New Debt Limit To Be Reached This Month (Update)
But don’t be concerned, because, you know, they have everything under control in Washington:
The US debt is on track to hit a congressionally proposed debt ceiling of 14.3 trillion dollars by the end of February, the Treasury said Wednesday, a day ahead of a key vote to raise it to that level.
“Based on current projections, Treasury expects to reach the debt ceiling as early as the end of February. However, the government’s cash flows are volatile, making it difficult to forecast a precise date,” the Treasury said in a statement.
This isn’t the old debt ceiling of $12.374 trillion. Nope, this is the new one that the Senate approved (and still awaits House approval) that adds $1.9 trillion to the ceiling. By the end of February they’ll apparently have spent another $2 trillion or so. In case you’re wondering, that proposed debt ceiling finally puts our total debt at 100+% of our GDP. We finally owe more than we make.
And yes, both political parties have added to this – but none like the present one.
Guess what – with the “jobs bill” in the wings, they’re going to want to raise that ceiling again since we’re borrowing $0.42 cents for every dollar spent by government.
And they wonder why there are tea parties and the natives seem restless, angry and “ungovernable”.
UPDATE: Apparently AFP got the story wrong. AP says:
The Treasury Department said 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.
Still not good at all, but not at all what the AFP claimed. So to quote SNL’s Emily Litella – “nevermind” -well, until they finally do spend to the new limit which most likely won’t be that far in the future (see upcoming “jobs bill” or “health care reform” if they manage to sneak that through – your choice).
HT: Doug Mataconis for the heads up.