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Obama To Ask For Debt Ceiling Increase In "Matter Of Days"

Tyler Durden's picture




 

Not even an hour after we asked the question, The Hill gives us the answer: "The Obama administration will be asking Congress to raise the debt limit in the coming days, White House press secretary Jay Carney said on Tuesday. "I'm confident it will be executed in a matter of days, not weeks," he told reporters. The notification by the administration — which had been scheduled for last month — was delayed because Congress has been holding only pro forma sessions. The White House will be asking Congress to raise the U.S. borrowing limit by $1.2 trillion. The move would mark the third and final increase from the debt-ceiling deal reached last year by Congress." Of course, the optics of yet another debt-ceiling increase, even a preapproved one, are simply horrible during campaign season. But such is life. Here is the kicker though: the US has preapproval for $1.2 trillion in debt issuance, as per the August 2011 agreement. So far so good. The problem is that since then the US has issued $900 billion in debt in five short months! In other words, somehow the remaining buffer of just $300 billion, or a final debt ceiling of $15.5 trillion, is supposed to last the US until after the presidential election, because this topic flaring up just before Obama is due to hit the debate circuit will be reelection suicide. So our question is: how will the US, which has a gross debt issuance rate of over $100 billion per month on average, last for a year with just $300 billion in dry powder? And even if the $1.2 trillion count begins from the new request, it still means the new debt ceiling will be breached some time in August/September, as we expected last year when we did the calculation assuming a $180 billion gross issuance per month ($900 billion in 5 months). We can't wait to hear the OMB's explanation.

 

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Tue, 01/10/2012 - 15:22 | 2051254 Irish66
Irish66's picture

He has got to stop reading Zero Hedge.  Hi Mr. Obama

Tue, 01/10/2012 - 15:25 | 2051266 johnu78
johnu78's picture

Obama is making the whole world turn into sh*t!!!

 

-John
http://www.youtube.com/johnu78

Tue, 01/10/2012 - 15:33 | 2051316 Comay Mierda
Comay Mierda's picture

they monitor this site closely.  it is a "terrorist" site by their standards.  thought this was interesting too: "True Patriots" are the new terrorist group in Tom Clancy's Rainbow Six game.

http://www.naturalnews.com/034592_Rainbow_six_video_game_domestic_terrorism.html

 Why do you think all the pre-conditioning is happening?  Welcome to the new Amerika.  Boycott this piece of shit game

Tue, 01/10/2012 - 15:38 | 2051339 Obummer
Obummer's picture

Ladies and gentlemen, fellow Americans, good citizens of the world. Today I would like to talk to you about our Federal debt ceiling.  As you may have heard in some of the unauthorized (yet closely monitored) press, we are once again targeting the debt ceiling ahead of our original schedule.  This, of course, is good news for the American people.

With our economy now fully out of recession we cannot afford to take a single step backward.  This is why even in the face of massive deleveraging in the financial markets we have continued to improve our government programs and keep America on track, with government filling the role it was designed to fill; helping the American people.  We are Americans helping Americans win the future.  And targeting and exceeding our goals with the debt ceiling is a vital part of this role.

You may hear some say that debt is damaging the economy, that the debt ceiling should not be targeted for additional enhancements.  Let me be clear; the debt ceiling target will be met, and it will be exceeded.  We will succeed in this.  As long as I am President I will make sure that we succeed in this.  Those who fight us will be brought to justice, and we will once again have prosperity in all of this great land.

Thank you, good night, and God bless America.

Tue, 01/10/2012 - 15:51 | 2051407 Manthong
Manthong's picture

No problema..

Since he used the last increase to pay back the $.25 Trillion he drained from the Federal Employees Retirement System when the country was last going bust, he will have all of that money to use again in an emergency.   Oh, wait..

Well, he has the surplus from the Social Security System to tap then  Oh, wait..

OK,  the Postal Service retirement suplus?   That doesn't exist either?

Well, where the heck is a pile of money he can use next?

He's got all the government retiree's money now.

There are no more excess retirement funds left for them to grab now, is there? 

Tue, 01/10/2012 - 16:15 | 2051514 YBNguy
YBNguy's picture

Whats the point of having a debt 'ceiling' again?

Tue, 01/10/2012 - 16:32 | 2051570 Born Patriot
Born Patriot's picture

I'm SICK AND TIRED of this unamerican Muslim president ruining this great country. It's become clear that multiculturalism has FAILED, and the only person willing to preserve American culture is RON PAUL.

Tue, 01/10/2012 - 17:05 | 2051671 Campagnolo
Campagnolo's picture

shut up redneck!

Tue, 01/10/2012 - 18:16 | 2051950 Urban Redneck
Urban Redneck's picture

You called?  Or are you shrieking at the shrub?

There's a reason we fight for the freedom of speech, even if propagandists use that freedom to smear their opponents through false association.  His name should be changed, though, since he has about as much to with Patriotism as he does Ron Paul.

 

First they came for the terrorists, and I did not speak out—

because I worshipped a different God;

 

Then they came for the debtors, and I did not speak out—

because I owed no one;

 

Then they came for the elderly, and I did not speak out—

because I received no Social Security;

 

Then they came for the sick, and I did not speak out—

because I needed no medication;

 

Then they came for the starving, and I did not speak out—

because I had no hunger for SNAP;

 

Then they came for the defenseless, and I did not speak out—

because I had guns;

 

Then they came for me--
and there was no one left to speak out for me.

