.5 billion they had estimated up to Feb. 7. According to figures released on Friday the US debt is now $17.075 trillion more than the even $17 trillion predicted for Feb. 7.
According to law, once there is "new debt space" funds borrowed under the extraordinary measures must be paid back. The Treasury Dept. borrowed $400 billion beginning back last May. By the time a new ceiling needs to be put in place by February 7, the US debt may already have increased by as much as $700 billion from what it is now.
Groups wanting to contain government spending were not at all pleased by the move to temporarily suspend any debt ceiling. David Williams the president of the Taxpayers Protection Alliance said:“Suspending the debt ceiling without a dollar amount is further proof that Congress is taking a major step backward in fiscal responsibility. A real dollar figure is a constant reminder to taxpayers and Congress that the country is broke. This was done to hide the real debt from taxpayers.”
Government spending cuts associated with the sequester were continued under the deal and if no deal is reached by December 13, they will continue next year: House Budget Committee Chairman Rep. Paul Ryan and Senate counterpart Sen. Patty Murray have expressed optimism that they can reach deals by the December 13 deadline, including in the compromise Congress struck Wednesday that reopened the government and increased the federal debt limit.
An additional $19 billion in sequester cuts would kick in January 15 if the negotiators fail to reach an agreement.
Bump
So why vote Republican? Wouldn’t have happened with Bohner et al.
What to do with $30,000 in an old 401k.
Screw the early withdrawal penalty and taxes. Its worth more now than it ever will be even after the govt takes its “share”.
Too late to get into the weapons panic and make $$ on guns, but Im feeling that cash aint gonna be worth much in a year.
What to do.........
.22LR by the case? That seems to me to be the new $1 bill after the crash.
It means the DC elites are going through money like water.
If the Fed has to do accounting tricks until the Debt ceiling, it means
they burned through more money than was estimated.
Yikes!
As Sarah Palin said, “Don’t tell Obama what comes after a trillion!”
What to do with wealth:
Everyone’s wealth is evaporating, so the demand for everything is evaporating. That means everything is loosing value, the stock market, commodities, currencies, labor, real estate, precious metals, everything. You can’t hide from catastrophically lowered demand.
Me? I’d buy gold and expect it to go down with everything else, but go down a bit slower, and hit bottom before other things. Once we’re at the bottom, take whatever you have, and buy good land.
sure, load all the bloat/pork possible now so when the next due date comes, no problems... right?
They should set the debt ceiling at about $70 trillion just so we don’t have to go through this again until next year.
I just could not let a sentence like this pass without highlighting it. As for commenting on it..."Orwellian" about says it all.
And it better not happen again!!!
***Groups wanting to contain government spending were not at all pleased by the move to temporarily suspend any debt ceiling.***
Temporary, huh? We’ll see...
bump
why does it have to be my birthday?
I was hoping Obama would send me a new NSA-brand laptop for my birthday
In the short term the US stock markets will skyrocket, just like it did in Zimbabwe, because it is valued in US dollars. Foe a time they will pretend these dollars mean the same thing as the old dollars. The state-media will hail it as a great economic sign.
Then comes the wheelbarrows of currency (before their expiration dates) for a loaf of bread, if you can find someone selling a loaf.
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