America Maxes Out Its Credit Card Again - Treasury To Raise Debt Limit By Another $1.2 Trillion On December 30
You didn't think US consumer confidence could be bought for free now did you?
- U.S. TREASURY SAYS DEBT LIMIT TO BE RAISED BY $1.2 TRILLION
- U.S. DEBT TO BE $100 BLN WITHIN LIMIT ON DEC. 30, TREASURY SAYS
- STEPS FOR INCREASING DEBT LIMIT UNDER 2011 BUDGET CONTROL ACT
And the piece de resistance that 100% debt to GDP brings:
- OBAMA ON DEC. 30 LIKELY TO ASK CONGRESS TO RAISE DEBT LIMIT
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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Got to be good for at least +20 on the S&P today huh fellas?
I love the smell of desperate Keynesianism in the morning....it smells like victory.
It smells like QE-ictory
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?
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!
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.
Umm, just keep an eye on that wheelbarrow, someone might steal it!
Psssst! They are not desparate. They get what they want, every time.
They want oil +$100? Gold +$1600? There are limitations to the Fiat Ponzi's breadth. scope, and measures of alchemy.
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.
Commodity police state.
LOLOLOL!!!!! Didn't even make it to the end of the year!!
And now we know what santa was carrying in his big red bag!
Benny used a helicopter, santa uses a sled
AND ALL IN THE NAME OF THE FED!!!
help destroy America.........re-elect Obama
if not the Kenyan, who would you have us vote for?
Someone that can show the banksters who's boss?
<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.
We already have our own barbarian horde too to help burn it down.
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).
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.
BAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA!!!
...Humbug.
hahah whats the point of a debt ceiling if all they do is raise it?
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.
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?
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.
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.
Debt ceiling? No, no, no - it's the debt target. I think that's just a typo.
Only two weeks back it wasn't projected to bust through the new limit until March April..wtf has happened? USA has burnt through an extra $2.1 trl inside 4 months..???!!! Fukc...
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.
Send in the clowns.
*Throw out the clowns
Fixed that for you
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.
After the Coup of '63, what kind of beliefs can you possibly still hold?
"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.
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.
SILVER BITCHEZ !
AND OIL...
*IRAN TO CLOSE STRAIT OF HORMUZ IF OIL SANCTIONS IMPOSED: IRNA
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.
You sink half a dozen big ships in the Straight, it's blocked-off. Not that deep. Fucked either way.
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...
Iran has a couple; of allies: One of them is named Russia.
The other is named China.
It is a consideration...
So 15,000,000,000BAMA is now becoming 16,000,000,000BAMA? GREAT!!!
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.
Bravo.
Just remember, it's not a debt ceiling, it's a debt target.
got it. so the gov has been overachieving, and everybody gets bonuses.
Next there will be a double-secret probation limit.
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.
Japan
Are they fucking kidding? Just set the limit at 20 Trillion and end this horeshit.
20 trillion will be here soon enough so you will get your wish.
I was just trying to calculate what it would be at the end of January 2013, in 13 months. Any guesses?
@ Cole Younger,
20 Trill, fuck that! I say if you're going to go big, GO BIG! Raise that fucker to 50 Trill.
It will be at 23 trillion at current run rates by 2015.
"To infinity and beyond!"
..........it all makes sense when you factor in 5%+ GDP.................over 150 years
So they agreed on all of those cuts the super-duper congress critter committee came up with?
In reality, the debt must expand, and private debt expansion is dead, state and local is dead, so the FEDs must expand the debt to keep the equation running.
pods
or start a war............
Yep. Wars are a great way to expand the debt. That is why we went on a decade+ long binge after the dot com bubble collapsed.
With the horeshit stories flung against the wall about Iran (the car dealer going to whack the Saudi guy in DC for starters), I think the next target is already chosen.
Wars also happen to keep lots of young men far away from home. Cannot have that many sitting around wondering why things are so shitty. Sooner or later they will figure out the problem.
pods
Already stories in the military press that too many soldiers state side swamping services, housing etc.
Wen Jiabao.
BARBRA STREISAND
Niels Bohr
Max Plank?
When GIABO.
Right now?
At this point the numbers have lost their meaning. What do young people have to look forward to anymore? Go to collage - return home to live with Mom & Pop and to wait in line for some trivial job? I'd rather opt out of the system altogether. Live off the land etc... Its pathetic!
Buy some property in the wilderness and live off grid. No more hussle, bussle, or bull shit. Of coarse property taxes will be a bitch...
Somebody somewhere said Chile is a great place to live.
Hey when dose american idol start?
So how maybe we switch back to Mcdollar to have asense of proportion.
http://www.ecomm-unity.com
Panic! Government shutdown! And in the end, they'll make it. More growth. No crisis. Happy 2012.
Obama at this rate in four more years could easily bankrupt us all.
I am no fan of Obama but he does not hold the purse strings. Congress is the problem.