 

Wed, 01/11/2012 - 11:32 | 2054483 StychoKiller
StychoKiller's picture

Hopefully, your buddies, Smith and Wesson, spoke on your behalf...

Tue, 01/10/2012 - 17:32 | 2051774 karzai_luver
karzai_luver's picture

It eats the peas or it gets the drones, southern bitchez!

Who cares if the clown is a Muslim, what they can't be prez or something?

We have had every other flavor of the month, why not!

 

Wed, 01/11/2012 - 06:54 | 2053762 Element
Element's picture

I'm SICK AND TIRED of this unamerican Muslim president ruining this great country.

 

I've never seen a scrap of evidence that suggests Obama is, or ever has been, a mooslem.  There are so many real reasons to pound that bitch, with mountains of genuine evidence, so why would you bother concocting obviously false baloney about him?  Can't you just attack the shit out of him for the real stuff he's done? (and yes, we've all seen the faked birth certificate, so spare us that)

Tue, 01/10/2012 - 17:13 | 2051678 HoofHearted
HoofHearted's picture

So that we can watch that video of the kid on South Park depositing the $100 check (it really should be a $1.2 trillion check) and hearing, "And poof.....it's gone."

Or so that we can watch that video of the guy asking for his own debt ceiling raise and then foisting the paperwork on his daughter.

That shit always makes me laugh. Both of them. Feel free to add stuff, like the video of the bears discussing QE....

Tue, 01/10/2012 - 17:12 | 2051706 MiguelitoRaton
MiguelitoRaton's picture

Upon reading this post...Obama sends black helicopters, complete with tazers, hoods and plsticuffs to Zerohedge offices...be careful out there guys.

Tue, 01/10/2012 - 15:45 | 2051341 nope-1004
nope-1004's picture

Wash, rinse, repeat.

Without debt, the current system collapses.  This failed monetary experiment we are living in and calling an "economy" is nothing more than a charade.  Sucks if you've got a conscience and don't believe financing your future is how you get ahead.  But hey...  who am I to step on the American Dream?

 So exactly why is there a debt ceiling again?  Does it serve a purpose?

 

Tue, 01/10/2012 - 15:34 | 2051319 Pladizow
Pladizow's picture

Whats the over/under on when Washington will get rid of the debt ceiling altogether?

Tue, 01/10/2012 - 15:45 | 2051381 therearetoomany...
therearetoomanyidiots's picture

definitely 

 

it may be obama who will 'have to do something, because congress isn't doing anything'

 

"- there ain't no constitution - only what I say"   Broke Obumbler

Tue, 01/10/2012 - 16:09 | 2051490 pupton
pupton's picture

My exact thought.  I'd say the odds are better than 50-50 that at some point (who knows when) they will either extend a literal blank check/unlimited ceiling/abolish the ceiling, or they will choose to ignore it completely. 

If a dollar collapse comes, and the interest rates skyrocket, and all of a sudden borrowing has to triple or more in a year, I would expect that the ceiling would have to be raised in 10-20Trillion increments, at which point you might as well through in the towel and admint defeat.

Tue, 01/10/2012 - 20:10 | 2052329 Cruel Aid
Cruel Aid's picture

Semantics, keep raising or write a 'who are we kidding'/paygo bill. Aren't we there?

Wed, 01/11/2012 - 11:36 | 2054508 StychoKiller
StychoKiller's picture

Who knows? Physicists tell us light does not escape once the event horizon of a black hole is crossed.

Tue, 01/10/2012 - 15:26 | 2051269 Sudden Debt
Sudden Debt's picture

http://www.youtube.com/watch?v=EG4uDXYwafw&sns=em

You just know you're going to be cut off if you don't stick to the script now do you? It get good around min. 2

Tue, 01/10/2012 - 15:43 | 2051368 financial apoca...
financial apocalyptic contagion's picture

holy shit sudden debt +100

Tue, 01/10/2012 - 15:57 | 2051445 GenXer
GenXer's picture

That's some Orwellian 'Ministry of Truth' shit right there.

Tue, 01/10/2012 - 16:01 | 2051459 iDealMeat
iDealMeat's picture

I logged in to +1 you..   just awesome..

 

Tue, 01/10/2012 - 17:08 | 2051689 BeansBulletsBandaids
BeansBulletsBandaids's picture

same here. incredible.

Tue, 01/10/2012 - 16:19 | 2051530 GoinFawr
GoinFawr's picture

Keep those 'public service announcements' coming SD.

Tue, 01/10/2012 - 17:04 | 2051667 Manthong
Manthong's picture

Wolf Shitzer and Crap News Network defecates on freedom of speech.. priceless.

Tue, 01/10/2012 - 17:35 | 2051787 karzai_luver
karzai_luver's picture

speech is money and money ain't free , well not exactly......yet.

You get the "best" speech and just us , by the way that money can buy.

 

 

Tue, 01/10/2012 - 19:02 | 2052084 CaptainObvious
CaptainObvious's picture

+1 I normally avoid youtube like a politician avoids the truth but I had to see this.

