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Forum Post: Obama seeks $1,200,000,000,000.00 increase in debt ceiling.

Posted 2 years ago on Dec. 28, 2011, 10:57 a.m. EST by dantes443322 (148)
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11 Comments

11 Comments


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[-] 2 points by MonetizingDiscontent (1257) 2 years ago

Great Post, dantes443322! Good to see others are keeping these issues up front, and center.


:::::::::::::::::::::::::::America Maxes Out Its Credit Card Again:::::::::::::::::::::::::::

::::::Treasury To Raise Debt Limit By Another $1.2 Trillion On Dec 30, 2011::::::

http://www.zerohedge.com/news/us-hits-credit-ceiling-again-treasury-raise-debt-limit-another-12-trillion-december-30

-12/27/2011-

You didn't think US consumer confidence could be bought for free now did you?

  • U.S. TREASURY SAYS DEBT LIMIT TO BE RAISED BY $1.2 TRILLION

  • U.S. DEBT TO BE $100 BLN WITHIN LIMIT ON DEC. 30, TREASURY SAYS

  • STEPS FOR INCREASING DEBT LIMIT UNDER 2011 BUDGET CONTROL ACT

And the piece de resistance that 100% debt to GDP brings:

  • OBAMA ON DEC. 30 LIKELY TO ASK CONGRESS TO RAISE DEBT LIMIT

Just as we thought the circus was over if only for a few weeks. Also, this means that in a few days, the US debt ceiling will be raised from $15.194 trillion to $16.394 trillion.

As a reminder, US GDP was just revised down to $15.176 trillion.


::::::::It's Official: US Debt-To-GDP Passes 100%::::::::

::::::::::::::$1 5, 1 3 1, 9 7 9, 2 6 4, 2 8 8. 8 0::::::::::::::

http://www.zerohedge.com/news/its-official-us-debtgdp-passes-100

--12/21/2011--

With precisely one year left for the world and all of its inhabitants, at least according to the Mayans, not to mention on the day of the Winter Solstice, it is only fitting that US debt, net of all settlements for all already completed bond auctions, is now at precisely $15,182,756,264,288.80.

Why is this relevant? Because the latest annualized US GDP, according to the BEA, was $15,180,900,000.00. Which means that, as of today, total US debt to GDP is 100.012%.

Congratulations America: you are now in the triple digit "debt to GDP" club!

(naturally, this is using purely "on the books" data. If one adds the NPV of all US liabilities, and adjusts GDP for such things as today's housing contraction, then the magical triple digit threshold was breached long, long ago).

And here is the breakdown for the forensically inclined ones:

I. Total debt as of December 20: $15,131,979,264,288.80

II. Net cash settlement of all completed auctions: $50,777,000,000.00

III. Total GDP: $15,180,900,000,000.00

Total Debt/GDP = $15,182,756,264,288.80 / $15,180,900,000,000.00 = 100.012%

Relation of Gross Domestic Product, Gross National Product, & National Income: http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2011/12/GDP%20Q3.jpg

...In other words, US debt/GDP is now 99.5%...

the highest it has been in the post WW2 period, and rapidly rising...


:::::::::::::::::$15,OOO,OOO,OOO,OOO:::::::::::::::::

::::It's Official: Total US Debt Passes $15 Trillion::::

--11/16/2011--

http://www.zerohedge.com/news/its-official-total-us-debt-passes-15-trillion

http://www.treasurydirect.gov/NP/BPDLogin?application=np

(Tyler Durden) Too sad for commentary, but here is some math: total US debt has increased by 41.5%, or $4.4 trillion, from $10,626,877,048,913 on January 20, to $15,033,607,255,920, under Obama as president.


[-] 2 points by dantes443322 (148) 2 years ago

Thanks. But I didn't do nearly the leg work you did. Great post and links.

[-] 1 points by beautifulworld (20522) 2 years ago

What would be the alternative? The U.S. stops paying it's debts throwing the world into another Global Financial Crisis. We already have to pay a higher interest rate on our debts now thanks to the Tea Party shenanigans that led to the S&P downgrade in August. This is a cost to us all, like a tax.

