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Senate Attempt To Block Debt Ceiling Increase Fails: Debt Target Is Now $15.2 Trillion, Or Over 100% Of GDP

Tyler Durden's picture




 

Earlier today we observed that absent immediate action by the House and Senate to enact the critical $500 billion debt ceiling expansion, the US would run out of Keynesian dry powder as soon as Monday. There is no longer a need to worry. According to the Hill, an attempt to sabotage the bankruptcy of America has failed after a Senate resolution to disapprove the $500 billion debt ceiling increase proposed by Mitch McConnell was voted down 45 to 52. As a reminder, "Under the debt-ceiling agreement reached in early August, the Obama administration was authorized to immediately raise the debt ceiling by $400 billion. Another $500 billion increase was authorized this month, although that could have been blocked if both the House and Senate approved resolutions expressing disapproval." The opportunity cost of passing the bill would have been an additional 10 hours of work tomorrow for the Senatorial millionaires for whom insider trading is legal: "Earlier in the day Senate Majority Leader Harry Reid (D-Nev.) threatened to hold the Senate open for up to ten hours on Friday to "dispose" of the resolution if it moved forward." As a result of this vote, a parallel bill in Congress is now moot even though it has not been voted on. This effectively greenlights the increase of the US debt ceiling from the current $14.694 to $15.194 trillion, or roughly 101% of GDP.

Some more:

On Thursday morning McConnell suggested senators could use the vote as a way to respond to President Obama's "jobs" speech to a joint session of Congress in which he presented a proposal that he said would stimulate the  American economy.

 

"After the president's speech tonight calling for more stimulus spending, the Senate will vote on his request for an additional $500 billion increase in the debt ceiling," McConnell said. "So senators will have an opportunity to vote for or against this type of approach right away."

 

A House Republican resolution has also been introduced, H.J.Res. 77, that has the potential to pass if most Republicans decide to support it. Still, House passage would not be enough to stop the $500 billion increase in the debt ceiling since the Senate stopped it.

 

The House resolution, from Rep. Tom Reed (R-NY), has 49 cosponsors, all Republicans.

 

The House and Senate resolutions are identical, and read:

 

"Resolved by the Senate and House of Representatives of the United States of America in Congress assembled, That Congress disapproves of the President's exercise of authority to increase the debt limit, as exercised pursuant to the certification under section 3101A(a) of title 31, United States Code."

 

The Senate adjourned at 8.31 p.m. and is set to return on Friday at 9:45 a.m.

Congratulations America: you just bought yourself 3 more months.

 

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Fri, 09/09/2011 - 02:22 | 1649711 props2009
props2009's picture

Dollar: The King comes to take his Kingdom

http://capital3x.com/?p=935

Fri, 09/09/2011 - 04:29 | 1649779 jomama
jomama's picture

nothing baffles me more than people clamoring over the shiniest piece of shit in the punch bowl.

Fri, 09/09/2011 - 02:36 | 1649718 Lady Heather...UNCLE
Lady Heather...UNCLE's picture

Go the ALL BLACKS!!!!!!!!!!!!!!!!!!!

Fri, 09/09/2011 - 04:41 | 1649789 falak pema
falak pema's picture

do you think they can do it on home soil?

Fri, 09/09/2011 - 02:44 | 1649727 MalthusWasRight
MalthusWasRight's picture

"The world needs ditch diggers too."

- Judge Smails

 

Let's cut off the handouts and end the minimum wage.  Let's start a true meritocracy:  Win.  --->  Succeed.  Lose:  If of means: --->  Play again at expense.  Else: --->  Dig ditches for one year.  Play again.

 

 

Fri, 09/09/2011 - 04:36 | 1649786 iNull
iNull's picture

Malthus was right, BTW.

Fri, 09/09/2011 - 05:03 | 1649802 Bicycle Repairman
Bicycle Repairman's picture

Yes, if we kill a couple billion, that should balance the budget right out.

Fri, 09/09/2011 - 12:39 | 1651313 bid the soldier...
bid the soldiers shoot's picture

Or we can let them kill each other.

The Western Militias vs the City Gangs.

The actuarialists will tell us whether we have to augment their total, how
much crude oil will be saved per annum for the common good, and how much farther that saved oil will get us to eternity and beyond.

Fri, 09/09/2011 - 05:06 | 1649803 Bicycle Repairman
Bicycle Repairman's picture

Yes.  A true meritocracy.  What to use as standard?  I'd like to propose the ability to dunk a basketball and big lips and asses as examples of real merit.

