U.S. Treasury near debt ceiling limit

[UpInArms]

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=6409705

WASHINGTON, Oct 4 (Reuters) - The U.S. Treasury Department will hit its legally authorized ceiling for borrowing early this month and will urge Congress to raise it, a Treasury spokesman said on Monday.

But with every indication that the question of debt is embroiled with rapidly approaching presidential elections -- in which the Bush administration's handling of the economy is an issue -- there was little chance that lawmakers would jump to lift the limit.

"The time-frame is October, early October. We'll obviously notify Congress at the appropriate time," Assistant Treasury Secretary Rob Nichols told reporters.

"Right before we hit it, we will notify Congress. That forecast is made on a day-to-day basis," Nichols added.

As of Friday, the government was within about $20 billion of hitting the debt ceiling that is set at $7.384 trillion.

...more...


The estimated population of the United States is 294,447,123
so each citizen's share of this debt is $25,184.43.

The National Debt has continued to increase an average of
$1.71 billion per day since September 30, 2003

[MatrixEscape]

1. Woah!

That's SEVEN stacks of $1000 bills, each reaching into the sky for 63 miles + almost a half a stack more at about 30 miles ... and counting.

[DulceDecorum]

4. And if you blew a cool million dollars per day

starting from when Jesus was born,
you would be NOWHERE NEAR having spent all that money.

[DulceDecorum]

2. And this money is owed to

other nations.
Mostly third world nations.
That is why they are so broke.

[AndyP]

3. whew! Good thing the economy is recovering. Right!?!?!?

no text

[Chicago Democrat]

5. Blow through the old Reagan Bush era ceilings....Basically means

They have eaten up all the savings of the Clinton era and Grahamm-Rudmand

[bloom]

6. I think this would be a good issue for Kerry - even with the "war"

I think it brought in a lot of moderates for Clinton.

[54anickel]

7. Uh oh, they are willing to tap "special funds"

snip>

Nichols said Treasury could avoid piercing the debt ceiling, an action that would effectively amount to a default on America's ability to manage its debts, until about mid-November through extraordinary measures such as tapping a Treasury fund that normally is intended for purposes like currency stabilization.

snip>

"That letter is under review and we will respond soon," Nichols said, but added that "we have been calling on Congress to act for months." Treasury Secretary Snow is crisscrossing the country ahead of the election to claim credit for the Bush administration's tax cuts as having provided the "oxygen" to get the economy growing after a brief 2001 recession.

While Republicans and Democrats regularly fence over hitting the debt limit, it is unthinkable that they would permit a default to occur on the government's debt. Treasury has used accounting maneuvers in the past to raise money outside the debt limit and would do so again if necessary.

There has never been a default in the government's debt during the country's 228-year history.

There's a first time for everything:evilgrin:

[Steelangel]

8. And Bush claimed that we have 'strong ecomony'

What a jackass!

I hope Kerry will use that report against Bush in third debate if Bush didn't wimp out and cancel the third debate!

[Amigust]

9. GOPers, good fiscal conservatives that they are, know

how to fix this little problem -- raise the limit yet once again. How many raises will this make it? Four, five, six?

[Kimber Scott]

10. Bush's whole economic plan is to starve the government.

Another thing he's been successful at. And all this time, I thought the guy was a complete failure.

We can now look forward to our Social Security payments going to the likes of Ken Lay. He'll invest our funds for us, you know. We'll own them. It will be a utopian ownership society... until the bastards steal our money.

[Bluebear]

11. Chimp recommends STAY THE COURSE!

[On the Road]

12. Congress Should NOT Increase the Debt Limit

Make a public issue out of it. Make the administration deal with it before the voters and explain his plan. There are enough fiscally conservative Republicans in Congress to give this idea a fighting chance.

[Emboldened Chimp]

13. Remember, this is the THIRD time under Bush...

He's spending our money like a drunken frat boy on a coke binge...

[Supersedeas]

14. and the media will broadcast and publish what in response to this pattern?

[Media_Lies_Daily]

15. I think it's actually closer to the FIFTH.

[htuttle]

16. But we CAN'T be out of money!?!

We still have checks left in our checkbook!

[gasperc]

17. I wonder how he expects to pay for these programs

but that's for another debate I guess??

[Ravenseye]

18. They want to starve the beast

They don't have the balls to actually cut funding for programs people hate without there being an emergency. They put tax plans in place to make things horrible, then claim that we need to reduce spending...if the democrats say just raise taxes, or eliminate their stupid reductions, then the democrats just want to raise your taxes and take your money. Don't you know how to spend it better?

Then with that bullshit underway, they start slashing really important things, like social security, medicare, and more, anything but defense.

Next thing you know America is a third world country with an unimaginably rich elite, and masses of poor, without any kind of modern social services.

Yay!

*vomit*

[info being]

19. National Debt = Upward Flow of Capital

Every American tax-payer should be appalled by this. High budget deficits are no mistake. To the contrary, paying back a budget deficit requires the taxation of the middle class and the funneling of that money to the rich on a systematic and risk-free basis. In paying back the national debt, the American people are being asked to pay high taxes and are seeing <em>nothing</em> in return.

When a government operates on a deficit, it raises the money it needs not directly through taxes, but by selling bonds (US Treasury Bills). Those bonds are purchased by wealthy investors around the world who, of course, are rewarded with interest on their money (returns). As the deficit climbs, more bonds are sold and the "investment opportunity" expands. This is an attractive prospect for investors because, as opposed to their other investment options, US Treasury Bonds are considered relatively risk-free. In other words, the US legal system forces the American tax-payer to repay the loan. The IRS essentially "secures" the investment.

Today, each American citizen's share of the debt is $25,184.43. If the debt is ever to be repaid, that means $25,184.43 per person which does nothing to help us...no schools, no roads, nothing. That's a big chunk of money however you look at it, and as the debt continues to grow, the perceived risk of a US Treasury Bill goes up. As with any investment, as the perceived risk increases, the expected return also increases. In other words, it will keep getting more expensive to fund our government's reckless spending.

When one thinks about the fact that this debt is being created to fund military exploits (using taxpayer money to secure oil-fields for corporations and buy all kinds of weapons and services from corporations), it becomes quite clear that what we are witnessing is a vicious cycle of funnel money from hard-working American taxpayers to the rich. Any true Conservative would be outraged. Any thinking person should be outraged.

When political policies enrich the rich at the expense of the poor, those policies are no accident. Let's remember that it is the rich who have the greatest influence over our politicians.