Tue, 01/10/2012 - 19:42 | 2052217 John_Coltrane
John_Coltrane's picture

That's exactly what people who value freedom and support RP are up against.

Tue, 01/10/2012 - 17:17 | 2051721 I Got Worms
I Got Worms's picture

Show some respect to the office. I think you meant, "Hi, President Soetero."

Tue, 01/10/2012 - 22:47 | 2052937 Buck Johnson
Buck Johnson's picture

300 billion and 1 year left, no way that will last.  And another debt increase, we already see inflation hitting the economy and what now.  We may see hyperstagflation happen in the US pretty soon.

Tue, 01/10/2012 - 15:23 | 2051256 taniquetil
taniquetil's picture

Didn't we just raise the borrowing limit by $1.2 trillion last year? Where is all this money going? Is it being burned to keep the White House warm?

Tue, 01/10/2012 - 15:29 | 2051289 Irish66
Irish66's picture

It was suppose to last until 2013, no?

Tue, 01/10/2012 - 15:32 | 2051306 Pladizow
Pladizow's picture

The more important question is where is it coming from!

This is the answer that could help awaken the sheeple!

Tue, 01/10/2012 - 15:37 | 2051335 Fidel Sarcastro
Fidel Sarcastro's picture

From Benocide Bermonkey

Tue, 01/10/2012 - 16:05 | 2051473 Whoa Dammit
Whoa Dammit's picture

If you really want to wake the sheeple, tell them the debt, before interest, is growing at about $300 per month per person. Then ask them what their family could have done with that money instead.

Tue, 01/10/2012 - 17:36 | 2051793 karzai_luver
karzai_luver's picture

no, that was a joke , any who looked at the run rate could see that was not in the ballpark.

 

Tue, 01/10/2012 - 15:30 | 2051295 Sudden Debt
Sudden Debt's picture

You know.... Stuff....
BUT DID YOU SEE THAT THE GOV MADE 75 billion THIS YEAR?

So if they would raise the debt hurdle with 5 trillion more, they might even double that income!

Tue, 01/10/2012 - 15:35 | 2051322 Conrad Murray
Conrad Murray's picture

Have you seen the First Cow? She probably eats $50 billion per month in KFC and Ding Dongs. Not to mention having to secure vials of blood for their secret parties.

Tue, 01/10/2012 - 15:39 | 2051347 j0nx
j0nx's picture

"Let dem bitches eat cake" - Michelle Obama with regard to the American people.

Tue, 01/10/2012 - 15:43 | 2051367 Conrad Murray
Conrad Murray's picture

And let's not be silly here. O'Dumbo wants this fight right before election time. Let those cake-eating-hoes-on-the-dole go a week or three without dey food SNAPs cards because of the nigger-hatin Republicans refusing to up the sugar-daddy limit.

Yalls be finna elect dat WHITE BOY who bees talksin bout takin yo reparation biscuits?

Tue, 01/10/2012 - 15:53 | 2051421 GOSPLAN HERO
GOSPLAN HERO's picture

Dead Dems be votin' like fo (4) mutha fuckas on election day.

Tue, 01/10/2012 - 15:57 | 2051444 GeneMarchbanks
GeneMarchbanks's picture

What you call the 'gimme dats' are the pervasive view point of what is left of the cesspool land area between hockey and gorditas. From the Dimons to the SNAPs collectors and all inbetween. Only an unbelievable shift in consciousness and philosophical outlook could help rejoin the US to rest of the globe. Maybe. Atonement cometh.

Tue, 01/10/2012 - 19:47 | 2052238 John_Coltrane
John_Coltrane's picture

During the Rodney King riots a reporter asked a rioter what they wanted.  The answer:

"access to the dollar".  Apparently the concept of work escapes them. 

Tue, 01/10/2012 - 15:36 | 2051330 Yen Cross
Yen Cross's picture

 To the Treasury > Fed.> ECB> ...

Tue, 01/10/2012 - 15:55 | 2051434 GoinFawr
GoinFawr's picture

...XAU? Just kidding. There's that 200 day MA thing again...damn you're good.

Tue, 01/10/2012 - 16:58 | 2051643 youngman
youngman's picture

Alice in Wonderland parties....dontca know...and Hawaii vacations...that Mrs Obama can eat....alot

Tue, 01/10/2012 - 17:13 | 2051708 blunderdog
blunderdog's picture

Where is all this money going?

SocSec, Medicare, the military.

Tue, 01/10/2012 - 15:26 | 2051258 GeneMarchbanks
GeneMarchbanks's picture

By some proxy perhaps, Dimon will help...

Tue, 01/10/2012 - 15:24 | 2051260 Tortfeasor
Tortfeasor's picture

He withdrew his previous request (end of December) so that he could argue that Congress wasn't in session, and thus he could make his "recess appointments".  If Congress had just passed the request, he couldn't have argued that Congress was in recess.

Stupid games to abdicate more power.

Tue, 01/10/2012 - 15:24 | 2051263 Gene Parmesan
Gene Parmesan's picture

So our question is: how will the US, which has a gross debt issuance rate of over $100 billion per month on average, last for a year with just $300 billion in dry powder?