Fri, 09/09/2011 - 06:26 | 1649867 Iriestx
Iriestx's picture

If you're on here posting at 2:44am, you might not be as bright as you hope.

Fri, 09/09/2011 - 03:05 | 1649744 luigi
luigi's picture

"


"Debt Target Is Now $15.2 Trillion, Or Over 100% Of GDP"

 

Welcome to Italy! If you need some advice, don't hesitate to ask...

Fri, 09/09/2011 - 04:44 | 1649790 dognamedabu
dognamedabu's picture

This doesn't count the debt on Frannie and Freedies books. Or SS. People debt will be the death of the nation.

Fri, 09/09/2011 - 05:02 | 1649801 Bicycle Repairman
Bicycle Repairman's picture

There will be hell to pay tomorrow when the tea party wakes up.  You just wait.

Fri, 09/09/2011 - 06:39 | 1649878 Iriestx
Iriestx's picture

What exactly are they going to do?  Put on costumes, drag their ghastly pale, morbidly obese, geriatric asses out to Capitol Hill and scream about the 'Kenyan nigra mulin sleeper cell?'  Until somebody finds a way to herd the cats and get every last 'member' to focus on a couple of issues like a white hot lazer, rather than their own personal pet pieves and delusional fantasies, or gets them to start shooting people, the Tea Party is a non-event.

 

When every neo-con running for President can call themselves a card carrying Tea Party member, you know your group has no focus or agenda.

Sat, 09/10/2011 - 07:51 | 1654094 Bicycle Repairman
Bicycle Repairman's picture

Exactly.

Fri, 09/09/2011 - 05:55 | 1649830 louisianagold
louisianagold's picture

No one wants to block shit.  It's just a game.

Fri, 09/09/2011 - 06:23 | 1649862 Sathington Willougby
Sathington Willougby's picture

No point in doing it now.  The hard damage to the economy from misallocation is in and the blowback is unavoidable.  Throwing cash at a fake economy is like a kid eating one more piece of candy before bed on halloween night, she's gonna puke and you know it.

 

Neither a borrower nor a lender Bee - A Goldbug!

Fri, 09/09/2011 - 05:55 | 1649831 louisianagold
louisianagold's picture

duplicate

Fri, 09/09/2011 - 06:36 | 1649892 saulysw
saulysw's picture

I didn't think there was any doubt the ceiling would be raised this time. It's a done deal. Done on the quiet.

If the next 500B only lasts a month, then they are in some serious shit. I think it will probably go to the end of the year. It will still be some serious shit, but it'll probably get raised one mroe time. THEN 2-3 months later it will be on for young and old. 

The black swan here is the idea of passsing into law a no-debt-ceiling ammendment. I'm sure they would love the blank cheque, but as it has been said around here recently "there be dragons".

Fri, 09/09/2011 - 06:38 | 1649895 saulysw
saulysw's picture

ps. Gold flash crash in progress...

Fri, 09/09/2011 - 09:32 | 1650351 Zymurguy
Zymurguy's picture

Let's just get it over with already... raise the debt limit by $20 Trillion... no, might as well make it $100 Trillion... give Obama the extra $500 Billion he asked for last night and throw on a cool $20 Trillion on top of that just so he's got some extra spending money.

They are trying to bankrupt the country and crash us into chaos.  Let's do it and get it on bitchez!

Fri, 09/09/2011 - 10:05 | 1650492 papaswamp
papaswamp's picture

Just give every American $1 Million ...might as well at this point.

Or what would probably be cheaper. Excuse all personal debt....just wipe it clear. the Economy would go nuts as everyone jacked up their credit cards again.

Fri, 09/09/2011 - 16:39 | 1652428 fiddy pence haf...
fiddy pence haff pound's picture

i used to enjoy watching the winning side in the US vs brown people game, live on CNN.

"gladiator" and snuff, all in one.

BUTT, now the white team keeps getting its ass kicked.

cut to--> coffins with flag.

 

Now the best stuff is the constant drama on the Hill. The world's first "reality" show.

"I'm a millionnaire, get me outta here"

 

Sat, 09/10/2011 - 02:23 | 1653841 pappyhlace
pappyhlace's picture

at what point will americans lose it and start rioting the streets?

my guess is when we lose reserve currency, dollar plummets, hyperinflation hits, unemployment +20%...

lets keep kicking that can down the road and ride this till the bitter end

Sat, 09/10/2011 - 19:50 | 1655350 bid the soldier...
bid the soldiers shoot's picture

I think we'll start rioting when every other country does. There's nothing to be gained by jumping the gun. So to speak.

I read someplace the Bernanke got was summa cum laud in downroad cankicking.

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