US to hit debt ceiling! Wooooo!

abudabit

New Wackbag
Oct 10, 2004
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#1
WASHINGTON - Treasury Secretary Henry Paulson told Congress on Wednesday that the federal government will hit the current debt ceiling on Oct. 1.

He urged quick action to increase the limit, saying it was essential to protect the "full faith and credit" of the country, especially at a time of financial market turmoil.

The current debt limit is $8.965 trillion. Unless Congress votes to raise that ceiling, the country would be unable to borrow more money to keep the government operating and to pay debt obligations coming due. The United States has never defaulted on a debt payment but the decision on whether to raise the debt ceiling often sparks a prolonged political battle in Congress.

In his letter to congressional leaders, Paulson said that according to data now available, the Treasury expects to hit the current debt ceiling on Oct. 1 — the first day of the new federal budget year. However, that projection does not take into account maneuvers the government often has to employ of withdrawing investments from certain trust funds to create room for extra borrowing until Congress finally approves a debt increase.

"The full faith and credit of the United States, to which we all remain committed, is a national asset and a cornerstone of the global financial system," Paulson said in his letter. "In light of current developments in financial markets, which would be exacerbated by uncertainty in the Treasuries market, I urge the Senate to pass the legislation reported by the Finance Committee to increase the debt limit as soon as possible."

The Senate Finance Committee earlier this month approved increasing the limit on the national debt to $9.82 trillion. That boost of $850 billion would be the fifth increase in the government's borrowing limit since President Bush took office in 2001.

The national debt is the total accumulation of annual budget deficits, which must be financed with borrowed money.

Democrats blame Bush's tax cuts and the war in Iraq for pushing the debt to record levels. Republicans defend the tax cuts, saying the deficit is now on a downward trajectory in part because of the economic stimulus provided by the tax cuts.

The House approved an increase in the debt limit in May when it adopted the annual congressional budget resolution, but the full Senate has yet to act to raise the limit.
Just die already mother fuckers.


Yep
 

Chino Kapone

Yo, whats wrong wit da beer we got?
Jun 10, 2005
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#2
we are the naggers of the world, except we can get approved for a loan.
 

MrAbovePar

En Taro Anthony
Mar 14, 2005
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Covington. La
#3
Blaming the couple trillion rise in the national debt on a couple billion in tax cuts is the essence of retarded.
 

abudabit

New Wackbag
Oct 10, 2004
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#4
The estimated population of the United States is 303,028,746 so each citizen's share of this debt is $29,710.00.

The National Debt has continued to increase an average of $1.40 billion per day since September 29, 2006!
A mere bag of shells.

Got a problem with it? Maybe this guy can help.
 

Fr. Dougal

Registered User
Feb 17, 2004
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#5
This is a dumb question... but who do we owe this debt to?

Banks? Other countries? Doesn't every country in the world owe us money too?

Can't we see where 2 debts are a push... and reorganize shit?
 

abudabit

New Wackbag
Oct 10, 2004
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#6
T-Bonds. Banks, investment institutions, individuals, etc. I don't know if foreign governments buy significant amounts of our T-Bonds or are even allowed to.


Update:

The Bureau of the Public Debt divides the national debt into two main categories: debt held by the public, and intragovernmental holdings (debt that the government has essentially lent to itself). Intragovernmental debt includes money for government trust funds, such as pension plans and the debt for social security. Overall, intragovernmental holdings account for over $3.79 trillion of the total debt at this time.

The remaining $5.04 trillion or so has been purchased by the public, including foreign entities. This largely comes from the issuance of U.S. Treasury securities. Nearly half ($2.4 trillion) is composed of Treasury notes (aka T-notes), while T-bills and T-bonds (including savings bonds) cover most of the remaining public portion of the debt. Bonds sold for infrastructure projects are also part of the national debt.

It is common for individual Americans and businesses to buy bonds and other securities, though much of the debt is now held overseas. At the end of 2006, foreign holdings of Treasury debt were $2.223 trillion, which was 44% of the total debt held by the public. Foreign central banks owned 64% of the Federal debt held by foreign residents; private investors owned nearly all the rest (figures are from the Analytical Perspectives of the 2006 U.S. Budget, page 257 and the U.S. Treasury website).

The country holding the most U.S. debt is Japan which held $612.3 billion at the end of the first quarter of 2007. The People's Republic of China holds the second most U.S. debt, ending the first quarter of 2007 with over $1.2 trillion in total foreign reserves, of which about $420.2 billion are U.S. Treasury securities.[5][6]
 

Chino Kapone

Yo, whats wrong wit da beer we got?
Jun 10, 2005
16,959
2,196
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#7
we owe china a TON of money. the government borrows $500 billion more than the taxes collected every year.
 

abudabit

New Wackbag
Oct 10, 2004
14,802
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#8
Yep, the only country that owns more US debt than China is Japan.

