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Democrats Approve Short-Term $290 Billion Increase In U.S. Debt Ceiling Limit To $12.4 Trillion
From Dow Jones:
WASHINGTON (Dow Jones)--The U.S. House of Representatives on Wednesday approved a short-term $290 billion extension in the nation's debt ceiling, delaying a decision until February about a larger increase in the borrowing cap.
The vote comes less than a week after House Majority Leader Steny Hoyer (D., Md.) said he intended to seek a $1.8 trillion increase in the ceiling to support federal government borrowing through 2010.
A decision was made to seek the more modest increase after it became clear the larger increase may have failed to win support in the Senate.
The Senate must still take up the two month increase, which it is expected to do next week.
House lawmakers voted by a razor thing margin of 218-214 to pass the borrowing increase. On most major pieces of legislation, 218 votes are required for approval in the House.
Not a single Republican lawmaker voted to support the hike. They argued that increasing the debt ceiling was giving the Democratic majority and the Obama administration a license to spend more money.
The increase in the debt limit raises the total debt the federal government can hold to $12.394 billion from $12.104 billion.
Treasury officials have warned the current cap will shortly be hit, requiring the ceiling to be increased.
Increasing the debt ceiling is largely symbolic as the public debt is the accumulation of past deficits, or money already spent.
But were the U.S. to breach its debt limit, it would default on its obligations, potentially lose its prized top-shelf credit rating and have to pay significantly higher interest to its creditors
Such a scenario, albeit an extremely unlikely one, would have tremendous ramifications for the wider financial markets.
The federal budget deficit reached historic levels of $1.4 trillion in fiscal 2009. Through the first two months of fiscal 2010, the government is on pace to surpass that level.
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Is it sad that I see this as good news? I'm just grateful that it wasn't the 1.8-1.9 trillion they wanted at first...so what's the over/under on months before we got to juice this pig again to all new levels of madness?
and how much do these numbers matter when
A senior Treasury official told CBS News that the department has some "extraordinary accounting tools" it can use to give the government breathing room in the range of $150-billion when the Debt exceeds the Debt Ceiling.
In other news, we know who hired all of Enron and Arthur Andersons old accountants.
I believe that they are referring to tapping the government's Thrift Savings Plan. http://www.govexec.com/dailyfed/0909/092409pb.htm
Also, not sure whether the TARP paybacks increase the gov't's spending power without adding more debt from a debt ceiling perspective. It is does, then the timing of all these paybacks may benefit the gov't as well as potential bank bonus recipients.
they can unload their us bank common equity positions purchased continually since March....handsome profit I might add...
Yup. Apparently we passed the limit but no one did anything.
http://www.cbsnews.com/blogs/2009/12/16/politics/politicalhotsheet/entry...
The latest calculation of the National Debt as posted by the Treasury Department has - at least numerically - exceeded the statutory Debt Limit approved by Congress last February as part of the Recovery Act stimulus bill.
The ceiling was set at $12.104 trillion dollars. The latest posting by Treasury shows the National Debt at nearly $12.135 trillion.
A senior Treasury official told CBS News that the department has some "extraordinary accounting tools" it can use to give the government breathing room in the range of $150-billion when the Debt exceeds the Debt Ceiling.
$290 billion for 2 months, works out to around your $1.8 trillion number for the next year.
Ecch.
...and this is why no one extends credit to black people and minorities. I happen to be one in a similar situation.
It real deficit is not 1.4T !!
http://sroblog.com/2009/10/23/real-2009-budget-deficit-1785603936384-06-...
The real deficit is not 1.4T !!
http://sroblog.com/2009/10/23/real-2009-budget-deficit-1785603936384-06-...
Well, that should tie us over until about mid-January
Funny to watch them try to deal with it.
So I guess they voted against 99% of the US population. An increase is an increase, no matter how small it is. And they will probably rasie it again when the next crisis warrants immoral actions as such. Whats the point of even having a government when they are not looking out for the people and their children. If I was under the age of 30, I would be totally pissed off with such government policy.
