US borrowing tops 100% of GDP: Treasury - Brace for Impact. OMFG!

[Soul Crusher]

US borrowing tops 100% of GDP: Treasury
(AFP) – 1 hour ago 
http://www.google.com/hostednews/afp/article/ALeqM5jsIJrjNbFnHfTteRFzNM3vLqKiug?docId=CNG.1990c2943612788ba4bed492da11c97b.891





WASHINGTON — US debt shot up $238 billion to reach 100 percent of gross domestic project after the government's debt ceiling was lifted, Treasury figures showed Wednesday.

Treasury borrowing jumped Tuesday, the data showed, immediately after President Barack Obama signed into law an increase in the debt ceiling as the country's spending commitments reached a breaking point and it threatened to default on its debt.

The new borrowing took total public debt to $14.58 trillion, over end-2010 GDP of $14.53 trillion, and putting it in a league with highly indebted countries like Italy and Belgium.

Public debt subject to the official debt limit -- a slightly tighter definition -- was $14.53 trillion as of the end of Tuesday, rising from the previous official cap of $14.29 trillion a day earlier.

Treasury had used extraordinary measures to hold under the $14.29 trillion cap since reaching it on May 16, while politicians battled over it and over addressing the country's bloating deficit.

The official limit was hiked $400 billion on Tuesday and will be increased in stages over the next 18 months.

The last time US debt topped the size of its annual economy was in 1947 just after World War II. By 1981 it had fallen to 32.5 percent.


Ratings agencies have warned the country to reduce its debt-to-GDP ratio quickly or facing losing its coveted AAA debt rating.

Moody's said Tuesday that the government needed to stabilize the ratio at 73 percent by 2015 "to ensure that the long-run fiscal trajectory remains compatible with a AAA rating."

Copyright © 2011 AFP. All rights reserved. More »


________________________ ________________________ __

OMFG 


This is really unbelievable.   

[Soul Crusher]

Bump for team kenya.

[Fury]

Don't worry, we can spend our way out of this. Trust in the Messiah and give him more of your money!

[Bindare_Dundat]

Look, the fact is Bernanke as well as a few other Fed heads have flat out told us we are headed for downright disaster-ville. I'll try to find the quotes later, so if that isn't enough to prepare you then you may as well get us to standing in a soup line now.

[Soul Crusher]

And people call me a fearmonger. Whatever. What more do need.

[Soul Crusher]

Come garebear chad and others, defend this.

[Fury]

Federal Government Borrows $239 Billion On Tuesday, U.S. Debt Has Largest One-Day Bump In History

(The Washington Times) — U.S. debt shot up $239 billion on Tuesday — the largest one-day bump in history — as the government flexed the new borrowing room it earned in this week’s debt-limit increase deal.

The debt subject to the statutory limit shot way past the old cap of $14.294 trillion to hit $14.532 trillion on Tuesday, according to the latest the Treasury Department figures, which are released on the next business day.

That increase puts the government already remarkably close to the new debt limit of $14.694, which means one day’s new borrowing ate up 60 percent of the $400 billion in space Congress granted the president this week.

Debt numbers go up and down regularly, depending on what the Treasury Department is redeeming or issuing on any day, but have been on a steep upward trend for the past decade as spending has ballooned and revenues have fluctuated.

For the past 2 ½ months, though, the number essentially was frozen as the government was poised to reach the borrowing limit set by law. The Treasury Department used extraordinary means to stall, but was about to run out of room on Tuesday.

With little time to spare, Congress and the White House managed to cobble together a deal to grant new borrowing authority: an initial increase of $400 billion, coupled with future increases.

The deal called for caps on future spending and granted the president the power to win an initial $400 billion debt increase, with another $500 billion coming later if Congress doesn’t manage to block it. Yet another increase is contingent on the committee’s recommendations.

The previous one-day record debt increase was $186 billion, set on June 30, 2009.

http://www.washingtontimes.com/news/2011/aug/3/us-eats-most-debt-limit-one-day/?page=all



Don't worry, we can spend our way to prosperity. Barack Obama said so!

[Soul Crusher]

And yet the dildos attack me for my hatred of this disaster in office.    We are now Greece. 

[Bindare_Dundat]

Greenspan 2010    “The federal government is currently saddled with commitments for the next three decades that it will be unable to meet in real terms,” Greenspan said. The “very severity of the pending crisis and growing analogies to Greece set the stage for a serious response.”


Former Federal Reserve Chairman Alan Greenspan said the U.S. may soon face higher borrowing costs on its swelling debt and called for a “tectonic shift” in fiscal policy to contain borrowing.




UK Telegraph       But the really interesting stuff is the detail, and what leaps out again and again is how much of a hill the US has to climb. Exhibit a is the fact that under the Obama administration’s current fiscal plans, the national debt in the US (on a gross basis) will climb to above 100pc of GDP by 2015 – a far steeper increase than almost any other country.



Ben Bernanke, 2010     Mr. Bernanke, the Federal Reserve chairman, warned on Wednesday that “the federal budget appears to be on an unsustainable path,”

... he offered warnings about the fiscal perils of an aging population and the potential threat of soaring long-term interest rates.

...."economic recovery would most likely be slow and painful for many Americans"




State Plans to Borrow Money From Pension Fund in Order to Pay Back Money Owed to Same Pension Fund
http://nymag.com/daily/intel/2010/06/state_plans_to_borrow_money_fr.html


California's $500-billion pension time bomb
http://articles.latimes.com/2010/apr/06/opinion/la-oe-crane6-2010apr06


Whats improved since 2010? Nothing.

[Soul Crusher]

The ponzi scheme is about to blow. 

[Fury]

The ponzi scheme is about to blow. 

