U.S. National Debt Tops Debt Limit (accounting, borrowing, interest)

[mikeharnen]

U.S. National Debt Tops Debt Limit - Political Hotsheet - CBS News

U.S. National Debt Tops Debt Limit

The latest calculation of the National Debt as posted by the Treasury Department has - at least numerically - exceeded the statutory Debt Limit approved by Congress last February as part of the Recovery Act stimulus bill.

The ceiling was set at $12.104 trillion dollars. The latest posting by Treasury shows the National Debt at nearly $12.135 trillion.

A senior Treasury official told CBS News that the department has some "extraordinary accounting tools" it can use to give the government breathing room in the range of $150-billion when the Debt exceeds the Debt Ceiling.

Were it not for those "tools," the U.S. Government would not have the statutory authority to borrow any more money. It might block issuance of Social Security checks and require a shutdown of some parts of the federal government.

Pending in Congress is a measure to increase the Debt Limit by $290 billion, which amounts to six more weeks of routine borrowing for the federal government. (The House just passed the increase, though the Senate has yet to act.)

Republicans and conservative Democrats blocked moves by House leaders to pass a $1.8 trillion dollar increase in the Debt Limit so the Democratic majority would not have to face the embarrassment of raising the Debt Limit yet again before next November's midterm elections.

The Debt Limit has been raised about a hundred times since 1940, when it was $49 billion - about five days worth of federal spending now.

The White House projects a record $1.5 trillion dollars deficit this year alone, and a 5-year deficit total of $4.97 trillion.

The Debt figure goes up and down on a daily basis based on government borrowing and revenue.

[zz4guy]

thankyou, Democrats.

[tallrick]

There is no debt ceiling, why does anyone even use this ridiculous term?

[lumbollo]

Consider this. In 1974 the debt limit was just $400B.

It's now going to $13T. This means that 97% of the entire US debt was run-up in just the last 35 years. As a nation we are in uncharted territory as compared to the vast majority of our 233 year history.

[Mt-7]

truly unbelievable.

[Chango]

Just wait folks, you haven't seen nothing yet!

[pghquest]

Originally Posted by tallrick

There is no debt ceiling, why does anyone even use this ridiculous term?

Yes there is.. A debt ceiling is the maximum amount of debt that the Treasury department is allowed to take on before the government has to shut down due to no operating money.

[pghquest]

Originally Posted by lumbollo

Consider this. In 1974 the debt limit was just $400B.

It's now going to $13T. This means that 97% of the entire US debt was run-up in just the last 35 years. As a nation we are in uncharted territory as compared to the vast majority of our 233 year history.

Interesting chart..
Note that 1998/99/00/01 when we had a "pretend" surplus, who ran Congress..
http://www.heritage.org/research/features/budgetChartbook/Images/federal-spending_01-580.jpg (broken link)

[HappyTexan]

Originally Posted by mikeharnen

I think he meant the debt "ceiling" doesn't matter, because they can lift it anytime they want.

Yes, this is their game and they can change the rules whenever they want.

[tallrick]

That is what I meant. That "ceiling" is no more than a hot air balloon. It raises at will so there is really no debt limit. The debt is following a natural logarithmic curve and when it approaches vertical inclination the next step is total collapse.