Nobody will challenge the raising of the debt ceiling if we're at war.

Tue, 01/10/2012 - 15:28 | 2051281 GeneMarchbanks
GeneMarchbanks's picture

But we're no- ohhhhh.... I see what you did there. Clever.

Tue, 01/10/2012 - 16:09 | 2051494 hedgeless_horseman
hedgeless_horseman's picture

 

 

Oceania has always been at war with Central Asia.

 

Tue, 01/10/2012 - 15:30 | 2051298 blu
blu's picture

So ... war is just $300B away? Finally something to plan investment strategies around.

/s

Tue, 01/10/2012 - 15:55 | 2051440 Gene Parmesan
Gene Parmesan's picture

That would assume that we don't have this fight a half dozen more times over the next 11 months.

Tue, 01/10/2012 - 15:32 | 2051307 Sudden Debt
Sudden Debt's picture

They could just change the calendar system and lower the amount of month a year normally contains. From 12 to 3 in 1, 2, 3!!

Tue, 01/10/2012 - 17:05 | 2051673 tekhneek
tekhneek's picture

While we're at it can we get rid of daylight "savings" time...?

 

Tue, 01/10/2012 - 15:38 | 2051342 Backspin
Backspin's picture

The debt ceiling will be raised, and then it will be soon old news again, not a "currently pressing problem" during the campaign.

Tue, 01/10/2012 - 15:44 | 2051376 Gene Parmesan
Gene Parmesan's picture

You think the Rs are going to let them raise it high enough to get us past November? I don't.

Tue, 01/10/2012 - 16:14 | 2051509 Joe Davola
Joe Davola's picture

There are several counters that have already been used, I'm guessing O will threaten "can't send SS checks because the R's are mean" counter yet again.

Tue, 01/10/2012 - 15:46 | 2051386 MayerRothschild
MayerRothschild's picture

Wasn't the debt ceiling originally created to keep the U.S. out of war?

 

The inrony...

Tue, 01/10/2012 - 16:50 | 2051611 Urban Redneck
Urban Redneck's picture

To surpress the price of gold in dollar terms after the dollar went off the gold standard.

Fri, 01/13/2012 - 15:52 | 2062811 MayerRothschild
MayerRothschild's picture

To keep the U.S. out of the first World War...

It was established in 1917, specifically as a way to help fund the American participation in WWI through Liberty Bonds

Fri, 01/13/2012 - 18:31 | 2063460 Urban Redneck
Urban Redneck's picture

sometimes my reading is as bad as my typing

Wed, 01/11/2012 - 06:58 | 2053775 Element
Element's picture

+1 You can count on a Rothschild to know all there is to know about public debt and war.

Tue, 01/10/2012 - 15:27 | 2051276 PicassoInActions
PicassoInActions's picture

regardless of any1 wishes, it will be increased ( may be with some clowns and show). 

We don't have a choice at this point and are going all in. like it or not.

Tue, 01/10/2012 - 15:33 | 2051318 Sudden Debt
Sudden Debt's picture

Did you know there where 3 types of clowns?

Tue, 01/10/2012 - 16:00 | 2051455 PicassoInActions
PicassoInActions's picture

there may be even mroe types of clowns, we need them all.

All those clowns are part of the bigger circus ( world economy)

Simply put, clowns are fucking us and making more money than we are.

Tue, 01/10/2012 - 15:27 | 2051279 blu
blu's picture

This is now a  routine matter, like mowing the Whitehouse lawn.

We. Are. Screwed.

Tue, 01/10/2012 - 15:41 | 2051359 Backspin
Backspin's picture

Exponential growth, people.  It catches (almost) everyone by surprise at the knee of the curve.

Wed, 01/11/2012 - 11:43 | 2054548 StychoKiller
StychoKiller's picture

Them positive g's are gonna crush a lot of punkin' heads...

Tue, 01/10/2012 - 15:27 | 2051280 djsmps
djsmps's picture

Will he be 48 minutes late?

Tue, 01/10/2012 - 15:29 | 2051288 Jlmadyson
Jlmadyson's picture

Actually the $1.2T will take them to to final limit of $16.6 or so.

Since these topics cross I'm cross posting what I said earlier;

Yes but he had to formally ask for it and Congress has the option to shoot down. It is procedural but still the letter of the law. That is why they withdrew the request early this month for next week. That
means each and everyday since Thursday they have been over the limit without one peep from MSM. I mean who do these guys think they are kidding.

What a joke.

Regardless they went through 900 billion in 5 months. Guess what that means for the 1.2T which they are as we speak drawing against now? It means June/ July at the latest. Which means Timmy G will rob as long as he can. Early October at the very, very, very latest.

Debt bomb right before elections. Fun times ahead.

They ain't fooling nobody.

Going to squeeze that teet as hard as I can come Feb and refund time.

OT: But where in the world is S&P already? They shoulnd't be taking anywhere near this long. It's like payments from Euroland must be pouring in. Moody's should have zero choice in the matter come October on downgrade or not. No excuses anymore. We saw enough of that in 08 to last a lifetime.

Tue, 01/10/2012 - 15:32 | 2051308 fonzannoon
fonzannoon's picture

The real joke will the the flight to safety that will take place when that happens.