Go ahead and blame Obama. Reagan increased the debt ceiling 18 times and George Bush, 7 times (some sources say 9). In fact, it's been increased 74 times since 1962. And, these increases have always been bipartisan.

While it is certainly not what we want to be doing, we have no choice except to throw ourselves into a financial crisis. We need to start growing this economy again to grow ourselves out of this debt.

[-] 1 points by Joeboy32 (72) 2 years ago

This doesn't surprise me at all. Since, "paper" money doesn't work on value like "gold or silver" and when you depend on this type of currency to circulate and sustain an economy, you need "debt" to keep the system going.

The reality is "debt" is necessary (for now) to keep our country running, but it's basic common sense that you can't work with debt by creating "more debt".

and this isn't Obama's decision, he's a puppet like the rest. This is a decision by the very people who need our country to remain in debt in the first place. and these same people run Wall Street and the U.S. Government.

That's why this protest exist and one of the many reasons it will remain strong. As long as these people remain hidden and making unfit decisions with our country, will always have problems. and they will get worse.

[Removed]

[-] 1 points by MonetizingDiscontent (1257) 2 years ago

Remarks by Governor Ben S. Bernanke Before the National Economists Club, Washington, D.C.

::::::::::::Deflation: Making Sure "It" Doesn't Happen Here::::::::::::

http://www.federalreserve.gov/boarddocs/speeches/2002/20021121/default.htm

-November 21, 2002-

In this 2002 speech by then Federal Reserve Board Governor Ben Bernanke is saying that If he ever faced another Great Depression, he would do 5 things... and he has done everything he said he would do so far, now that he is at the helm! Accept for one final thing....

  • Interest rates to zero (CHECK)
  • Buy securities to expand the feds balance sheet (CHECK)
  • Increase the money supply (CHECK)
  • Buy the countries debt, QE1 QE2 etc etc... (CHECK)

And the only thing left that Ben promised to do, that he hasn't tried yet...

  • Devalue the Dollar by 40%

(2002) "Although a policy of intervening to affect the exchange value of the dollar is nowhere on the horizon today, it's worth noting that there have been times when exchange rate policy has been an effective weapon against deflation. A striking example from U.S. history is Franklin Roosevelt's 40 percent devaluation of the dollar against gold in 1933-34, enforced by a program of gold purchases and domestic money creation. The devaluation and the rapid increase in money supply it permitted ended the U.S. deflation remarkably quickly. Indeed, consumer price inflation in the United States, year on year, went from -10.3 percent in 1932 to -5.1 percent in 1933 to 3.4 percent in 1934.17 The economy grew strongly, and by the way, 1934 was one of the best years of the century for the stock market. If nothing else, the episode illustrates that monetary actions can have powerful effects on the economy, even when the nominal interest rate is at or near zero, as was the case at the time of Roosevelt's devaluation."

Folks should really take some time to read this speech.

[-] 0 points by NewEnglandPatriot (916) from Dartmouth, MA 2 years ago

It will devalue with QE3, and another spike in food/energy costs. More paper currency in circulatiion as people run on the banks, this has already started and if I were you, if you get paid take it out.

Keep just enough in there to clear checks, etc. I only use a local credit union also, no more banks..

[-] 0 points by NewEnglandPatriot (916) from Dartmouth, MA 2 years ago

I have seen this post, call up the talk shows - it is a good venting outlet, and you get on air presence! Stop wasting out forum space trolls! (not u modelist)

[-] 0 points by hchc (3297) from Tampa, FL 2 years ago

Fuck it, why not? All our kids are going to be screwed by this wreckless spending and wars, so we may as well enjoy it while it lasts, right?

What an economic train wreck we are, from the top .01% to the bottom of the 99%.

[-] 0 points by NewEnglandPatriot (916) from Dartmouth, MA 2 years ago

Not totally screwed , just no freedoms left and no choice of careers - forced labor, very little personal time, no freedom of thought, expression, creativity.