U.S. eats up most of debt limit in one day

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Geriatrix

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http://www.washingtontimes.com/news/2011/aug/3/us-eats-most-debt-limit-one-day/
U.S. debt shot up $239 billion on Tuesday — the largest one-day bump in history — as the government flexed the new borrowing room it earned in this week’s debt-limit increase deal.

The debt subject to the statutory limit shot way past the old cap of $14.294 trillion to hit $14.532 trillion on Tuesday, according to the latest the Treasury Department figures, which are released on the next business day.

That increase puts the government already remarkably close to the new debt limit of $14.694, which means one day’s new borrowing ate up 60 percent of the $400 billion in space Congress granted the president this week.

Debt numbers go up and down regularly, depending on what the Treasury Department is redeeming or issuing on any day, but have been on a steep upward trend for the past decade as spending has ballooned and revenues have fluctuated.

For the past 2½ months, though, the number essentially was frozen as the government was poised to reach the borrowing limit set by law. The Treasury Department used extraordinary means to stall, but was about to run out of room on Tuesday.

With little time to spare, Congress and the White House managed to cobble together a deal to grant new borrowing authority: an initial increase of $400 billion, coupled with future increases.

The fight was so bruising that President Obama on Wednesday took his debt team out to celebrate by buying them hamburgers at Good Stuff Eatery, a well-known burger joint on Capitol Hill. The White House said it was a reward for their “nonstop” work over the past few months.

At a meeting of his Cabinet later in the day, the president said the debt increase gave the government some room to maneuver.

“We have now averted what could have been a disastrous blow to the economy. And we have identified on the front end over a trillion dollars in spending reductions that can be done sensibly and safely without affecting core programs,” Mr. Obama said.

He also looked ahead to the committee the debt deal creates and charges with finding an additional $1.5 trillion in deficit reduction by the end of the year.

“It’s going to be challenging work, and I’m encouraging Congress to take it with the utmost seriousness,” Mr. Obama said.

The deal called for caps on future spending and granted the president the power to win an initial $400 billion debt increase, with another $500 billion coming later if Congress doesn’t manage to block it. Yet another increase is contingent on the committee’s recommendations.

Former GOP Sen. Alan Simpson, who co-chaired the deficit commission that Mr. Obama formed last year, called the spending limits in the bill “a baby step of the first order.”

“Disappointing would be half a world. Until they get to the point where they can change the ‘B’ in billion to a ‘T’ in trillion, we are not going to get anywhere,” he told Bloomberg Television.

The previous one-day record debt increase was $186 billion, set on June 30, 2009.
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The bubble will burst again.As long as the deficit grows in the trillions,the debt crisis will worsen. Sugar coating problems by bail outs will not help, who will be paying for this ?
 
marine1 said:
Stop sending money to Africa and the Arabs countries for a start?
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I see killadoob has already responded, but yes, the aid to the [-]****holes[/-] third world is just a tiny amount compared to what they spend on their stupid wars and other junk. Aircraft carriers, nuclear subs and fighter jets aren't cheap, they could just as well be running on liquidised cash instead of fuel.
 
anybody heard the morning business news ? Apparently the world financial markets are Fcksed again. 50 million quid wiped off the FTSE.

Europe is trembling AGAIN.
Am pretty sure JSE will be down when it opens.
 
killadoob said:
That is a drop in the ocean marine, totals around 57 billion a year. They blew 239 billion in a day :D. Stop the wars is the only way out of this.
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I agree, "hot" wars don't work unless you attacked. Go back to the cold war and sanctions method. Starve the Fu#### and point nukes at them. Takes longer but doesn't screw the economy.
 
Real money affects normal citizens not governments, the US controls resources needed to make sure they stay in the wars they have started. All of US' wars are concentrated on countries that produce oil or any other resource needed to have the world functioning. Syrian government is doing the same thing as Gaddaffi i.e. killing one's own citizens yet the US has not applied for any UN resolution to attack the country because the country has got no oil or gas. How can you raise a debt limit? Why other poor countries don't do the same? Goes to show that the US is in control of resources and money supply is used to manipulate global economical systems. Afghanistan is the biggest exporter of opium and we all know that governments are the biggest drug dealers
 
Well afghanistan is the biggest exporter of illegal opium, Australia is largest exporter of legal opium. 50% of the worlds legal opium comes from aus.

Sure makes those bunny rat creatures happy, forget their name.
 
DJ... said:
Yes, but there will be large reforms to target the upper echelons of society too. If you believe Obama, that is.

*cue tinfoil hatters*
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He may do it if he is re-elected for now he is a lame duck that cannot do anything. Stupid that after 2 years a president basically has no more power unless things go his way mid term. Basically if obama runs two terms he may only have 4 years to do anything he wants to which is not a very long time actually.
 
killadoob said:
He may do it if he is re-elected for now he is a lame duck that cannot do anything. Stupid that after 2 years a president basically has no more power unless things go his way mid term. Basically if obama runs two terms he may only have 4 years to do anything he wants to which is not a very long time actually.
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Hardly. It's quite an achievement to blow all your political capital in just 2 years like Obama and the democrats did. If the leadership are arrogant drunk on power morons who ignore the wishes of the electorate then they'll be reined in, hamstrung and forced to compromise.
 
lester.jpg
 
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