Obama Sends Request To Congress For $1.2 Trillion Debt Ceiling Increase

Tyler Durden's picture

Update:

  • HOUSE TO VOTE JAN. 18 ON OBAMA'S DEBT-LIMIT INCREASE REQUEST

Two days ago we wondered how long it would take for Obama to restart the debt ceiling theater. Not that long it turns out.

  • OBAMA SENDS CONGRESS REQUEST TO RAISE DEBT CEILING
  • OBAMA NOTIFICATION STARTS 15-DAY CLOCK FOR CONGRESS TO VOTE

So with Congress in recess, will Obama succeed in passing another automatic vote using base trickery? The same Obama, who as recently as 3 hours ago warned Congress that any attempts to pass approval on the Keystone Pipeline without his involvement are "counterproductive"... In other news, America' new debt ceiling of $16.3 trillion, or 107% of GDP is now just a formality, about to be interrupted by a little circus clowning.

From Bloomberg:

President Barack Obama formally notified Congress today that that the government needs more borrowing authority.

 

The written certification to raise the debt ceiling to $16.394 trillion starts a 15-day clock for Congress to consider and vote on a joint resolution disapproving of the increase.

 

Under legislation passed Aug. 2 after months of wrangling between the
administration and Republican lawmakers, the president is given the
power to veto any disapproval resolution that clears both chambers of
Congress.

 

The law calls for Obama to notify Congress when the debt came within $100 billion of the current $15.194 trillion limit.

 

While the threshold was reached Dec. 30, when the president was in
Hawaii and Congress was on holiday break, Obama agreed to a request from
congressional leaders to delay the notification request, ensuring the
deadline for congressional action didn’t lapse before lawmakers returned
to Washington.

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Everybodys All American's picture

The US has added 6 trillion more debt in less than 3 yrs ...

What exactly did we buy?

drink or die's picture

According to every mainstream news outlet, the booming recovery we are in.

Everybodys All American's picture

Tell that to the 48 million US citizens now on food stamps.

Bubbles_2.0's picture

Like clockwork.

Shorts delta getting waterboarded 

 

Kaiser Sousa's picture

This announcement obvious explains why the equities recovered all losses today at the same hours they have for the last 2 years and why Gold & Silver gave back most of their early gains n the same manner.... Fuckin bullshit......

VyseLegendaire's picture

Who even pays attention to the House of Soeotoro anymore?

Professordoomfinger's picture

$1.2T?  I could only buy 14% of all the gold in the world with that.

mr1963's picture

It would be nice if there was a "budget" to see where the f the money is going. It's been hidden from us for three long years. I know we all know, but we want it in print.

The f is going to win again, the population is past the tipping point and there's no return

Hide whatever you got prior to the election, after it'll be too late.

 

non_anon's picture

there is no "ceiling", it's a sham

LongSoupLine's picture

 

 

 

Silver.  period.

JR's picture

Obama sent the request to Congress for the debt ceiling increase? Or was it the Federal Reserve operatives such as Jacob Lew in the United States government.

You don’t know Jack, unless you’re Fox News.  When Jacob Lew was appointed as White House Chief of Staff to replace William Daley, Fox repeated all day long that Obama’s new appointment was Jack Lew. Why?

Just as the media was silent for two years on the Obamas’ lavish Alice in Wonderland Hollywood Halloween party in the State Dining Room, the neocon (Jewish)-controlled Fox News is apparently trying to be silent on the Jewishness of Jacob Lew and, in general, the Jewishness of the Obama Administration, the Federal Reserve System and the U.S. Treasury, and the Israeli lobby, AIPAC, and its control over the U.S. Congress and foreign policy.

Of course, it is too much to ask of the neocons to connect Jacob Lew with the huge bailout windfalls connected to Citigroup, or that he is a delivery man for the owners of the Federal Reserve.

Glenn Greenwald had the facts Tuesday on Salon,com: here are excerpts

“In 2010, Lew became head of the Office of Management and Budget when Peter Orszag left and then, a couple months later, accepted a multi-million dollar position as a high-level Citigroup official. Lew has spent many years in various government positions, but he has his own substantial ties to Citigroup. Here is what Lew was doing in 2008 at the time the financial crisis exploded, as detailed by an excellent Huffington Post report from last year: [Lew] oversaw a Citigroup unit that profited off the housing collapse and financial crisis by investing in a hedge fund king who correctly predicted the eventual subprime meltdown and now finds himself involved in the center of the U.S. government’s fraud case against Goldman Sachs.  . . .

“Lew (like so many key Obama officials) also participated in the orgy of Wall Street de-regulation that took place in the 1990s when he served as Clinton’s OMB head; after leaving Citigroup to join the Obama administration, he unsurprisingly said in response to questioning from Sen. Bernie Sanders that he does not believe deregulation contributed to the financial crisis.”

http://www.salon.com/2012/01/10/the_new_wh_chief_of_staff_and_citigroup/singleton/

Strelok's picture

Why not ask for a $3 trillion increase?  That way it'll be twice as long until the next request!

