America Maxes Out Its Credit Card Again - Treasury To Raise Debt Limit By Another $1.2 Trillion On December 30

Tyler Durden's picture

You didn't think US consumer confidence could be bought for free now did you?


And the piece de resistance that 100% debt to GDP brings:


Just as we thought the circus was over if only for a few weeks. Also, this means that in a few days, the US debt ceiling will be raised from $15.194 trillion to $16.394 trillion. As a reminder, US GDP was just revised down to $15.176 trillion.

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SheepDog-One's picture

Got to be good for at least +20 on the S&P today huh fellas?

Mr Lennon Hendrix's picture

I love the smell of desperate Keynesianism in the smells like victory.

eureka's picture

RE: "You didn't think US consumer confidence could be bought for free now did you?"

- and Keysianism...

It's all good  - you just have to be an optimist - and that is the chief charactertrait of the US psyche - just think of our beloved heroes of optimism & hope: Donald Duck, Donald Trump, Donald Rumsfeld... and of course The Prince of Peace & Hopium par excellence, His Athletic Rockstar Emminence "Donald"-Barrack Obama...

The parade of of US clowns is endless.... - and cheap - all it costs is a little optimism - is that too much to ask?

Sudden Debt's picture

Waw... This reads like a poem!
You just won a trip to greece!
The land that doesn't has a printing press like the US has but spends money just like it!

The Big Ching-aso's picture



I'm not too worried.   After we run out of credit we just become a cash n' carry economy.    Put cash in wheelbarrow, carry to store, put groceries in wheelbarrow, carry home.   No need then for credit ceiling hikes.    Everyone happy-happy.        Wheelbarrow manufacturers in Beijing especially.


StychoKiller's picture

Umm, just keep an eye on that wheelbarrow, someone might steal it!

BandGap's picture

Psssst! They are not desparate. They get what they want, every time.

Mr Lennon Hendrix's picture

They want oil +$100?  Gold +$1600?  There are limitations to the Fiat Ponzi's breadth. scope, and measures of alchemy.

NotApplicable's picture

It's all a matter of timing. Once they've transferred all of the wealth from the debt slaves, they'll have no problem with everything being priced out of everyone else's reach.

As for the idea of preventing a revolt, well, since (as Mises said) there's no escaping the crack-up phase of a credit-fueled boom, so, being the creative-destructionists they are, they'll just use the opportunity to thin the herd of the rowdy young bucks while shepherding the passive into the protective police state.

By and large, private property will once again be possessed only by the ruling class.

And with that cheerful thought, maybe I should just go back to bed.

Stoploss's picture

LOLOLOL!!!!! Didn't even make it to the end of the year!!

Sudden Debt's picture

And now we know what santa was carrying in his big red bag!
Benny used a helicopter, santa uses a sled

solgundy's picture

help destroy Obama

Ned Zeppelin's picture

if not the Kenyan, who would you have us vote for?

Excursionist's picture

<sigh> Normally views like this could be written off as sarcasm, attempts at humor, etc., but we seem to have arrived at a point where Rome (both literal and figurative) burning to the ground is perhaps the fastest way to get back on track.

Silver Dreamer's picture

We already have our own barbarian horde too to help burn it down.

mailll's picture

Or elect any other puppet that the elite put before us.  I personally would vote for Ron Paul, even though if elected, he would have to take on the beast (new world order/one world government). 

FinHits's picture

How does the math go again?

Eurozone has something like €8,500 billion of government debt, or at 1.30 USD fx rate $11,000 billion. It is increasing, but not as fast as the debt in e.g. USA or Japan.

All of those three have started to put debt brakes in their system (although I am not too sure about Japan). The European debt brake ("fiscal compact") probably has the highest chance of working, since the markets are voting against debt growth in the Eurozone periphery, but are not doing the same for USA or for Japan.

In the Keynesian world the debt brakes are supposedly bad, but it would be great to see if this could be proven wrong with a real world experiment. Eurozone looks like a possible anti-Keynesian guinea pig in 2012. Maybe it will get slaughtered, at least the PIIGS parts. Maybe not.