Tue, 01/10/2012 - 15:29 | 2051291 LaLiLuLeLo
LaLiLuLeLo's picture

"To infinity and BEYOND!"

Tue, 01/10/2012 - 15:30 | 2051296 Snakeeyes
Snakeeyes's picture

And wait until they get the bill for their loan modification schemes! Add ANOTHER trillion!

Ezra Klein’s on Story on Mortgage Modifications and The Parable of The Centrally-Planned Housing and Mortgage Markets

https://confoundedinterest.wordpress.com/2012/01/10/ezra-kleins-on-mortg...

Tue, 01/10/2012 - 15:31 | 2051299 dick cheneys ghost
dick cheneys ghost's picture

What would President Gingrich do?

Tue, 01/10/2012 - 15:32 | 2051313 sbenard
sbenard's picture

At that rate, we'll be running out of cash again just about the time that April 15th and tax day roll around. I don't think Americans are going to be in much of a mood for a bigger black hole!

Boehner buckled how many times last year? Fire Boehner and Obama! Bettter yet, just fire them all!

Tue, 01/10/2012 - 15:34 | 2051320 Dick Darlington
Dick Darlington's picture

But but but, according to Krugman, the faster it burns the more EVERYTHING will grow. And Krugman can't be wrong, he's a well respected PhD AND a Nobel Prize winning eCONomist.

Tue, 01/10/2012 - 15:35 | 2051321 Kaiser Sousa
Kaiser Sousa's picture

Well as is the custom....off to my Silver dealer...
Fucked is the country indeed.....

Tue, 01/10/2012 - 15:35 | 2051324 Dr. Engali
Dr. Engali's picture

Cut the friggen theatrics. The market will eventually determine the debt ceiling. Let these money grubbing power hungry banker loving politicians spend away. The sooner it burns to the ground the sooner we can rebuild it, hopefully with a few less of them. 

Tue, 01/10/2012 - 15:49 | 2051398 LaLiLuLeLo
LaLiLuLeLo's picture

Bingo! The more rope the better

Tue, 01/10/2012 - 17:23 | 2051751 blunderdog
blunderdog's picture

In order for the market to determine the debt-ceiling, you need genuine price discovery.  Our reserve system has been manipulating the yields for too long.  I suspect we can keep the yields low long enough to "wait out" the crash of Europe and China.

Interesting times.

Tue, 01/10/2012 - 17:35 | 2051791 Dr. Engali
Dr. Engali's picture

The market encompasses more than just the stock bond market. Price discovery will happen when the market for dollars are rejected.

Tue, 01/10/2012 - 18:07 | 2051907 blunderdog
blunderdog's picture

It's hard to see anyone "rejecting" dollars.  There are no other currency-pools big enough for the big institutional guys.

You can't put a trillion dollars into the Swiss Franc, yanno.

Tue, 01/10/2012 - 17:40 | 2051808 karzai_luver
karzai_luver's picture

Yep, classic "do u fe yucky punk?

 

Tue, 01/10/2012 - 15:39 | 2051345 Clifhanger
Clifhanger's picture

Herman Cain may have his 9-9-9 plan (and by the way, I was a Cain supporter), but OBAMA has his 6-6-6 plan! 

Tue, 01/10/2012 - 15:53 | 2051426 LaLiLuLeLo
LaLiLuLeLo's picture

Cain was a hired sideshow

Tue, 01/10/2012 - 17:41 | 2051812 karzai_luver
karzai_luver's picture

Cain was running for a spot on FOX .....as are many of them.

 

Tue, 01/10/2012 - 15:39 | 2051350 SeverinSlade
SeverinSlade's picture

Another downgrade of US debt by S&P coming in a month or two?  Remember, they downgraded us originally because of our "inability to govern."  What happens when Congress has to raise the debt ceiling again in two months when that final $300 billion is spent ($180 billion/month cash burn rate)?

Tue, 01/10/2012 - 15:39 | 2051352 earleflorida
earleflorida's picture

time to dust-off the old print-plates of "wilson's 100K greenback" and get digitizing , or whatever

millionaires > billionaires > trillionaires, and beyond the Zimbabwe Grasslands    

Tue, 01/10/2012 - 15:42 | 2051361 j0nx
j0nx's picture

"La la la la I can't hear you, the playoffs are on" - The American people with regard to anyone speaking the truth about our current economic predicament.

Tue, 01/10/2012 - 15:44 | 2051372 dust to dust
dust to dust's picture

 More fuel for Dr. Paul's mandate.  Take it to them Ron. Let the truth be heard.

Tue, 01/10/2012 - 15:44 | 2051373 non_anon
non_anon's picture

yawn, a forgone conclusion

Tue, 01/10/2012 - 15:44 | 2051374 Pancho Villa
Pancho Villa's picture

I thought this was all settled. Wasn't the supercommittee supposed to come up with a bunch of cuts? Haven't heard much about that recently.

I expect that Congress will come up with one more extension to get them past the elections.

Tue, 01/10/2012 - 15:44 | 2051375 Jlmadyson
Jlmadyson's picture

People really need to wake up. There really is no stopping this fantasy land trainwreck ala Krugman and friends. This will ruin us.