LongSoupLine's picture

well, on the surface, that statement makes sense.  However, debt increases (and associated interest payments) are a time compressing exponential error.  Hence, $3T increase would make the next request in only 1/8th time increase over current time lag.

i.e. - When you flush a toilet, the water moves faster at the cortex.

AC_Doctor's picture

More US Debt downgrades will be coming around the corner.  Obama doesn't want a strong US Dollar...

silverserfer's picture

If you know that the Feds fiat system is a ponzi then you know htat the debt system will be raised on a nearlt exponential curve. Roll with it, prepare for it and quit bitching about it. Obama diddnt come up with it. I dont think he was ever at Jeckyll island back in 1911 when thay came up with this shit. His  Grandpa was still out hunting bush meat with a spear. The debt celing can be 1 quad and it doens mean much if the fed is still the one buying the bonds. Whats ron Paul going to do, pull a JFK and craash the economy into a deflationary death spiral while we all covert to silver and gold backed money? 

Inflation is opprotunity for us small fish to prepare. It not like we have a choice in the matter. Besides 1.2 trill is dished out to the banks thru shadow banking like a hand of cards being dealt every month. Stop whinning! (arnold voice) 

BLOTTO's picture

They dont need our money - the machine can make/print that off as much as they want.

They need our energy - we are 9 volt batteries

Dum dum daaa...Duracell

 

GrinandBearit's picture

This has gotten so absurdly ridiculous.  $1.2 trillion is now chump change.  Why doesn't Obama request simply $1 quadrillion dollars? 

theprofromdover's picture

Everyone and his hound dawg could see the last raise would only get them 150 days down the road.

So presumably someone (Timbo?) should fall on their sword.

Now maybe Timbo feels he was the only smart guy in the room, cos he managed to slip the pension cash out under the table,  but Tiny Tim, it wasn't big and it wasn't clever. Time to pack your little briefcase my boy.

John Law Lives's picture

Gee, I wonder if the requested debt ceiling increase will be approved.  The drama is killing me...

Seasmoke's picture

Boner will never allow this to pass .............. (/sarc)

Seasmoke's picture

i can see the sky......there is NO ceiling

Snakeeyes's picture

So, he wants ANOTHER $1.2 trillion on top of the $4 trillion  he has already borrowed.

The results? Nothing!

http://confoundedinterest.wordpress.com/2012/01/12/federal-deficit-at-86...

Shocker's picture

Why don't we just Raise the limit say $75 Trillion, give ourselves some breathing room.

MFL8240's picture

No words to describe my disdain for this group in DC.  Anyone is better than what we have and the problem is fixable if we go back on the Gold Standard and get rid of the Jewish Banking cartel.  They have ruined yet another country as they did Germany and I don't give a shit if it is politially correct or not, these bastards need to pay for what they have done. 

StychoKiller's picture

"See the Clowns perform their amazing tricks!

That's clowntastic!  Pretty umazing!  It's a clowntrastrophe!"

 

From one of my favorite Pinball Machines: The Hurricane

jack stephan's picture

http://youtu.be/NnuYhFRYbAw

Lets hear it for the boy.

This shitty scooby dum episode of the "mystery of the lost american century" goes to the piece of cardboard in chief. 

MEDDELING AMERICANS!!!!!!!!

Bansters-in-my- feces's picture

And the Rothschilds around the world smile broadly :0)
Ps...Fuck you Timmy G

LookingWithAmazement's picture

Panic! Debt ceiling breach! Government shutdown! US bonds being dumped! Total collapse!

Oh wait. Not so fast. At first a lot of pump and circumstance. Make it a political plaything. Election year after all. And then both Reps and Dems agree on some vague terms. "Austerity" - but not now of course. And then the ceiling gently raised until ... indeed, after the elections. Yaaawn. Politics is the entertainment side of industry (Frank Zappa). Boring world we live in.

overmedicatedundersexed's picture

why do I see Dr Strangelove aah Ben telling Timmy it's time for WW3-as a prior VP said: "debt does not matter.".what was not heard was the end statement: "when your dead." these sociopathic monsters are willing to kill billions before they give up power. living on the edge in these strange days too much reality-think I'll go watch "On the Beach".

overmedicatedundersexed's picture

nme- war is hell, people still don't get it do they? the dead could care less about piss or shit..some never grow up some never will.

we worry too much about devaluing of fiat..but little is said about devalue of human life across the globe. if you think abortion is ok you open a very dark door and hell is just across the threshold. but the ave poster here can be ok with mass slaughter of human children while deploring piss on dead men..they cannot connect the dots. they will not look in a mirror..

truth is truth no matter how much it goes against your world view.

CitizenPete's picture

 

Same Old Shit, Fiat Freak Show

What else would they do?  There is going to be alot more bla bla bark bark woof woof opium sales to finance and direct efforts against China.  Pacific efforts begin now.  

 

The Fed Reserve Note is dead!  Long live the FRN!

Money 4 Nothing's picture

Why don't they just make it a cool 6 Trillion? That can hold him out till 2016 and he won't have to ask for another raise on the ceiling after 2012 re-election.

Hell, make it 10 Trillion, it's all confetti anyway.

Jus sayin'.

Element's picture

Just wondering ... did any one cover this on the MSM?