I'm 26 with a 1 yr old son, and I'm furious. The outrage at the elderly will get worse. Run and hide senior citizens.
I was always beyond anger too until I realized that there wouldn't BE debt denominated in dollars for my kids to worry about. Bone crushing poverty and limited to zero opportunity there will be plenty of however.
200 billion or 9 times that number - who really cares at this point? Grab some popcorn, a beer, trust in your ability to respond to change and watch the fireworks. We've hit Idiocracy levels of dumb. "I like monay!"
I'm 24 with 1 yr old Kalashnikov, and I'm also furious...
Buy a car from this guy and you will have twins - really worth watching.
http://www.youtube.com/watch?v=FNmi-bBhWG8
I am a 57 year old with two 22 year old sons and I am furious at the generation of subprime financial and political elite that got us here and destroyed our nation more completely than a devastating military defeat
As another example of the sub prime thinking found in every generation run and hide yourself...you are not equipped for a tough time and the long haul if thats the way you think
Here is a clue:
It aint young and old. Its:
1) The powerful and their servants and flacks against the rest of us.
2) The shortsighted and stupid who take up space with misguided anger
Already there. I wonder how long this will tide them over before a larger increase given the budget deficit has grown so much in recent years.
"If I was under the age of 30, I would be totally pissed off with such government policy."
Who fukkin' cares? It's not like we have jobs and pay taxes anyway.
Many of us that are under thirty are just trying to find jobs to support our families in the recession that people older than us created by living high on the hog for the last thirty years.
Thirty? Try at least 60 or more years. The Ponzi scheme was in full swing by my elders when I grew up in the 1970s. (For all I know, my parents were Ponzi'd by their parents and grandparents just as my parents and grandparents Ponzi'd me and people my age.) It has, of course, grown larger, as Ponzis must do.
Direct your anger at older people if you want, that feeds the "divide and conquer" meme that suits TPTB very well. Get out and vote for the party of big government, or the party of bigger government; the party of war, or the party of more war; the party of MIC kleptocracy, or the party of enviro kleptocracy; the party of suspending habeus, or the party of suspending habeus.
Or, choose to direct your anger at your "elected representatives" in our "representative democracy" that was never ever meant to be one. Rail against your state's major parties that have sealed power to themselves with ballot access controls. Know that there are some of us who've been intellectually (and financially) supporting the Austrian school, Ron Paul, and the Mises Institute for decades. While you're bitching at me know that the only reason you know who Ron Paul is is because of some people my age.
The value of any democracy is measured in the range of private affairs that are outside the reach of the democratic process. I've been screaming about this for decades; until recently, no one listened. Do you have any idea what it's like to live, work and raise children for twenty years in a world you know has gone mad and is rushing headlong off a cliff? Friends and relatives think you're a goddamned loonie? "We can't keep spending money like this." "Show me in the Constitution where it says we can invade a foreign country because we think they might have WMDs, or because the UN wants us to."
"Hahahahahaha fucking loonie."
The world can remain nuts longer than you can remain sane.
Edit: you have no fucking idea, no idea at all, how fucking scared I was when this crisis broke. Please, god, I don't want to be right.
Unfortunately, for us all, you are.
If they increased the full 1.9 trillion right now, it would jack the long end of the curve such that Bernanke would have to collapse equities.
At least he'd have something to do other then sit on the rates...
$290 billion works out to roughly $2000 per taxpayer. The federal government is taking out a credit line in our names and off they go to spend! spend! spend! No big deal, we'll just work until we're 80 years old to pay it all off.
I wish we got at least a fucking bridge or something... but right now we're just giving Shitygroup tax breaks.
Or you can follow my route and go expat. You still have to pay US taxes but sets up the possibility of changing citizenship (after the required waiting period) before the rest of the huddled masses yearning to breath free start seeking asylum.
and we get the foreign earned income tax deduction!
I'd be happy to be working until I was 80.
That isn't happening in this economy.
