Debt ceiling will have to be raised again on September 29

If they actually do spend through this within a few months, which I agree the math says they certainly will, then the people need to stand together with a voice that defeans them. No more, no way. If it means we default, then so be it. It's GOING to happen eventually, there is no doubt about that anymore. May as well get it kicking now and let Obama enjoy the fruits of his twisted labors instead of waiting for the next President to be clobbered by the results of socialism gone totally insane.

reply to post by Vitchilo


Whether cuts are jokes or not, they are still cuts that change your outlook. The debate is not decision based, its opinion based.

Originally posted by EspyderMan
reply to post by Vitchilo

 

Whether cuts are jokes or not, they are still cuts that change your outlook.

Won't have time to change the outlook. There's basically NO CUTS for 2012.

Well guess what, the US won't make it financially to 2021. So there's no reason to waste time including worthless 10 years debt projections.

reply to post by Vitchilo


S&F OP, thanks for bringing this up.....even if it makes me want to RAGEQUIT America.

reply to post by Vitchilo


Nice (if disturbing) summary. They might as well start the next "raise the debt ceiling" process now, because it'll take them months to approve anything based on the last round. I think the debt ceiling debate has finally awakened people to the fact that our country is so far in debt that there's really no hope of recovery, and the plummeting stock market is an indication of this awakening. It's lost nearly 10% in the last week and the decline is steepening rather than lessening. People are running for the exits screaming.

reply to post by Vitchilo

My only question is this;
Does Obama know how to play a fiddle?

Originally posted by Vitchilo
Current debt : 14.532 trillion
Current debt ceiling : 14.694 trillion

OK, I did some more checking into this and your current debt ceiling number appears to be incorrect. The old debt ceiling was 14.3 trillion (source) and the bill that was just passed increased it by 2.4 trillion (source) which is the largest increase ever. So the new debt ceiling is 16.7 trillion. That's not expected to be reached until 2013 (source). That makes sense, they're pushing the problem out to the next administration

Originally posted by backinblack

Scary numbers.

I believe there's two things you forgot though. Budget increases 8% every year. Not sure if that is reflected, and not certain when the fiscal year is due. Secondly, It seems they don't pass budgets anymore. I can't recall the last time we had one, or sent one to Obama for his Signature. The motto has been let it ride, with the 8% increase. Likely to hide the numbers better.

But isn't the budget for revenue also meant to increase every year?
That's what healthy economies do.

I don't think we have had a healthy economy since the first four to six years of Clinton (No, I don't like Slick Willy the liar, he just had a better congress than Obama). A healthy economy would have growth and less than 4% real unemployment.

Eight Percent compounded spirals the spending out of control, especially for an entity that adds nothing to the GDP or economy. All the government ends up doing is leeching off the businesses that actually produce something. I would think that a business that has employees working under contract with a guaranteed 8% increase in their pay and benefits wouldn't be viable for too long, especially if the CEO did not watch their expenditures. Not to mention they would have to go to their customers and demand an 8% increase in prices every year.

Originally posted by Vitchilo

Originally posted by EspyderMan
reply to post by Vitchilo

 

Whether cuts are jokes or not, they are still cuts that change your outlook.

Won't have time to change the outlook. There's basically NO CUTS for 2012.

Well guess what, the US won't make it financially to 2021. So there's no reason to waste time including worthless 10 years debt projections.

The 2012 congress wont be held to the outlook either, as no congress can bind a future congress. No cuts for 2012 or any year after. Only real cuts may come from the "Super Congress" and even then creative accounting and tax "revenue" can hide spending cuts. I agree, fiscally, we wont make it.

Originally posted by SavedOne

Originally posted by Vitchilo
Current debt : 14.532 trillion
Current debt ceiling : 14.694 trillion

OK, I did some more checking into this and your current debt ceiling number appears to be incorrect. The old debt ceiling was 14.3 trillion (source) and the bill that was just passed increased it by 2.4 trillion (source) which is the largest increase ever. So the new debt ceiling is 16.7 trillion. That's not expected to be reached until 2013 (source). That makes sense, they're pushing the problem out to the next administration

edit on 4-8-2011 by SavedOne because: (no reason given)

In fact, we are both correct.

The total debt ceiling hike is 2.4 trillion, but it's in stages. The first one is 400 billion, the second one is around 500 billion and the third one is 1.5 trillion. But Obama is the one in charge to raise it every phase runs out. Each time, congress can stop Obama from doing so with a 2/3 vote.

Basically the bill was aimed to ``make Obama raise the debt ceiling hike`` while the republicans would say it's not their fault, it's all Obama... which is total BS... since republicans passed that bill in the first place.

reply to post by Vitchilo


if everyone in america didn't go to work for just one day,it would really screw up the system! the government would be forced to think about how strong strength really is in numbers!!!

Not sure where this additional debt is coming from. Are they issuing bonds to be bought by public/foreigners or is the FED going to buy the bonds? If the latter, that is the amount of new currency being introduced into the US economy and could result in runaway inflation. But I suspect the banks will be buying the new bonds issued using the funds they are parking with the FED. The US Treasury pays higher interest than the FED.

New debt numbers from the treasury...so I had to update.


Debt for fiscal year starting October 1 2010 till August 3 2011 : 963.76 billion or 3.15 billion/day
Debt for calendar year 2011 till August 3 : 576.68 billion. 2.68 billion/day
Current debt as of August 3 : 14.576 trillion
Current debt ceiling : 14.694 trillion (first phase) 15.194 trillion (second phase) 16.694 trillion (final phase)

At the current average rate of 2.915 billion in new debt/day (or about 9.40$ in new debt per day for every citizen in America...and that is just federal) it will take about 40 days before reaching the first phase of the debt ceiling hike, aka September 12 or so. The second phase will be reached around March 3 2012. And the third phase around July 29 2013.