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Expect Debt Limit to Be Reached Near End of 2012
CNS News ^ | November 6 2012 | Terence P. Jeffrey

Posted on 11/07/2012 4:07:15 AM PST by tired&retired

On Aug. 2, 2011, President Obama signed a deal he had negotiated with congressional leaders to increase the debt limit of the federal government by $2.4 trillion. But, now, after only 15 months, almost all of that additional borrowing authority has been exhausted.

Although Treasury revealed in its statement on Wednesday that it was likely to hit the debt limit by the end of the year, Treasury Secretary Geithner failed to respond to a letter that Senate Finance Ranking Member Orrin Hatch and Senate Budget Ranking Member Jeff Sessions sent to him on Oct. 15 demanding that he notify them by Nov. 1 what he believes to be the exact date Treasury will hit the debt limit and the date he expects to begin using "extraordinary measures" to avoid it.

As of Oct. 31, according to the Daily Treasury Statement (DTS), the portion of the federal debt subject to the legal limit was $16,222,235,000,000--just $171.765 billion below the $16,394,000,000 debt limit.

In October alone, according to the DTS, the debt subject to the limit increased by $195.214 billion.


TOPICS: Business/Economy
KEYWORDS: bankrupt; broke; debt; inflation; spending; treasury
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How fast will this train be going when it hits the immovable wall?
1 posted on 11/07/2012 4:07:21 AM PST by tired&retired
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To: tired&retired

Immovable?

The GOP gave them the ceiling rise last time.

Why won’t they give it to them this time?


2 posted on 11/07/2012 4:10:29 AM PST by Tzimisce (THIS SUCKS)
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To: tired&retired

There is no debt limit, they will just do away with that once and for all


3 posted on 11/07/2012 4:12:18 AM PST by GeronL (http://asspos.blogspot.com)
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To: tired&retired

Here we go. The deficit needs to be dealt with in the face of an electorate that just voted for a Nanny State president. Also, the 617 billion dollars taken out of medicare was not a phony political line. That really does happen under Obamacare. I’m not sure how this plays out for the nanny state crowd, either.

Finally, on a less imimnet problem, we have got to do immigration reform. Hispanivs would naturally fit into a GOP coalition so, that issue has got to be dealt with soon. We need their votes. I’m not talking about amnesty. I’m talking about real immigration reform (enforcible border policy, guest worker program...you know real reform). This is popular with the public and needs to be resolved immediately.


4 posted on 11/07/2012 4:13:28 AM PST by Mustangman (The GOP)
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To: Tzimisce

They will either raise it, make it raise automatically annually forever or just abolish it.

Beohner can’t wait to lick Barry’s shoes


5 posted on 11/07/2012 4:13:30 AM PST by GeronL (http://asspos.blogspot.com)
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To: GeronL

Print more friggin money like they did last time.

It’s not fr me to worry about Obama is in charge let him worry about it.


6 posted on 11/07/2012 4:15:17 AM PST by Venturer
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To: GeronL

Money now magically grows from trees. Welcome to Weimar 2012.


7 posted on 11/07/2012 4:16:02 AM PST by ari-freedom
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To: Mustangman
Hispanics would naturally fit into a GOP coalition

So, how did that work out yesterday, those natural Republicans?

and why do so many assume that hispanics are illegal or only care about this issue anyway?

8 posted on 11/07/2012 4:16:02 AM PST by GeronL (http://asspos.blogspot.com)
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To: GeronL

Don’t see how we survive four years of that. The currency has to break at some point.


9 posted on 11/07/2012 4:17:54 AM PST by CommieCutter
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To: CommieCutter

Do you really think Obama cares?


10 posted on 11/07/2012 4:20:02 AM PST by GeronL (http://asspos.blogspot.com)
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To: CommieCutter

Get prepared for the currency crash then
HELP IT HAPPEN.


11 posted on 11/07/2012 4:24:22 AM PST by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: tired&retired
The House GOP should do nothing. Let the economy go! Almost every time, an alcoholic has to hit rock bottom before they pick themselves up and that’s exactly what has to happen to America.
12 posted on 11/07/2012 4:27:17 AM PST by tobyhill (Obamacare, the final nail in the US coffin.)
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To: tired&retired

US debt: take a penny, double it every year, how long before....?


13 posted on 11/07/2012 4:28:03 AM PST by eccentric (a.k.a. baldwidow)
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To: GeronL

I live in California. As long as there is no final immigration reform bill they will naturally vote for the Dems..Period. They don’t trust the GOP. However, they have great family values, are hard workers, and are srongly catholic. We need this group on our side or we’ll never win another election ever. To achieve this, we need to push immigration reform to get this isssue off of the table. Again, I’m talking about real reform..some sort of guest-worker policy, fines for employers of illegaals, etc. The polls show most Americans support this sort of thing (even if most hispanics want open borders) and we better bring this issue to the forfront fast. Once this issue is put to bed, we can start wooing this voter with our principles. Seriously-This should be goal #1 this next two years..


14 posted on 11/07/2012 4:28:47 AM PST by Mustangman (The GOP)
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To: tobyhill

Agree. Do nothing. On the debt ceiling and the fiscal cliff. Give the public exactly what they voted for.


15 posted on 11/07/2012 4:32:06 AM PST by tanknetter
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To: tired&retired

What immovable wall? The Repubs will happily approve another extension.


16 posted on 11/07/2012 4:33:20 AM PST by ScottinVA (Pray hard!)
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To: GeronL

Likely solution
The democrats floated that idea last time, that the prsident just do away with the debt ceiling unilaterally and not have to wait for Congress

What Constitution? What checks and balances?
obama WON.
Works for the Hugo Chavez governing model
who gonna stop him? John Boehner?


17 posted on 11/07/2012 4:36:22 AM PST by silverleaf (Age Takes a Toll: Please Have Exact Change)
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To: tired&retired

Design $1 trillion bills with Obama`s face on the front and fire up the printing presses.


18 posted on 11/07/2012 4:37:17 AM PST by ScottinVA (Pray hard!)
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To: tired&retired

Most federal revenues come from individual taxpayers. Personal income taxes are the largest portion of total tax revenues. Social Security and Medicare payroll taxes are the second-largest source.

PERCENTAGE OF TOTAL FEDERAL REVENUE (2011)

Source: Congressional Budget Office.
Total Revenue: $2.3 Trillion (2011) $2.469 trillion (2012)
Social Security $819 Billion(2011) $841 billion (2012) (Running at a deficit)

Net = $1,481 Billion (2011) $1,628 Billion (2012)

$1,481 B Net Revenue / $16,200 B debt = 9.14%

$1,628 B Net Revenue / $16,600 B debt = 10%

It is not possible to cut spending and raise taxes combined to balance the budget. The head in the sand approach will not work. If they try to inflate away the debt, the interest alone will exceed our total revenue.


19 posted on 11/07/2012 4:40:39 AM PST by tired&retired
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To: tired&retired

The way the government is printing money, it is like playing Monoply against the bank!


20 posted on 11/07/2012 4:44:40 AM PST by tired&retired
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