Treasury boosts borrowing needs to $188B

[sabra]

http://www.businessweek.com/ap/financialnews/D8FF7IP82.htm?campaign_id=apn_home_down&chan=db



Treasury boosts borrowing needs to $188B

JAN. 30 3:38 P.M. ET The government expects to borrow a record $188 billion in the January-March quarter, even more than it anticipated three months ago, the Treasury Department announced Monday.

The total will surpass the old mark of $146 billion set in the first quarter of 2004, a year in which the federal budget deficit hit an all-time high in dollar terms of $413 billion.

After declining last year to $319 billion, this year's deficit is expected to reach $400 billion, according to the Bush administration, which has said part of that increase will reflect higher spending to rebuild New Orleans and other hurricane-damaged areas of the Gulf Coast.

[merwin]

1. They're not lying. I'm sure the'll put in a couple billion for Katrina

rebuilding. That does count as "a part of the increase".

Of course, the rest of the increase is money down the toilet.

[NanceGreggs]

2. MEMO TO CHENEY:

Why don't you ask your BIG OIL buddies for some of their spare cash? Thanks to you and President PNAC-chio, they probably have that kind of money under the cushions of their head office couches ...

[UpInArms]

3. The US is in "technical default" because it is over the mandated ceiling

(Congress sets the limit of borrowing), but has continued to borrow outside of its authority -

http://upload.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=102&topic_id=2073865&mesg_id=2074195

Unless the debt limit is raised, these bond should not be allowed to be sold.

[EuroObserver]

5. But, there's a "war" on. So screw the technicalities

Puke dixit. :hi:

[WhiteTara]

6. thanks for the info, I was wondering about that

Let's see what happens now. What do you think? Bidness as usual? Will anyone notice or comment?

[Inland]

4. Wonder if this will be highlighted in SOTU?