Bankster Ben knows this. He's just doing Obama's bidding by keeping the stock market propped up. Even the dumbest American knows that 500 point drops = bad news.

[Soul Crusher]

The crazy thing is how low interest rates are.   They fo up even a small amount, as historically they should, and we are really in a death spiral.

[Soul Crusher]

Gross US Debt Surges By $240 Billion Overnight, US Debt To GDP Hits Post World War II High 97.2%
zero hedge ^ | 8/3/11 | Tyler Durden
Posted on August 3, 2011 6:39:37 PM EDT by Nachum

Two things happened when the Senate voted in the "Bipartisan" plan into law yesterday: i) deferred debt on the Treasury's balance sheet finally caught up with reality, and ii) as a result of i) America's Debt/GDP just hit a post World War 2 High of 97.2%. Becasue as the Daily Treasury Statement as of last night indicates, total US marketable debt surged by $124.6 billion, while debt in intragovernmental holdings (Social Security, Government Retirement Accounts, etc), soared by $113.6 billion, for a combined one day change of $238.2 billion, the single biggest one day increase of US debt in history. Obviously this is a result of massive underfunding and disinvestment in the various government retirement accounts as well as due to deferred debt which was to be booked since the debt was breached on May 16. However, how marketable debt could increase by a whopping $125 billion without any actual auction settlement is slightly confusing. Just as confusing is that according to the endnote in the debt subject to limit calculation, the new ceiling is not the $900 billion increase as requested, but only $400 billion more than the $14.294 billion previous, or at $14.694 billion. We hope this is some Treasury type or misunderstanding as this new ceiling will be breached in a month. And the last thing we need is this whole debt ceiling drama back again in September. One thing there is no confusion about, however, is that based on the latest gross debt number of $14.581 trillion, and the just reported Q2 GDP of $15.003 billion, total US debt to GDP is now a post World War II high of 97.2% (and that excludes the GSE off balance sheet debt).

(Excerpt) Read more at zerohedge.com ...

[Bindare_Dundat]

A couple more mega McDonalds hirings and we are on a serious road to recovery.

[Emmortal]

A couple more mega McDonalds hirings and we are on a serious road to recovery.

I've actually never seen a McDonalds shut down before.  I'm sure it's happened, but they just keep on going.

[Soul Crusher]

Gov't will borrow $72B in debt auctions next week
http://finance.yahoo.com/news/Govt-will-borrow-72B-in-debt-apf-3907839998.html



 
WASHINGTON (AP) -- The government will borrow $72 billion in debt auctions next week now that Congress has raised the nation's borrowing limit.

The Treasury Department says it will sell 3-year notes, 10-year notes and 30-year bonds to raise the money. About one-third will go to repay debts that are due on Aug. 15.

President Barack Obama cleared the way for the auction on Tuesday when he signed into a law a bill that raises the debt ceiling and promises more than $2 trillion in cuts to government spending over the next decade.

The U.S. government currently borrows 40 cents of every dollar that it spends.

An initial debt ceiling increase of $400 billion took effect immediately on Tuesday. That will allow the nation to borrow what it needs through September, the Treasury Department estimates.

The next $500 billion boost will occur after lawmakers vote on resolutions stating they approve of the increase. The votes are mainly ceremonial, because the president can veto the resolutions.

The final $1.5 trillion increase will occur after a bipartisan committee of lawmakers from both chambers identifies how the government can cut $1.5 trillion from the federal deficit over the next ten years. If the committee's fails to agree on the cuts, the borrowing limit will rise by between $1.2 trillion and $1.5 trillion.

Treasury's advisory group of private bond sellers agreed that credit rating agencies are unlikely to downgrade the nation's sterling credit rating soon. However, they said that Treasury should continue to focus on selling longer-term bonds to minimize the threat of a downgrade based on high future deficits.

Follow Yahoo! Finance on Twitter; become a fan on Facebook.

[Bindare_Dundat]

2 trillion in 10 years. hahahahahahahahahaha

If you believe that is going to help, kill yourself now or risk getting eatin alive in he streets when the shit really hits the fan.

[Soul Crusher]

2 trillion in 10 years. hahahahahahahahahaha

If you believe that is going to help, kill yourself now or risk getting eatin alive in he streets when the shit really hits the fan.

We are really close to collapse.  Its coming fast.   

[kcballer]

Hahaha coming to a collapse! haha love it. 

A gold whore and a fear mongerer both trading nonsense about the US future.

Sorry boys but your doom and gloom ain't going come to fruition for quite some time.   

[Soul Crusher]

Hahaha coming to a collapse! haha love it. 

A gold whore and a fear mongerer both trading nonsense about the US future.

Sorry boys but your doom and gloom ain't going come to fruition for quite some time.   

LMAO - i guess you prefer we turn in to Zimbabwe? 

[kcballer]

LMAO - i guess you prefer we turn in to Zimbabwe? 

Hahaha you think we will huh? 

Wow you are dense. 

[Soul Crusher]

Hahaha you think we will huh? 

Wow you are dense. 

Yes, with the communist mini-madoff as POTUS and his Counterfieting Czar Bernake at the helm of the printing press, we are doomed to worse the greece like status. 

[dario73]

The only difference between USA and Greece is that the USA can print it's own money.

[kcballer]

Yes, with the communist mini-madoff as POTUS and his Counterfieting Czar Bernake at the helm of the printing press, we are doomed to worse the greece like status. 

haha f*ck off with this nonsense talk. 

We aren't greece you moron.  You sound more like an illiterate dunce than anything.  Seriously you claim to be some kind of source on economics yet you compare us to greece?  hahaha

There really is no point even talking with you. 

[Soul Crusher]

The only difference between USA and Greece is that the USA can print it's own money.

Only an abject idiot could support this money printing madness.