+1 And if it does, that will mean even fewer jobs for younger people.
I expected sth. like 2+ trillion raise to compensate for the loss of money velocity and to monetize banking and private debts.
And I am having it in 2 months; you can bet your ass on it.
They will need to raise $2T in 2010, just to cover what they KNOW is coming. $250B a quarter. I can promise you, by mid year this will be like kids hitting a bowl of punch at a party and NOBODY is going to either notice or care. Ever again EVAR for ever and eternity.
But we will know by the end of 2010 if there is any cost to this, or if it is simply the new normal. And if it's the new normal... then I want my $1,000,000.00! Paper is fine. Wants. Give me.
cougar
'The vote comes less than a week after House Majority Leader Steny Hoyer (D., Md.) said he intended to seek a $1.8 trillion increase in the ceiling to support federal government borrowing through 2010.
A decision was made to seek the more modest increase after it became clear the larger increase may have failed to win support in the Senate.'
290 billion is cab fare, ain't taking you to midterms.
Is this telegraphing a trap door early in 2010?
I wonder how many of our leaders know what a trillion is. I am pretty sure sure the "Great One" doesn't.
What's really sad is that 80% of these blokes are going to get re-elected next year. The other 20% have already found a platinum parachute with some defense contractor or lobbyist firm and are cashing out early.
Okay, you're right. But I'm really having a hard time getting worked up these days over who is elected or re-elected or anything. That kind of thing is so 2007.
This is scary. This is full-on insane. These guys have NO IDEA what they are doing, or who is doing it, or when it's going to stop, or how they are going to stop it. NO IDEA. No clue, no shadow of a clue, no clue particle, no clue in point-space, no theoretical clue, no clue thought experiment, and no bound set in the universe overlaps or includes the set of clue. No. Clue. At all.
And the next bunch will have even LESS clue. Fact. I'll even suggest that the next round of elected beach apes will be in it STRICTLY for the loot, on the explicit assumption that there is no future and no risk of future punishments. Period.
We are in for a wild time, my friends.
cougar
It is all crystalizing before the eyes of those who will look. Democracy is not THE problem; free markets are not THE problem. The masses argue over meaningless tags/terms. "Free markets" within a Democracy/Republic = EPIC Fail.
This is all very sad to me, but maybe there is hope. It is possible that free markets (and capitalism) can thrive when the democratic gov't has to deal with term/spending/taxing limits that can not be changed. But I fear that pipe dream is only possible in the 'next' great free society; no longer possible here.
Free markets are not the problem, but democracy IS. Democracy is two wolves and one sheep voting on what to have for dinner. Cliche, I know, but it is absolutely true. "A republic, if you can keep it."
Cougar keep it coming. They all suck. I am starting to be very confused on the difference between a white guy from CT that thinks he is a Texan vs. a half black dude from Illinois who's dad is from Kenya and mom from Kansas! What the hell is going on????
Wait until hyperinflation makes this vote a daily occurrence.
It is a small step for congress and a giant leap for mankind.
I just love dollar carry trade; it destroys all fiat funny money by a slow death of 1ooo cuts.
giant leap off and over the cliff. All nations are now enjoined in the race to contraction and poverty storms. All thats left worthwhile to expand is our conciousness. It begins with true self awareness which has its roots in humility.
Humility comes after a fall. Having fallen many times i welcome you all into the future .
P.S. Am thankful for the beating life gave me. You will be too!
Good Times.
Any time you meet a payment.
Good Times.
Any time you need a friend.
Good Times.
Any time you're out from under.
Not getting hastled, not getting hustled.
Keepin' your head above water,
Making a wave when you can.
Temporary lay offs.
Good Times.
Easy credit rip offs.
Good Times.
Scratchin' and surviving.
Good Times.
Hangin in a chow line
Good Times.
Ain't we lucky we got 'em
Good Times.
Your comment was Dyn-o-mite!
Nothing makes me want to punch a kitten more than Republicans who spent the last eight years trying to out-spend Democrats, whining about giving Democrats a license to spend.
