US budget agency: Govt debt cap to be hit July-Sept

[tritsofme]

WASHINGTON, Jan 26 (Reuters) - The Bush administration may have to seek a third boost in the federal debt ceiling in the third quarter of this year, according to a Congressional Budget Office report out on Monday.
"CBO estimates that under current policies, that limit will be reached this year sometime between July and September," the CBO said in its updated twice-a-year budget projections.

The budget estimates from the Congressional budget watchdog agency were slightly less pessimistic than its previous ones released in August, though its timeline for the debt ceiling remained the same. The 2004 budget shortfall is expected to be about $477 billion, down from a previously forecast $480 billion. It would still be a record, however.

The debt ceiling includes debt incurred from past annual shortfalls as well as government securities placed in federal trust funds for programs such as Social Security.

As of Thursday, the debt subject to the Congressionally-set limit stood at $6.963 trillion. The debt limit was set at $7.384 trillion in May 2003. Before that, it was upped to $6.400 trillion in June 2002 from the $5.950 trillion limit Bush inherited when he entered the White House in 2001.
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http://biz.yahoo.com/rf/040126/economy_treasury_debtlimit_1.html

[KissMyAsscroft]

1. At which point, all non essential rpograms start getting the axe.

Congrats America! You've been Punk'd!

[dw]

2. It's gonna be hard for a lot of Conservatives to punch that chad for Bush*

in November with this news still fresh from a couple of months previous.

$477 BILLION shortfall????????????

[Salviati]

3. Bush is so toast...

I mean he's already getting flack from actual conservatives about spending like a drunken sailor, and now he's gonna have to ask to borrow more money 2 months before the election? I think there are going to be a lot of republican voters staying at home come november...

[KathCO]

4. This cap affects fed employees retirements funds.

Some of the fed employees invest in government securities as part of their retirement package but when the debt limit is reached, the retirement fund can not purchase anymore securities and the gov borrows the retirement money (40 Billion) from the fed employees retirement funds and uses it like a piggy bank. Then they put it all back plus some when the cap is raised.

What did bush say about raiding employees retirement funds after the enron thing does not apply here I guess.

[UpInArms]

5. the current national debt

[fabius]

6. Perfect timing!

Great time to raise the national debt ceiling.