It would be great if ZeroHedge would calculate the debt velocity of various countries. Probably absolute numbers in USD billions/year are more interesting than % of GDP since the Keynesian government spend bias distorts GDP figures.




SheepleLOVEcheddarbaybiscuits's picture

hahah whats the point of a debt ceiling if all they do is raise it?

Iriestx's picture

That's what I don't understand.  Just raid it by $900t and be done with the whole affair... at least until Barry maxes that figure out mid-way through his second term.

Dr. Engali's picture

It's called politics. How can one side point the finger at the other and say "look how much they are spending" without the political theater of a debt ceiling?

NotApplicable's picture

It's called the political theatre of directed history. They go through this idiocy long enough, and eventually people will just let them turn this practice into another automatic function where X is added annually, and all of the infighting will be over the value of X (ultimately obscuring the fact that X should be a constant in order to have any value). Once that battle becomes too entrenched, then they will turn the annual constant into a variable as well, making it semi-annual, or quarterly, monthly...

Oh, and while all the sheeple fight over these variables, they never once bother to consider that they should never even exist (if the world is to be a better place). Nope, to them there is nothing we cannot afford to buy ourselves collectively on credit. The only question is for what scam to spend it on.

tarsubil's picture

Every once and a while it can be used as a distraction. But not too often, or the people will catch on. Can't have the people catching on.

gdogus erectus's picture

Debt ceiling?  No, no, no - it's the debt target.  I think that's just a typo.

Iconoclast's picture

Only two weeks back it wasn't projected to bust through the new limit until March has happened? USA has burnt through an extra $2.1 trl inside 4 months..???!!! Fukc...

mailll's picture

Like most people already knew, it was all a charade.  The ultimate goal is to spend, spend, spend until we crash.  But the puppet politicians already got their rewards --- for being puppets.  And the American people are up in arms over this, literally.  In December, more guns were sold in one month than in any other month in US history, breaking the previous high set in November.

fuu's picture

Send in the clowns.

junkyardjack's picture

*Throw out the clowns

Fixed that for you

achmachat's picture

talking of clowns...

can you believe they were going to impeach Clinton for that cigar story?

just take a step back and compare that to what the current oval office occupier keeps doing to the US. As a person from the other side of the pond I am watching in total disbelief.

NotApplicable's picture

After the Coup of '63, what kind of beliefs can you possibly still hold?

Nobody For President's picture

"Total Disbelief" would be a great psuedoname for a future ZH'er.

There is usually at least one 'news' article a day that does that to me.

Moe Howard's picture

TPTB had him impeached for lying about the sex story.

The reason they investigated the sex story is so they could ignore the treason he committed transfering missle tech to Red China. When TPTB say look here, always look the other way to see what they don't want you to see.

Presidents and other powerful people have sex, all kinds of sex, with all kinds of people. It only comes out as a distraction.

Using a cigar on a woman over 21 is not a crime.

Scirocco's picture




Cole Younger's picture

Do you really think they could do that? The U.S. would sink all there ships, take out there missle defences, and have a turkey shoot with there aircraft.

f16hoser's picture

You sink half a dozen big ships in the Straight, it's blocked-off. Not that deep. Fucked either way.

Scirocco's picture

The US is surely superior, but go collect thousands of mines thrown in the water that would make any oil tanker look like a giant torch...


Nobody For President's picture

Iran has a couple; of allies: One of them is named Russia.

The other is named China.

It is a consideration...

Natural Man's picture

So 15,000,000,000BAMA is now becoming 16,000,000,000BAMA? GREAT!!!

JPM Hater001's picture

My favorite part was when they formed the debt commission followed by the Super Committee.  Together they have done a great job increasing the deficit. 


WonderDawg's picture

Just remember, it's not a debt ceiling, it's a debt target.

Cast Iron Skillet's picture

got it. so the gov has been overachieving, and everybody gets bonuses.

natty light's picture

Next there will be a double-secret probation limit.

Manthong's picture

Debt is an asset.

It is a claim on future earnings if you are a bank.

It is a claim on your children if you are a government.

MFL8240's picture

Are they fucking kidding? Just set the limit at 20 Trillion and end this horeshit.

Cole Younger's picture

20 trillion will be here soon enough so you will get your wish.