Four more years? It won't take that long. Some would say "we" are already bankrupt.
@ WonderDawg & Cole,
we've been bankrupt before, twice. You forget about the bankruptcy of 1871 & 1933 when Roosevelt sold all of our Credit, labor and land to the foriegn Banking Cartels.
From a speech in Congress in The Bankruptcy of the United States Congressional Record, March 17, 1993, Vol. 33, page H-1303, Speaker Representative James Trafficant Jr. (Ohio) addressing the House states:
“…It is an established fact that the United States Federal Government has been dissolved by the Emergency Banking Act, March 9, 1933, 48 Stat. 1, Public Law 89-719; declared by President Roosevelt, being bankrupt and insolvent. H.J.R. 192, 73rd Congress m session June 5, 1933 – Joint Resolution To Suspend The Gold Standard and Abrogate The Gold Clause dissolved the Sovereign Authority of the United States and the official capacities of all United States Governmental Offices, Officers, and Departments and is further evidence that the United States Federal Government exists today in name only.
The receivers of the United States Bankruptcy are the International Bankers, via the United Nations, the World Bank and the International Monetary Fund. All United States Offices, Officials, and Departments are now operating within a de facto status in name only under Emergency War Powers. With the Constitutional Republican form of Government now dissolved, the receivers of the Bankruptcy have adopted a new form of government for the United States. This new form of government is known as a Democracy, being an established Socialist/Communist order under a new governor for America. This act was instituted and established by transferring and/or placing the Office of the Secretary of Treasury to that of the Governor of the International Monetary Fund. Public Law 94-564, page 8, Section H.R. 13955 reads in part: “The U.S. Secretary of Treasury receives no compensation for representing the United States…
Prior to 1913, most Americans owned clear, allodial title to property, free and clear of any liens of mortgages until the Federal Reserve Act (1913) “Hypothecated” all property within the Federal United States to the Board of Governors of the Federal Reserve, in which the Trustees (stockholders) held legal title. The U.S. Citizen (tenant, franchisee) was registered as a “beneficiary” of the trust via his/her birth certificate. In 1933, the Federal United States hypothecated all of the present and future properties, assets, and labor of their “subjects,” the 14th Amendment U.S. Citizen to the Federal Reserve System. In return, the Federal Reserve System agreed to extend the federal United States Corporation all of the credit “money substitute” it needed.
Like any debtor, the Federal United States government had to assign collateral and security to their creditors as a condition of the loan. Since the Federal United States didn’t have any assets, they assigned the private property of their “economic slaves,” the U.S. Citizens, as collateral against the federal debt. They also pledged the unincorporated federal territories, national parks, forests, birth certificates, and nonprofit organizations as collateral against the federal debt. All has already been transferred as payment to the international bankers.
Unwittingly, America has returned to its pre-American Revolution feudal roots whereby all land is held by a sovereign and the common people had no rights to hold allodial title to property. Once again, We the People are the tenants and sharecroppers renting our own property from a Sovereign in the guise of the Federal Reserve Bank. We the People have exchanged one master for another.”
http://dev.republicoftheunitedstates.org/what-is-the-republic/history/
Enough Americans will vote for him. Obama re-elected, mark my words.
Not that it really matters either way.
I thought Ben Bernanke was the captain and Obama was the pool boy.
He should be impeached for this.
Every incumbent should be voted out.
This is serial irresponsibility and they are destroying this country.
Not only will none of what you suggest be done, but in actuality within a year just the fact that you had the nerve to suggest it in public will get you a one way ticket to Guantanamo to hang out with Haji and his terrorist Afghan buddies.
@ bob_dabolina,
Pssst, got news for you Bob. We're presently Goverend by three Criminal Branches of The Federal Government. Criminality being conducted out in the open. Illegal Wars, Insider Tradeing, Fast and Furious, NDAA, Torture etc...
Get the picture now, BOB?
Grover is pleased he has starved the beast; just 40 years ago taxes were >30% on those earning >$1MM/yr.
The unfunded liabilities will be the burden of our children.
As if it really matters.
Another 100 point selloff in ES will trigger an immediate panic right back into bonds.
A print below 1200 again will no doubt send the 10-yr. yield careening towards 1.50%.
Bonds, by the way, are still pinned within a stone's throw of 52-week highs.
2011 was one of the best year's ever for both fixed income and dividend stocks.
Every point up means more boomers retire. The boomers are retiring and soon will be selling. Buy all you can!
*SNOOOOOOOOOOOORT*
*Sniff*
Whew.
I agree.
...
WHAT "control"???
Fucking inept bozos in D.C...
It's right after "The house stabilization ACT"
Does this make previous article irrelevant?
Must be bullish. Market is responding favorably.
!.2 Trillion additional debt = 20 point bump in the Dow.
Take it up to an even 6 Trillion additional debt and we could see a triple digit day in the market!
Just imagine what another 10 trillion could do!