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787.6 billion in pensions.
898 billion in health care.
140.9 billion in education.
928.5 billion in defense.
464.6 billion in welfare.
57.3 billion in protective services.
104.2 billion in transportation.
29 billion in general government expenses.
151.4 billion in other spending.
The U.S. will breach the limit by the end of May, according to Treasury, and could default if Congress fails to authorize an increase.
Democrats, who control the 100-seat Senate with 53 votes, probably won’t need Rubio’s support to raise the debt ceiling, though Senator Jim DeMint, a South Carolina Republican, is threatening a filibuster of any measure unless lawmakers accept a balanced-budget amendment.
Originally posted by FarArcher
Does any rational, sane, prudent person think shutting down the Federal Government is or could ever be a bad thing?
I wish the SOB's would all go home and never come back to DC.
This shutting down the government is the best thing that could happen. I hope we default on everything, crash the whole thing, and maybe if we get another chance, we could use a bit of sense.
Maybe the era of big government isn't over, after all.
As Americans finish their annual tax-filing flurry to meet a Tuesday deadline, it is true that tax rates are lower than they were a few years ago. But according to a different yardstick, the federal government's reach is expanding.
Slightly over half of all Americans – 52.6 percent – now receive significant income from government programs, according to an analysis by Gary Shilling, an economist in Springfield, N.J. That's up from 49.4 percent in 2000 and far above the 28.3 percent of Americans in 1950. If the trend continues, the percentage could rise within ten years to pass 55 percent, where it stood in 1980 on the eve of President's Reagan's move to scale back the size of government.
Despite pronouncements by Congressional leaders to the contrary, it appears as though the key parties involved have reached a tentative compromise on a deal to cut $33 billion in discretionary budget authority for fiscal 2011. That $33 billion would include the relatively painless $10 billion of cuts that were already passed as part of the last two continuing resolutions.
A final deal is by no means certain.
The positive outcome of this issue then opens the door to the next strawman catalyst: the proposed increase of the US debt ceiling, which also has no chance of not passing (the alternative is a default of the US), yet a favorable resolution will once again be spun as a market moving event adding another 10-20 points to the S&P.
We still project that Treasury will hit the debt limit on May 16, if it doesn't resort to the tools at its disposal to create room under the debt ceiling. Of course, we expect Treasury will use all means available to avoid breaching the debt limit. We still expect that Treasury will have exhausted those tools and hit the debt limit on June 30. The forecast is subject to more than the usual amount of uncertainty, as we head into the all-important April 15 tax date (April 18 this year.) We expect Treasury to provide an update to its own forecast for hitting the debt ceiling sometime next week.
As we indicated earlier, on a purely technical basis, the US total debt already surpassed the ceiling, although loopholes such as incremental maturities of debt, bill redemptions, the "debt subject to ceiling" definition and other semantics will likely push D-Day until mid-April, ultimately depending on the dynamics of tax refunds and revenues over the next two weeks.
That said, look for both of these events to be consistently spun as key positive outcomes, even though the chance of these things actually not transpiring in a non-favorable light is non-existent.
Originally posted by Rockpuck
reply to post by Vitchilo
Slash Health-care and Defense by a minimum of half and we will be at least in a manageable deficit.
Originally posted by Seekeye2
It's ok - 'Don't Worry - Be Happy' those nice Billionaires will bale us out - they'll want to return the favour won't they.
You put some work in there OP but I'm feelings a bit despondent - we all talk and talk and talk - does anybody do anything - NO and they know we won't, that's how they have got away with it for so long.
Originally posted by Vitchilo
America won't default on foreign creditors (they can't due to the 14th amendment and there's enough taxpayer money to pay for it)... but they sure as hell will default on the American people.