Debt ceiling will have to be raised again on September 29

Well after the months of theaters from the actors in Washington DC ending in the obvious and predicted conclusion, we will see the second act of that farce within 60 days. Get your popcorn early.

Debt for fiscal year starting October 1 2010 till August 2 2011 : 921.48 billion or 3.02 billion/day
Debt for calendar year 2011 : 534.4 billion. 2.49 billion/day
Current debt : 14.532 trillion
Current debt ceiling : 14.694 trillion

At the current average rate of 2.75 billion in new debt/day (or about 8.87$ in new debt per day for every citizen in America...and that is just federal) it will take about 58 days before reaching the debt ceiling yet again, aka September 29.

All the data from the US government here for current debt and debt ceiling and here for daily debt.

Also, US debt has grown by a nice 240 billion overnight and the US debt to GDP ratio has hit a post-ww2 high of 97.2%.

And that is just the debt ceiling issue. The US government have to pass the 2011 GOVERNMENT FUNDING BUDGET before October 1 (different from a budget) or else the federal government will shutdown and hundreds of thousands of federal employees will get furloughed.

reply to post by Vitchilo


nice job putting it in perspective once again...

now where's my pukebag at? S+F...

Hey V, thanks for posting. This here scares the hell out of me:

At the current average rate of 2.75 billion in new debt/day

How could they ever let it get this bad? That is an enormous figure. More importantly, how are they ever going to lower that figure and reverse it at some stage?

reply to post by Vitchilo

it will take about 58 days before reaching the debt ceiling yet again

What are you worried about? They will just increase the debt ceiling yet again. It's not like it's technically possible to pay back all your debt anyway, because there'd be no money left in circulation. The US economy is nothing but debt.

They've made it crystal clear that our economy is doomed, you don't even have to read between any lines. The numbers you provide prove it so. I'm pretty sure the show they are putting on is just to distract the plebs while the elites grab all of the lifeboats.

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.

According to the debt ceiling bill that passed, Obama can ask congress for another 500 billion debt ceiling raise before the end of the year, which congress can only refuse if 2/3 of senate/house rejects it (which they won't)...

And even after that, in 2012, Obama can ask congress to raise the debt ceiling another 1+ trillion, which of course congress can only refuse if 2/3 of house and senate refuse (which won't happen).


So the debt ceiling will be raised TWICE before the 2012 election... and Obama will do it by himself, as congress gave him the power to do so.

So really there will not be any crisis, just more rape rape rape.

You could probably remove half the people from government and we would not even notice. The only thing they do now is regulate and make investors scared, unless of course you are in the government, like monsanto.

Hey, thanks for posting this. I've heard on the news on fox, cnn, and bloomberg that it will be november..now its september for real??

Originally posted by Gemini67
Hey, thanks for posting this. I've heard on the news on fox, cnn, and bloomberg that it will be november..now its september for real??

Probably end of september/mid october.

But it doesn't really matter since Obama will be able to raise the debt ceiling and congress won't stop him.

Originally posted by Vitchilo
So the debt ceiling will be raised TWICE before the 2012 election... and Obama will do it by himself, as congress gave him the power to do so.

Thats astounding.
All that squabbling and arguing over the current debt, but in the end they just hand over the keys to get even more debt.

Reworking Vitchillo's numbers...
Current debt ceiling : 14.694 trillion plus the 1.5 trillion that Obama will create = 16.194 trillion.
Current debt : 14.532 trillion
At the current average rate of 2.75 billion in new debt/day = 604 days.

See, more partying time! The end of the worlld is aaages away.
Dont worry about it. Cross those bridges when we come to them.
Thats so far away none of you ever need to worry ever again.
In fact, I think those politicians deserve a pay rise.

reply to post by Vitchilo


Correct me if I'm wrong, but from what I understand he (Obama) had the power this whole time and this whole debt ceiling thing was a ruse. Correct?

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.

reply to post by backinblack


I dont believe the USA are interested in how "healthy economies" work.
This whole controversy is about partisanship, ideology and combat terms... not about what actually works or what would be reasonable.

If its not the "american way" it cant be right... so I guess the "american way" is proudly heading towards financial meltdown.

Pride goes before a fall...

reply to post by Vitchilo


While your numbers maybe be correct today, in one month that can all change based on cuts their making and new revenue they plan on generating.
It's too soon to tell if this will make things worse or better, but many like talk about the sky falling...

reply to post by Illumin Not I


No, congress has the power to make and approve budgets not the president.

Originally posted by Illumin Not I
reply to post by Vitchilo

 

Correct me if I'm wrong, but from what I understand he (Obama) had the power this whole time and this whole debt ceiling thing was a ruse. Correct?

No, he never had the power. Some cite the 14th amendment to justify the president having unlimited spending power. However, from my understanding, if the money hasn't been allocated by congress, the president can't spend without their approval. If our political system was working as it should, any president using the 14th amendment to spend more money, would likely be impeached.

Originally posted by Vitchilo
At the current average rate of 2.75 billion in new debt/day (or about 8.87$ in new debt per day for every citizen in America...and that is just federal) it will take about 58 days before reaching the debt ceiling yet again, aka September 29.

Check this out, your calculations may have just been shot as they have apparently spent $239 Billion in one day....

The Washington Times
U.S. debt shot up $239 billion on Tuesday — the largest one-day bump in history — as the government flexed the new borrowing room it earned in this week’s debt-limit increase deal.

The debt subject to the statutory limit shot way past the old cap of $14.294 trillion to hit $14.532 trillion on Tuesday, according to the latest the Treasury Department figures, which are released on the next business day.

That increase puts the government already remarkably close to the new debt limit of $14.694, which means one day’s new borrowing ate up 60 percent of the $400 billion in space Congress granted the president this week.
www.washingtontimes.com...

Originally posted by Illumin Not I
reply to post by Vitchilo

 

Correct me if I'm wrong, but from what I understand he (Obama) had the power this whole time and this whole debt ceiling thing was a ruse. Correct?

Nope. The 14th amendment clause the democrats were invoking is total BS.

Originally posted by EspyderMan
reply to post by Vitchilo

 

While your numbers maybe be correct today, in one month that can all change based on cuts their making and new revenue they plan on generating.

And if you followed the debate, you know the cuts are a joke and that there's no tax increase.

Originally posted by 7slinger

Originally posted by Vitchilo
At the current average rate of 2.75 billion in new debt/day (or about 8.87$ in new debt per day for every citizen in America...and that is just federal) it will take about 58 days before reaching the debt ceiling yet again, aka September 29.

Check this out, your calculations may have just been shot as they have apparently spent $239 Billion in one day...

That was all the debt that was created from May 16 to August 2... and it was taken into account.

reply to post by 7slinger


The Treasury were already over the previous cap, they just kept it off the ledger until the day after.

And not just a small amount, $240 billion overspent.

Can't wait for October, they will ask for another $500 billion and another by December.

I think 2012 will see the US debt ceiling hit $20 Trillion.

Fun times ahead..i hope everyone has their pitchforks at the ready.

Cosmic...