Debt ceiling 100% of GDP.... Just keep borrowing to prop up the economy because that's what REAL growth is all about. Tired of hearing about the turnaround in this economy when in reality its just the trillions of dollars being pumped into the system to make it look like things are getting better. U.S. debt ceiling raised Published: Dec. 17, 2009 at 9:06 AM By United Press International WASHINGTON, Dec. 17 (UPI) -- The U.S. House of Representatives took steps to increase the borrowing power of the federal government, which was nearing its credit limit of $12.1 trillion. The House, on a 218-214 vote, Wednesday advanced a measure to increase the federal debt limit by $290 billion. It also passed on a $154 billion economic-aid package and a $636 billion defense authorization. Last week House Majority Leader Steny Hoyer, D-Md., said the debt ceiling would need to be increased by more than $1.8 trillion to give the government a sufficient line of credit. Wednesday's House vote came as the United States technically passed its current debt ceiling as U.S. Treasury figures show the country owes $12.135 trillion. The new limit awaits consideration by the Senate. The economic-aid measure provides funds to extend unemployment benefits, aid for state governments and spending on infrastructure. Some of the money for that bill is expected to be taken from the Troubled Asset Relief Program. The defense bill includes more than $128 billion to pay for the fighting in Afghanistan and Iraq.
Sorry to post a stupid question. Why don't they just raised the debt ceiling to a nice rounded number like 2 Trillion? Does it make any difference 1.8 and 2? It's like asking a friend to borrow some money for public transportation, its better to ask 2 dollars compared to 1 dollar and .80 cents. Not like we can pay it back anyways.
Thats the thing, why are they "Acting" conservative. When in reality they want to spend like drunken sailors in a whorehouse. Might as well raise the ceiling to 2 tril. What if later on our creditors don't have the savings to lend to us, then we would saying to ourselves; why didn't we borrow more when we had the chance.
No need to worry about creditors turning the other cheek. The government just borrows from the Fed. It's a brilliant system, the Fed issues bonds with the left hand and turns around and buys them with the right. Each transaction cancels the other out and the Fed looks as healthy as it did before this transaction until....until....well, you fill in the blank here.