Tue, 01/10/2012 - 15:48 | 2051396 therearetoomany...
therearetoomanyidiots's picture

Confound the media and the government - vote Ron Paul!

Tue, 01/10/2012 - 15:53 | 2051397 homer8043
homer8043's picture

The total is $2.1T, $1.2T in addition. The $2.1T number was chosen to punt until after Inauguration 2013 based on CBO numbers.

That being said, the real number to look at is $900B drawn down from mid-May 2011 to now. It may be a little more. Call it $120B per month. This is probably the right number with the payroll tax likely to be extended. My conspiracy theory is the stupid two month extension was negotiated to see how the debt ceiling plays out early in the year.

Continuing, at $120B per month, gives 10 months, we hit the ceiling in November. Timmy G uses accounting gimmicks to survive until January. If a recession happens early in 2012, a good probability and not really recognized, we have huge issues.

Tue, 01/10/2012 - 16:03 | 2051465 Jlmadyson
Jlmadyson's picture

No it was not from mid May it was from August which at that time they were at 14.3T. The limit at that time. They raised it by 2.1T in basically two sessions. They are at as of Thursday 15.2T. They have gone through basically nearly a trillion dollars in 5 months. Even if you used 900B that is a 180B a month. They will never make it. Not even close. Timmy will plunge those funds but those tricks ain't going to last three months.

Downgrade

Tue, 01/10/2012 - 16:18 | 2051511 homer8043
homer8043's picture

We first hit the debt ceiling mid May when Timmy started his accounting gimmicks to keep the US from legal default. Timmy has resumed accounting tricks since we have hit it again. Apples to apples is mid May plus or minus. The first $400B that hit in August was the unwind of the accounting gimmick.

The second $500B being used in four months follows the about $120B per month rate. It is why the bill was structured as it was. $400B to accommodate the unwind. $500B to get through the designed to fail Super Committee. $1.2T to get to the new administration and Congress. Well punted and everyone happy unless revenues fall flat and it doesn't make it.

Tue, 01/10/2012 - 16:29 | 2051561 Jlmadyson
Jlmadyson's picture

Ah yes the lag. The same thing they are technically having to do right now. Was it since May? Thought it was July? How in the world did they get away with that for that long? Regardless I still say they run out before elections and I guess it is possible Timmy is able to push it over. Whether or not Repubs allow so close to election we shall see.

Tue, 01/10/2012 - 16:32 | 2051571 homer8043
homer8043's picture

July is when the media went nuts because Congress did nothing for eight weeks. As usual.

Tue, 01/10/2012 - 15:50 | 2051404 Au Shucks
Au Shucks's picture

Seems to all fit nicely into the Road to Roota theory.  I have to say, R2R is among the few most likely theories to be correct when it comes to the rational, or rather the seemingly completely irrational logic, of US and even global fiscal policy. 

Tue, 01/10/2012 - 15:52 | 2051416 libertus
libertus's picture

Why doesn't our dear leader the Tyrant King Obama just declare it--like he does everything else?

Tue, 01/10/2012 - 15:52 | 2051418 Instant Wealth
Instant Wealth's picture

... meanwhile in Germany

 

Finanzminister Schäuble about to loosen (constitutional) "debt brakes"

http://www.spiegel.de/wirtschaft/soziales/0,1518,808115,00.html

 

Tue, 01/10/2012 - 15:54 | 2051432 lieutenantjohnchard
lieutenantjohnchard's picture

i wouldn't expect too much to come from omb in the coming months if heather higginbottom is promoted to omb director as jack lew takes over for daley as chief of staff. i saw an interview of dear heather in a senatorial budget meeting with jeff sessions doing the questioning. the woman was clueless, and such a lightweight she made a feather seem like a heavy duty paper weight. if she's promoted to director of omb she may turn out to be the worst appointment in the history of the united states. she would be in way over her head.

Tue, 01/10/2012 - 16:02 | 2051463 SixFeetFromTheHedge
SixFeetFromTheHedge's picture

Let's do some short analysis here: 1. Debt ceiling can be raised by $300 billion. 2. Treasury can plunder another $300 billion in pensions etc. 3. In April the government will collect Tax (how much exactly they might collect I don't know). 

However a total of $600 billion will last until July. So if from April until November they can collect another $500 billion in Tax receipts then Obama should be fine.

Ofcourse the other option would be just to simply harass and abuse Iran to try to start a war and ofcourse nobody will dare to block a debt ceiling when USA is in a war. 

I guess those are the two options?

Tue, 01/10/2012 - 16:05 | 2051472 Seasmoke
Seasmoke's picture

i am sure geithner will have no problem "borrowing" as much as is needed from the pensions again

Tue, 01/10/2012 - 16:05 | 2051474 Fix It Again Timmy
Fix It Again Timmy's picture

We print money because we can - America's economic policy since 1913...

Tue, 01/10/2012 - 16:07 | 2051485 Quinvarius
Quinvarius's picture

Will they just lie and print into the home stretch?  Probably.

Tue, 01/10/2012 - 16:12 | 2051504 hedgeless_horseman
hedgeless_horseman's picture

 

 

They'll go to the whip.  Bet on it.

