Posted on 05/06/2012 7:12:56 AM PDT by Son House
The U.S. debt surpassed 100 percent of gross domestic product after the government's debt ceiling was lifted, Treasury figures showed Wednesday, according to AFP.
The debt, which had been in somewhat of a holding pattern over the past several weeks, rose $238 billion after President Obama signed the debt-ceiling deal into law Tuesday to avoid the country's first-ever default.
The package is designed to carve $2.4 trillion from the deficit over the next decade. But in the near term, it granted Washington an increase in its borrowing authority worth the same amount.
With that authority, the public debt has climbed to $14.58 trillion, putting it just over the $14.53 trillion size of the country's economy in 2010.
As the country moves into a league with deep-in-the-red nations like Italy and Belgium, fiscal conservatives say the fight to cut spending is far from over.
Senate Minority Leader Mitch McConnell warned Tuesday that Washington will have another fierce debate over spending the next time the debt ceiling is reached -- expected to be in early 2013. McConnell said Washington should welcome, not fear, that debate.
Bipartisan lawmakers are also expected to get to work soon on a joint committee formed by the newly signed debt-ceiling deal. That committee is tasked with finding about $1.5 trillion in deficit savings, to complement the $900 billion in cuts enacted by the first phase of the bill.
The nation's current deficits were exacerbated by the wars in Iraq and Afghanistan, but are also driven in large part by entitlement programs that will not shrink without fundamental changes to their structure -- officials point as well to lost revenue from the recession, tax breaks and increased domestic spending as contributors to the current deficit hole.
(Excerpt) Read more at foxnews.com ...
Old news. This story is from August of last year.
Uh actually we are at about 1000% income to debt ratio if you count all the stuff promised and off the books. About 150 Trillion. This game is in the final inning....
Yeah, you caught me, I forgot to put flashback in the title, because it is news worth repeating to those who wish refreshing and the DU lurkers that never heard it at all.
Oh I agree, it’s important that people understand this. The situation is even worse now almost a year later. Like you said though, to avoid confusion it is a good idea to put flashback or the bolded date in the title if it’s an old article.
No, the Republican leadership know that obama is playing political games. With media on his side, they could loose it all. After we get a Republican elected as pres. and maybe even the senant, and they still dont cut, we pounce on them. Until then, the games will continue with no cuts.
Another Obama first for the nation. This is “Forward”.
Good catch on the debt-Meister’s rhetoric.
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