Bush Seeks Increase in National Debt Limit

New York Times ^ | Wednesday, December 25, 2002 | By EDMUND L. ANDREWS

[JohnHuang2]

ASHINGTON, Dec. 24 ? The Bush administration asked Congress today to approve another increase in the limit on national debt, saying it will run out of the authority to borrow money by late February.

The deputy Treasury secretary, Kenneth W. Dam, in a letter to the House speaker, J. Dennis Hastert, cited the cost of combating terrorism and the economic slowdown for the government's growing indebtedness.

The federal government, which enjoyed a budget surplus as recently as two years ago, had a shortfall of $157 billion this year and is expected to have a larger one in 2003.

Congress raised the government's debt limit in July by $450 billion, to a total of $6.4 trillion, but administration officials predicted even then that they would need to raise the limit again by some time next year.

Though today's announcement was no surprise, it highlighted the sharp deterioration in the government's financial condition and provided fresh ammunition for Democratic lawmakers who want to thwart President Bush's plan to push additional tax cuts through Congress early next year.

Mr. Dam said the government's debt had been swollen by needs for the Social Security and Medicare trust funds, the costs of fighting terrorism and the economic slowdown.

But he made only oblique reference to the contribution made by the tax cuts that Mr. Bush pushed through last year, referring to the cost of "restoring economic performance."

Senator Kent Conrad, Democrat of North Dakota and the senior Democrat on the Senate Budget Committee, seized on today's request to denounce Mr. Bush's campaign to make permanent last year's tax cuts.

"By raising the debt ceiling to pay for the president's tax cuts and his other spending, the Bush administration is wanting our children and grandchildren to pay our bills," Mr. Conrad said in a statement.

Treasury officials would not say how much they want to increase the debt ceiling, which will be subject to negotiation with Congressional leaders as the deadline approaches.

The negotiations will have to take place at the same time that Mr. Bush will be campaigning for his next package of tax cuts aimed at stimulating the economy. Mr. Bush is expected to outline his package either in or before his State of the Union address in late January. Many people expect him to call for measures costing as much as $300 billion over 10 years.

[JohnHuang2]

Wednesday, December 25, 2002

Quote of the Day by demosthenes by Jonathon Spectre

[XBob]

"The federal government, which enjoyed a budget surplus as recently as two years ago,"

what a pile of crap/lies - there has not been a surplus since the 60's.

The Debt To the Penny

    Current                Amount

  12/23/2002        $6,328,050,248,796.37


   Current
    Month

  12/20/2002        $6,327,507,067,992.90
  12/19/2002        $6,327,769,228,745.17
  12/18/2002        $6,332,067,061,221.38
  12/17/2002        $6,333,988,644,191.46
  12/16/2002        $6,326,836,970,262.51
  12/13/2002        $6,339,815,664,543.29
  12/12/2002        $6,340,621,206,423.40
  12/11/2002        $6,342,858,747,140.36
  12/10/2002        $6,345,906,143,621.31
  12/09/2002        $6,330,151,460,851.70
  12/06/2002        $6,330,682,270,007.28
  12/05/2002        $6,332,961,664,313.67
  12/04/2002        $6,326,481,571,338.52
  12/03/2002        $6,327,137,536,388.61
  12/02/2002        $6,338,699,979,592.55

    Prior
    Months

  11/29/2002        $6,343,460,146,781.79
  10/31/2002        $6,282,527,974,378.50

          
  Prior Fiscal
     Years

  09/30/2002        $6,228,235,965,597.16
  09/28/2001        $5,807,463,412,200.06
  09/29/2000        $5,674,178,209,886.86
  09/30/1999        $5,656,270,901,615.43
  09/30/1998        $5,526,193,008,897.62
  09/30/1997        $5,413,146,011,397.34
  09/30/1996        $5,224,810,939,135.73
  09/29/1995        $4,973,982,900,709.39
  09/30/1994        $4,692,749,910,013.32
  09/30/1993        $4,411,488,883,139.38
  09/30/1992        $4,064,620,655,521.66
  09/30/1991        $3,665,303,351,697.03
  09/28/1990        $3,233,313,451,777.25
  09/29/1989        $2,857,430,960,187.32
  09/30/1988        $2,602,337,712,041.16
  09/30/1987        $2,350,276,890,953.00

SOURCE:  BUREAU OF THE PUBLIC DEBT

[B4Ranch]

What would be the result if Congress said, "NO"?

[XBob]

that would be a first, whores saying no to other people's money.

[savedbygrace]

Proving that we haven't had a surplus in many years.

[meenie]

What really blows your mind is what the monthly totals are since we went into recession. Two month ago, 79 billion, this past month 63 billion. Take these figures by twelve and see where that leads. Twenty billion here and thirty there and they sound like it is chicken feed. We are entering a period where foreigners are going to drive the dollar down. Inflation ahead!

[XBob]

the current recession, caused by xlintons tax increases, would have begun in 98 or 99, except for y2k. The y2k scare caused a gigantic inflow of foreign capital, seeking protection from y2k.

then, after y2k didn't happen, and it was certain that it was not going to happen (at the end of the first quarter of 2000), the world started pulling out their money (March/April 2000). And technically, that is when the current recession started, caused by xlinton's tax hikes in 93-94.

Monitary policies take a long time to really impact (5-10 years).