Tue, 01/10/2012 - 16:08 | 2051488 AldoHux_IV
AldoHux_IV's picture

I wonder how much of the retirement fund got pillaged as these last minute deals to raise the debt ceiling continued on their farcical back and forth.  Of course if it meant a bailout or war upon citizens domestic or foreign then the deal would have been signed sealed and delivered before the debate was to ever take place.

All this debt issuance of late wreaks of behind the scenes shenanigans by the central planners.

Tue, 01/10/2012 - 16:12 | 2051505 monopoly
monopoly's picture

Until the sheeples stop watching American Idol, the Bachelor, The Amazing race and Desperate Housewives. So what. They just do not care or understand it.

We are so screwed.

Tue, 01/10/2012 - 16:12 | 2051506 samsara
samsara's picture

They only have to make it till March,  After that,  Greece Defaults,  The 50 pound guy falls off the mountain pulling the 150 pound Port/Spain guys,  They then inturn pull off the 500 pound Germany/France then the 1000 pound US guy gets pulled off....

Then.... ATMs not working....  Then......

I'm calling 3/6/12 as Dday

 

Tue, 01/10/2012 - 16:16 | 2051519 Ned Zeppelin
Ned Zeppelin's picture

They will print that day, so you'll get your money, even as you are suddenly all too aware that it no longer can buy you very much other than government cheese and rations of gasoline, and immediately institute martial law "until further notice."  Gold will be confiscated.

Tue, 01/10/2012 - 16:12 | 2051507 yogibear
yogibear's picture

Obama move the debt ceiling to 30 trillion. Then you and Michelle can go on a shopping spree, Get you home town Illinois and chicago out of debt by transferring it to the rest of the states. Have Bernanke and the Fed just keep monetizing debt to infinity. Bernanke loves to print.

Tue, 01/10/2012 - 16:13 | 2051512 Ned Zeppelin
Ned Zeppelin's picture

Doing the math you'd think we'd hit the $15.5T by noon next Thursday.

Tue, 01/10/2012 - 16:14 | 2051513 quacker
quacker's picture

I don't know .. right now the biggest decoupling in my life is my bookmarks. I have ZH bookmarked .. and if I have to come up with one sentence to characterize ZH it would be "Full explanation of the edifice and why it's about to crumble."

But then I laso have msm outlets bookmarked to check out the news of the day. There I see nothing but markets rising off "econimic optimism."

Someone is wrong.

Tue, 01/10/2012 - 16:22 | 2051545 Jlmadyson
Jlmadyson's picture

A lot of folks were wrong about Lehman, Fannie, Freddie, AIG, GMC, MF Global, Bear Sterns et al.

I wonder who will be wrong about Greece, Italy, Spain, US?

I don't want to find out.

Tue, 01/10/2012 - 16:18 | 2051526 swani
swani's picture

What a surprise!

 

Alex

Tue, 01/10/2012 - 16:27 | 2051559 pods
pods's picture

Now these are some people who can spend money!

Fucking laughable now.  Why not just start writing more zeroes on bills?

A trillion dollars in excess of what you take in in taxes lasts HALF A YEAR!?!?

Only solution is going to be Iran.  And not in a good way.

pods

Tue, 01/10/2012 - 16:52 | 2051622 franzpick
franzpick's picture

I still say the best chart of the last 10 years may be the Natl Debt/Gold plot that TD put up last July 21st, after which congress raised the debt limit and gold proceeded immediately from $1600 to $1900:

http://www.zerohedge.com/article/gold-rise-143-trillion-us-debt-limit-increase-%E2%80%93-bloomberg-chart-day

Maybe we'll soon be seeing a rinse-repeat gold performance up toward $2000 or higher as the necessity of new and further near-term debt ceiling increases comes into clearer focus thanks to ZH, and no thanks to the authorities and the media whose repeated spreading of clouds of confusion and disinformation continues to obscure any realistic view of the impossibility of crossing the valley of the 90 year credit and debt collapse.

Tue, 01/10/2012 - 17:22 | 2051746 youngman
youngman's picture

I can´t believe its not going way up right now....your are either printing the USA..the ECB..Japan.....or in hyperinflation...Iran and Argentina...and we are just 1% of interest costs raising to go into total default...just think if our bonds jumped 1% in a week....what the talk would be....

Tue, 01/10/2012 - 17:02 | 2051655 The Disappointed
The Disappointed's picture

Will someone tell me why counterfieting is illegal.

The B-52s had it right 30 years ago.

http://www.youtube.com/watch?v=7oPuVAdGkk8

Except where they sing 'Ten, twenty, thirty million dollars, ready to be spent'. Today, it would have to be billions or trillions. But worth watching to the end as they are, one at a time, hit with streams of colored notes.

Tue, 01/10/2012 - 17:26 | 2051759 lolmao500
lolmao500's picture

Obama doesn't need to ask nothing. Congress gave that power to Obama in August. Obama can raise the debt ceiling by executive order till 16.694 trillion... UNLESS congress passes a resolution blocking Obama with a 2/3 vote.

Tue, 01/10/2012 - 17:31 | 2051767 Cult of Criminality
Cult of Criminality's picture

How about somebody gets the balls to not just say no but

FUCK NO ASSHOLE NO MORE MONEY FUCK YOU....How about that !