You are SO right. I am sick, SICK, I tell you that I have had to endure 17 years of democratic policy. There was democrats, then RINO (republican in name only) republicans, now more democrats. Thanks for reminding everyone that they have the LIBERAL POLICY to thank for this mess.
For how many years have we been hearing, "woe is us"?
Let's get this thing done and over with already.
I'm tired waiting for this financial disaster. How many more years until it literally happens? I'm tired of the talk, I want to see it all go down.
I agree, been agonizing about the decline of the country for 18 years since I left the republicans and started my journey through Austrian economics and the other basics of libertarianism. Now I think it is best to just get it over with pass cap and trade, universal health care, more taxes on soda, wars on Pakistan and Iran and all drugs...please make it a 2 trillion dollar deficit next year. Living throught the slow decline is wasting years of my life...I'd like the tree to fall down....let some light shine down onto the groudn so a new tree can start growing.
True.
USA = greatest manufacturer of promises in human history.
The Dem Critters appear to be turning on each other.
Their brains are sugar plummed with ObamaChange that can't possibly be paid for. And the '10 incumbent crowd are tied to the train tracks nervously awaiting the "The Little Engine that Couldn't" headed their way.
Snidely Pelosi curls her mustache.
TOOT TOOT !!
This news article seems to have quite a tilt to it. It seems to imply that WE CAN'T STOP BORROWING.
"Treasury officials have warned the current cap will shortly be hit, requiring the ceiling to be increased."
or... It could stop borrowing money.
"Increasing the debt ceiling is largely symbolic as the public debt is the accumulation of past deficits, or money already spent."
It's not largely symbolic, unless the symbol is a big middle finger to the American people. Increasing the debt ceiling says "Go spend more money".
"But were the U.S. to breach its debt limit, it would default on its obligations, potentially lose its prized top-shelf credit rating and have to pay significantly higher interest to its creditors"
or... It could stop borrowing money. Logic would tell you that increasing the ceiling would cause it's credit rating to go down.
What would happen if it hit the debt ceiling? Is there legislation to require specific action? Maybe the impact would knock some sense into 'em?
Can we please just hold this ship afloat till I'm 80?
BTW, I'm only 26.
To all people younger than 50 and all future unborn citizens of the Us of A:
Congratulations!
The current generation in power sold you out to be the new slave in the future.
Yes, by all means let's direct our anger at each other.
Ready, fire, aim.
Go read A People's History of the United States by Howard Zinn.
This country was founded by aristocrats who have always abhorred the unwashed masses and who have always kept the boot to the workers' necks.
Every benefit to the worker was gained thru solidarity and by demanding that elites share some iota of their loot.
Nothing has changed. Nothing is different. After riots in the 30's some rights were given to the workers. After riots in the 60's things changed somewhat for the blacks and women.
Gains are never made without forceful demands.
Yeah, let's all follow Zinn the pied piper. After all, nothing's less contradictory than advocating a political philosophy which demands that the state provide for your every want and desire, yet would never dream of controlling your individual liberty.
He's a shitty historian too.
218-214 can someone please post the vote TALLY so we can see who needs to be voted out.
All of them. And don't bother voting for anyone with a D or R after their name to replace them unless you want more of the same in a different dialect.
12.4 Trillion debt
population according to current US population clock 308,167,067
what's a US trillion? so I can do the maths?
who cares anyway, why bother...... it is only junk UZimDollars man (they have a spanking new machine lately that doesn't go on fire on the overdrive setting) but don't use if for toilet paper or you are going to get in big trouble for blocking the loos... cheepie US paper is no good for bum cleaner... use it as very cheap firelighter or roll it up and stick some cotton wool on the end... cotton bud
oh there are no end of ways to get rid of your junk paper......
Me thinks the spring thaw will bring out the emotions welling up in the heartland. Lots of hunting practice these days. Just too damn cold to stand with a sign.
I am especially interested to see what April 15, 2010 will bring. Think we should plan something?