Thread: Here We Go Again: US Breachs Transitory Debt Ceiling Monday

Here We Go Again: US To Breach "Transitory" Debt Ceiling On Monday

Submitted by Tyler Durden
09/08/2011 17:45 -0400
Comments: 103 / Reads: 11,818

It is hard to believe that the last time the US had breached its debt ceiling was a whopping one month ago. Courtesy of much toil, tears and televized theater (not to mention fake compromises), the Obama administration managed to get an accordion-feature extension of the debt-ceiling-cum-target, whereby it is currently at $14.694 trillion, and can be extended in $500 billion increments, for a total of $1.5 trillion provided congress and senate do not vote down such an expansion. The reason we bring this up is because as the data below demonstrates, the US Treasury will breach its brand new debt ceiling... on Monday.

That's right: as of yesterday, total US debt was $14.717 trillion (obviously an all time record, and every day closer to parity with US GDP), while debt subject to the ceiling was $16.772 trillion, or just $22 billion below the total before someone has to go ahead and commence the whole debt ceiling fiasco from scratch. And since as the Treasury is auctioning off another $32 billion in 3 Year bonds on Monday, http://www.treasurydirect.gov/instit/an ... 0908_5.pdf that process better scramble or else all that rhetoric about Social Security being nothing but a plundered ponzi scheme will be proven true yet again. And while we see flashing headlines that Obama's proposal is now set to be a bullshit $450 billion (bullshit because republican will absolutely not go ahead with it), we are positive that not one word will be uttered to inform the public that as of this moment Harry Reed has already started the process of the next $500 billion debt ceiling expansion, http://www.nasdaq.com/aspx/stock-market ... ling-boost one which will bring total US debt-to-GDP to over 100% for the first time since the post-WW2 period.

Most recent total debt breakdown:



And next week's full debt auction schedule.



The only saving grace is that the settlement of these auctions will take a few days, so the latest spectacle may take at least 2-3 days before it has to be voted on and by then everyone will have long forgotten that the US most certainly lives Keynesian paycheck (aka bond auction) to paycheck.

http://www.zerohedge.com/news/here-we-g ... ing-monday

While Texas Burns and North Eastern U.S. Floods (by Design)... Senate Steals Another Half Trillion Dollars!


Submitted by SadInAmerica on Sun, 09/11/2011 - 2:46pm.
The U.S. Senate, in an unusual procedure, cleared the way Thursday for the U.S. to lift its borrowing authority by $500 billion to $15.19 trillion, enough to keep the support federal government borrowing through late January or early February.

The action came under an unusual legislative procedure spelled out under the August agreement to raise the U.S. debt ceiling and avoid a U.S. credit default. In a 52-45 vote, the Senate blocked an attempt by Republicans to slow down the process that will result in the $500 billion debt-ceiling increase.

The increase stems from a deal between Congress and the White House, finalized last month, that spells out how the borrowing limit would be increased by $500 billion.

Under the process, lawmakers in both the House and Senate must vote on a resolution of disapproval against the increase in the borrowing limit. President Barack Obama would then have to veto the resolution of disapproval, and Congress would then vote to try and override that veto.

The complicated procedure, designed by Senate Minority Leader Mitch McConnell (R., Ky.), would allow an increase of the borrowing limit while allowing most Republicans to vote against such an increase.

There was a twist in this scenario Thursday evening, however. Democrats held firm, rejecting the resolution of disapproval, thereby speeding the process and increasing the borrowing limit immediately.

Only Sen. Ben Nelson (D., Neb.) broke from his party to vote with the Republicans in trying to move forward with the measure.

The next increase in the borrowing limit, likely in the first quarter of next year, will be dependent on the ability of a panel of 12 lawmakers to reach a deal that cuts at least $1.2 trillion from federal budget deficits over the next decade.

Outsource - September 11, 2011 - posted at TheTruthIsNow


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