AND IF YOU DO NOT GET IT YOU WILL STEAL IT WON`T YOU.

OF COURSE YOU WILL ASSHOLE AND THE REST OF YOUR MERRY ASSHOLE FRIENDS ON THE PEOPLES DIME.

AS A CRIMINAL CULT YOU GUY`S ARE SIMPLY THE BEST AND TO WALK AROUND WITH YOUR HEAD HIGH AND MIGHTY ....FUCK YOU.

NO MORE MONEY FUCK YOU

ARE WE CLEAR ?

CRIMINAL KILLER ASSHOLES I CANNOT WAIT FOR YOU TO GET YOURS AND IT WILL COME.

 

Tue, 01/10/2012 - 17:36 | 2051795 s2man
s2man's picture

"Not even an hour after we asked the question". That was my first thought when I read the headline.

Tue, 01/10/2012 - 18:07 | 2051909 John Law Lives
John Law Lives's picture

It is time for S&P to come out with the double whammy:

Downgrade France and downgrade the USA another notch.

Tue, 01/10/2012 - 19:08 | 2052099 lolmao500
lolmao500's picture

And downgrade Germany for being such dumbasses in bailing out all of Europe.

Tue, 01/10/2012 - 18:12 | 2051929 Heroic Couplet
Heroic Couplet's picture

If Al Gore had been elected: probably not Iraq invasion, because Gore most likely doesn't give a crap about Poppy Bush, and the Bush tax cuts wouldn't have happened. Repealing the Bush tax cuts reduces the deficit by one-third, and zero jobs have been created as a result of the tax cuts. So stop complaining about the Republican debt this country has. It's a tough way for unemployed Republicans to learn they voted against their own interest.

Tue, 01/10/2012 - 22:02 | 2052751 VisualCSharp
VisualCSharp's picture

Red team, blue team.

Your team, my team.

Our team, their team.

The winners, the losers.

The rich, the poor.

THEY ARE ALL FALSE DICHOTOMIES. GET YOUR HEAD OUT OF YOUR ASS AND THINK BEYOND.

Tue, 01/10/2012 - 18:25 | 2051977 Malpheseus
Malpheseus's picture

"...days, not weeks..."

I swear, it's like he's feeding lines to No Agenda.

Tue, 01/10/2012 - 18:59 | 2052075 xela2200
xela2200's picture

So how much debt is FED going to monetize this time?

Tue, 01/10/2012 - 19:53 | 2052268 Chupacabra-322
Chupacabra-322's picture

Federal Reserves Charter expires December 21, 2012. 

Any bets on if we'll make it that far?  By then, they would of stolen everythig that's not nailed to the ground.  It's what they're in the process of.  And we're letting them. 

Wed, 01/11/2012 - 23:00 | 2057170 honestann
honestann's picture

Is that really true?

I knew the predators-that-be and predator-class were planning to take advantage of the MayanCalendar silliness to provide cover for speeding their outrageous steps to overtly enslave mankind... but I had no idea that it EXACTLY corresponded with the date the MayanCalendarLegend claims "the world ends".

What?  Is "the world" the "predator bankster system"?

Are you REALLY saying congress needs to vote before 2012 December 21 to continue the domination of the predators-that-be and main constituents of the predator-class?

??? REALLY ???

Please show us where that is stated.

Tue, 01/10/2012 - 19:57 | 2052289 Bansters-in-my-...
Bansters-in-my- feces's picture

The monkey is a Debt Junkie.

Wed, 01/11/2012 - 00:27 | 2053357 toomanyfakecons...
toomanyfakeconservatives's picture

Really? After having to suffer through watching that insufferable shit show last year?

Wed, 01/11/2012 - 05:03 | 2053706 Darkness
Darkness's picture

How are is too far? 

Wed, 01/11/2012 - 07:31 | 2053778 Element
Element's picture

I've a feeling this is going to be a very interesting electoral year, can't wait to see Barry try to explain this one away as it all comes to nought ... how can you spin this?

" ...The War with Iran has added to the emergency deficit schedule ... blah blah ... the collapse of Barclays and most of the global insurance industry has also greatly added to transient spending needs in time of great international tumult ... "

 

(yeah, that's right bitchez, you just try finding a sentence that you can successfully use 'tumult' in ... good luck)

Wed, 01/11/2012 - 22:48 | 2057141 honestann
honestann's picture

The predators-that-be do NOT worry about the debt being a presidential campaign issue.  Both Romney and Obama want unlimited spending, unlimited borrowing, and unlimited printing by the federal reserve, and everyone in government knows this regardless of what Romney might imply.

The predators-that-be DO worry about the endlessly-rising federal debt becoming a republican presidential nomination issue, because that MASSIVELY favors #2 RonPaul against #1 Mitt Romney.  And RonPaul is the ONLY barrier at this point that can stop the predators-that-be and predator-class from completely enslaving planet earth (outside of open armed revolution in the very near future).

RonPaul is within striking distance of nomination, but what would be required to get him the nomination is a collapse in the dollar, a collapse in the economy, or a disasterous start of a war against Iran.  The predators-that-be know this, and will try everything they can to postpone these disasters until Romney locks up the nomination.  Once that's done, THEY DON'T CARE WHAT HAPPENS.

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