Treasury expects to hit debt limit in February

[The Northerner]

Source: Associated Press

WASHINGTON – The Treasury Department said on Wednesday it expects to hit the government's debt ceiling by the end of February, putting pressure on Congress to raise the limit from its current level of $12.4 trillion.

Treasury said it is working closely with Congress to raise the ceiling. The Senate has approved legislation to increase it by $1.9 trillion to $14.3 trillion. A ceiling that high would equal about $45,000 for every American. The House is expected to vote on the increase on Thursday.

Congress approved a smaller increase of $290 billion in late December, allowing the government to borrow for about two more months.

Matthew Rutherford, Deputy Assistant Secretary for Federal Finance, said a $1.9 trillion rise would enable the government to continue borrowing into 2011.

The Treasury's announcement comes after the Obama administration on Monday released a budget that projects this year's deficit will reach $1.56 trillion, an all-time high. That's equivalent to 10.6 percent of the economy, the highest proportion since World War II.

Read more: http://news.yahoo.com/s/ap/20100203/ap_on_bi_go_ec_fi/us_treasury_borrowing

[endless october]

1. we obviously can't afford war right now or the WOD.

bring the troops home.

[defendandprotect]

2. STOP these imperialistic wars of aggression . .. bankrupting our Treasury..destroying democracy--!!

[bossy22]

3. that would help

but don't forget its going to be entitlement programs that kill us in the long run. Remember the war is only costing about $200 billion a year- out of a 1+ trillion dollar debt.

[defendandprotect]

5. And much of the Social Security surplus over decades has financed this crap . ..!!

I think the surplus now is over $150 billion every year --

and that money is raised on the backs of the poor and middle class because

the wealthy are protected by the ceiling on FICA. Not sure how high that is now?

Think last I heard it was a bit over $100,000?

SS was never intended to run a surplus -- it's there to hide the huge war spending.

And as a slush fund -- Bush used it for tax cuts for rich and war in Iraq!

[dixiegrrrrl]

6. When you say entitlement programs, which programs are you referring to?

From the Soc. Sec. Trustees Report:
The annual cost of Social Security benefits represented 4.4 percent of GDP in 2008 and is projected to increase to 6.2 percent of GDP in 2034, and then decline to about 5.8 percent of GDP by 2050 and remain at about that level.

Medicare's annual costs were 3.2 percent of Gross Domestic Product (GDP) in 2008, or about three quarters of Social Security's; they are projected to surpass Social Security expenditures in 2028 and reach 11.4 percent of GDP in 2083.
( assuming health care and fraud costs are not reduced)


On Oct. 28, President Barack Obama signed the 2010 Defense Authorization Act, the largest military budget in U.S. history.
It is not only the world’s largest military budget but is larger than the military expenditures of the whole rest of the world combined.
The 2010 military budget —which doesn’t even cover many war-related expenditures—is listed as
$680 billion.
In 2009 it was $651 billion and in 2000 was $280 billion. It has more than doubled in 10 years.

or, if one prefers charts

[mbperrin]

4. Why have a cap at all if you're just going to raise it every time you

hit it?

Yes, closing out two illegal wars and several hundred bases around the world would save some large bucks, but apparently simply not treating sick people is the best way to handle it.

[SpiralHawk]

7. A trillion here, a trillion there...

pretty soon you are talking National Poor Farm.

Thanks a pantload to the Republicon 'conservatives' who have Led The Way on this, as they tossed America's fiscal sanity into the crapper for decades to come with their 8 agonizing years of Republicon FAIL.