USA Needs New Debt Limit...Again.

[Atheist God]

Washington Post

Treasury Secretary Henry Paulson says that the US will reach it's debt ceiling on Oct first which is now 8.965 trillion dollars.

WASHINGTON -- Treasury Secretary Henry Paulson told Congress on Wednesday the government will hit the current debt ceiling on Oct. 1. He sought 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 limit is $8.965 trillion. Unless Congress votes to raise it, 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 means a prolonged battle in Congress.

[Guardsman Bass]

"The economic growth encouraged by the president's tax cuts is now producing sharply increased federal tax receipts," Cheney wrote.

And Supply Side Economics rears its ugly head . . . why am I surprised? We're talking about an administration which apparently didn't give much of a sh** about whether or not they were deficit spending their way towards economic problems. In any case, hopefully this will give the Democrats something to beat the Republicans around the bush with, and get some bloody restraint on spending.

Of course, if the value of the dollar collapses (as it very well might), then suddenly we can deficit spend even more, since the value of the money will have dropped! Yippee!

[leadbelly]

What about fixed costs and non-discretionary spending? How much is it a factor in our national debt? Social Security, anyone?

[Guardsman Bass]

What about fixed costs and non-discretionary spending? How much is it a factor in our national debt? Social Security, anyone?

I imagine that it indirectly affects the US's creditworthiness, although keep in mind that I don't have anything more than a layman's understanding.

[questionmark]

What about fixed costs and non-discretionary spending? How much is it a factor in our national debt? Social Security, anyone?

Would make a gigantic post, but you can check here to start with:

http://www.treasurydirect.gov/NP/BPDLogin?application=np

http://www.federalbudget.com/

[BrucePrime]

Sounds like it is time for the debt-ceiling to be lowered...and start paying it off. This is ridiculous.

[Guardsman Bass]

Sounds like it is time for the debt-ceiling to be lowered...and start paying it off. This is ridiculous.

There's pretty much no chance of that happening, short of a tax hike, the destruction of a vital service, or the end of the war in Iraq. They're stuck in a deficit spending trip for now; all they can hope is that it doesn't come back to bite us in the ass in terms of higher interest rates.

[Atheist God]

Sounds like it is time for the debt-ceiling to be lowered...and start paying it off. This is ridiculous.

Well a 10 billion dollar a week war and the exporting of vital industries in the US over seas will prevent this from happening. Over half of the total yearly budget the US has goes to the military and this does not include the war. Perhaps one way of spending less would be to shrink military spending and start putting a little more money back into infrastructure to rebuild industries etc.

This debt is clearly the result of irresponsible economic policy, corruption and over spending. However the main reason for it going up as high as what it has over the last few years is in fact the war in Iraq and the private contracting out of vital military services.

[Avinash_Tyagi]

What about fixed costs and non-discretionary spending? How much is it a factor in our national debt? Social Security, anyone?

This doesn't include Social security or other entitlements

[ninjadude]

There's pretty much no chance of that happening, short of a tax hike, the destruction of a vital service, or the end of the war in Iraq. They're stuck in a deficit spending trip for now; all they can hope is that it doesn't come back to bite us in the ass in terms of higher interest rates.

OH NOES! don't say tax hike. The neocons will be all over it. Somehow in their twisted C- economic policy (bushes Econ 101 grades) we can push billions down a hole in Iraq and never have to pay it back!! They'll say those liberals want to raise your taxes so they can spend more! When in reality - The Republicans have spent more than all previous congresses.