Here's another interesting factoid: We have about a $890 billion deficit. The highest in the world, of course. Next highest? Spain, at less than 1/10th of that!
 

Fr. Dougal

Registered User
Feb 17, 2004
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#9
When was the last time the US wasn't in debt?
 

FMDoug

Registered User
Nov 29, 2005
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#12
Ugh. If only the government would cut spending. Instead, they'll just raise our taxes. Again.
It's really hard for a gov't to cut spending once they start it. Once it starts a program, the people rely on that program, and it makes it that much harder to get rid of it. It does happen, but it puts the gov't in a difficult spot. The only way this gov't is going to shape up is to own up to the public, explain why they have to cut programs and raise the taxes for the upper middle/upper class for a little while. Once everything is stable then they can lower the taxes again.

That is my opinion
 

HummerTuesdays

Another girrrrl!!!
Apr 24, 2005
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On the road to ruin
#13
Freezing spending would be a good start. Oh, and cutting out the pork, too. But god forbid our elected officials stop handing out favors to people that don't need them.
 

Treat_Yourself

Registered User
Nov 17, 2006
548
0
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#14
Freezing spending would be a good start. Oh, and cutting out the pork, too. But god forbid our elected officials stop handing out favors to people that don't need them.
Who would vote for these incompetent, corrupt morons if they didn't buy votes with porkbarrel legislation?
 

abudabit

New Wackbag
Oct 10, 2004
14,802
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#15
2005 Spending (in millions):

050 National Defense 423,098
150 International Affairs 29,569
250 General Science, Space and Technology 24,459
270 Energy 1,883
300 Natural Resources and Environment 30,286
350 Agriculture 22,353
370 Commerce and Housing Credit 8,092
400 Transportation 69,494
450 Community and Regional Development 12,949
500 Education, Training, Employment and Social Services 91,817
550 Health 248,780
570 Medicare 293,574

600 Income Security 342,324
650 Social Security 516,457

700 Veterans Benefits and Services 65,444
750 Administration of Justice 40,781
800 General Government 19,392
900 Net Interest 177,909
 

TheDrip

I'm bi-winning.
Jan 9, 2006
5,051
3
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#16
Treasury Secretary Henry Paulson told Congress on Wednesday that the federal government will hit the current debt ceiling on Oct. 1.
Republicans defend the tax cuts, saying the deficit is now on a downward trajectory in part because of the economic stimulus provided by the tax cuts.

um...ok
 

abudabit

New Wackbag
Oct 10, 2004
14,802
0
0
#17
Republicans seem to have forgotten some time in the mid 90's that in order to do tax cuts you also have to do spending cuts.
 

TheDrip

I'm bi-winning.
Jan 9, 2006
5,051
3
228
#18
When was the last time the US wasn't in debt?
If I remember correctly from a US History class in college, it was in the mid 1830's, during the Jackson presidency.
 

Chino Kapone

Yo, whats wrong wit da beer we got?
Jun 10, 2005
16,959
2,196
608
#19
Tom Coburn, he is our only chance right now. Him and Obama, i will vote for Obama if he gets the nod.

"Bridge to Nowhere" ring a bell???? and all the personal spending our gov't does.


http://men.style.com/gq/features/landing?id=content_5318
READ this article from GQ, its pretty long, but it made me love Coburn. He wants to cut spending and is doing his best.
 

Your_Moms_Box

Free Shit / Socialism 2016
Dec 20, 2004
5,755
468
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Dover, Delaware
#21
The two are unrelated.
your a moron.... which is possibly unrelated to your post.


and they forgot when they embraced "reaganomics" aka a short term fix that amplifies the problem long term



I'm gonna go max out my credit cards, not pay them, and tell mastercard they just need to raise my limit
 

MAV

Registered User
Nov 23, 2005
10,578
1
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Denver, CO
#22
His name is Henry Paulson. His name is Henry Paulson.
His name is Henry Paulson. His name is Henry Paulson.
His name is Henry Paulson. His name is Henry Paulson.
His name is Henry Paulson. His name is Henry Paulson.
His name is Henry Paulson. His name is Henry Paulson.
His name is Henry Paulson. His name is Henry Paulson.
 

abudabit

New Wackbag
Oct 10, 2004
14,802
0
0
#23
You know what they say, you can't have your cake and eat it too. Huddla huddla.
 
Aug 10, 2007
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#24
I blame Iran.

(Obsessively padding post count so I can get more e-respect)