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Forum Post: US Adds $120 Billion In Debt Since Debt Ceiling Hike On Friday & $310 Billion More On Deck In Next Two Months /// Total Debt to GDP Over 100% even with the Latest Q4 GDP Data /// 100.4% & Rising Every Day /// $52,409 per US person

Posted 12 years ago on Feb. 1, 2012, 8:38 p.m. EST by MonetizingDiscontent (1257)
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US Adds $120 Billion In Debt Since Debt Ceiling Hike On Friday, $310 Billion More On Deck In Next Two Months

http://www.zerohedge.com/news/us-adds-120-billion-debt-debt-ceiling-hike-friday-310-billion-more-deck-next-two-months

-02/01/2012-

Remember when the US hiked its debt ceiling on Friday courtesy of a formulaic 52 affirmative votes in the Senate.... http://www.zerohedge.com/news/senate-vote-progress-increase-us-debt-ceiling-12-trillion ...giving the Treasury $1.2 trillion in dry debt powder to attempt to grow the economy one more time according to the algorithmic fantasies of voodoo priests with pieces of Ivy League parchment on their walls?

Well, two days later, the dry powder is less than $1.1 trillion.

In other words, in the past two days, total US debt increased by $120 billion, along the lines of our expectations, as the Treasury filled up all the G-fund cash it had pillaged to continue issuing debt throughout the month of January even though it was formally above the debt ceiling.

What is more concerning, is that as the chart below shows, the trendline of US debt since the beginning of 2011 is no longer a straight line, but has slowly transformed into a parabola, the very same word used as the root in such other infamous words as, for example, parabolic.

It gets worse: even according to the drastically, and very unrealistically, downward revised borrowing expectations of the Treasury released yesterday... http://www.treasury.gov/press-center/press-releases/Pages/tg1401.aspx ...the US will issue $444 billion in debt in this quarter.

Today's number means that in February and March alone Tim Geithner will raise another $310 billion, which will send total debt to $15.7 trillion as of March 31. What is the final debt ceiling? Just under $16.4 trillion. So the US will have $700 billion in debt issuance capacity for the 7 months leading into the presidential election (and 9 until the end of the year).

Now naturally, if the debt ceiling becomes a sticking point at the election, Obama's chances of reelection plunge. Which makes us wonder - will Republicans grasp that the paradox of defeating Obama is precisely in giving him a carte blanche on all the stimulus programs he wants?

Because if Congress approves another $200, 300 or even $400 billion in stimulus pork (the only thing better than one Solyndra? One thousand Solyndras!) the Treasury will drown in the need to raise hundreds of billions more, and will in fact hit the ceiling well in advance of the elections.

As for the stimulus projects themselves, they will crash and burn just like all centrally planned endeavors, and actually results in a far worse outcome than if they had never been attempted.

Because ironically, now that the entire world has passed the Rubicon, and unfortunately there really is no way of fixing anything, the only thing one can hope for is letting the status quo get on with doing what it does best, and leading the 100 year process of central planning to its sad and terminal conclusion, only after which can the "fresh start" reset occur. Ironically, the same thing is true with the farce that is the debt ceiling: the best way to finally get back to a fiscally prudent regime? Why go to town, of course.

Total Public Debt Outstanding:

(((SeeChart))) http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/01/Total%20Debt%20US%202.1_0.jpg

And, we almost forgot to add, as of today, total debt to GDP is once again well over 100% even with the latest Q4 GDP data, at 100.4% and rising every day.


Debt Ceiling 101, Rick Santelli Sounds Off:

(((CNBC News Video))) http://www.zerohedge.com/news/debt-ceiling-101-santelli-sounds

-01/27/2012-

In an effort to reach the angry mob, CNBC's Rick Santelli goes all Sesame Street on the numbers behind the US Debt Ceiling Rise.

Focusing for two minutes on what this practically means for every man, woman, child, and politician, the shouting Chicagoan points out that when the US breaches this new limit then the world's entire population will be on the hook for $2,346 each

(and $52,409 per US person).


Government Bailout To See $23 Billion Loss This Year: CBO

http://www.huffingtonpost.com/2012/01/31/government-bailout-loss_n_1245456.html?ref=business

-01/31/2012-

WASHINGTON -- A new report says the government's financial bailout program will see a $23 billion loss in the year that ended Sept. 30, compared with a $37 billion gain on taxpayers' investment the year before.

The Congressional Budget Office made the prediction in its report issued Tuesday on the federal budget. The expected loss is mainly due to the drop in the stock prices of General Motors and insurer American International Group, in which the government still holds big stakes.

AIG shares fell from around $40 to about $25 over the past year; GM shares fell from around $35 to $24.

Amid the 2008 financial crisis, Congress authorized spending $700 billion on the bailout. About $413 billion was lent. So far, the government has recovered around $318 billion.


CBO: Taxes Will ‘Shoot Up by More Than 30 Percent’ Over Next 2 Years

http://cnsnews.com/news/article/cbo-taxes-will-shoot-more-30-percent-over-next-2-years

-January 31, 2012-


5 Comments

5 Comments


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[-] 1 points by whatthefffff (8) 12 years ago

funny I did'nt get my check for $52,409 why don't you send it to me cause that's how much I've lost since Obama took office!!!!!

[-] 1 points by TheirLyingPropaganda (54) 12 years ago

Don't forget, Bush tax cuts for the One Per Centers plus his pretextual war in Iraq took Clinton's budget surplus and turned it into more than a TRILLION in national debt PLUS killing over 4,500 service members PLUS giving us the Great Recession.

[-] 1 points by MonetizingDiscontent (1257) 12 years ago

Yeah, Bush and Obama together - 4,500 casualties. Is it time to stop the insanity yet... Why does Obama continue and expand Bush Policies. There's no difference. It like the Office runs itself... Bush then & Obama now, both just talking heads, wrapped in blue or red, charting the 'will of an Office' rather than the will of Congress, elected by the people.

[-] 1 points by ohmygoodness (158) 12 years ago

PLUS killing and destroying the lives of hundreds of thousands of foreign civilians, just a "minor" detail.

[-] 1 points by MonetizingDiscontent (1257) 12 years ago

-Heard-