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.

0
Your rating: None
 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
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.

Do NOT follow this link or you will be banned from the site!