US deficit hits $14 trillion! History made!!!

Discussion in 'Wall St. News' started by zanek, Jan 20, 2011.

  1. zanek


    The government deficit has ballooned to an all-time, eye-popping high: $14 trillion.

    And what does the frightful milestone mean for the average American? A whopping historical record $45,300 for each person.

    While the government spending debate has been going on for decades, the upcoming one will center around whether or not Congress will lift the legal debt limit or rework the budget to cut spending in order to stay under the current cap.

    The Obama Administration (and most Democrats) are encouraging Congress to pass the bill allowing the increase. They argue it will help protect the American economy from potential disaster.

    On Jan. 6, Treasury Secretary Tim Geithner sent a letter to Majority Leader Harry Reid (D-Nev.), encouraging him to lift the ceiling.

    "Never in our history has Congress failed to increase the debt limit when necessary. Failure to raise the limit would precipitate a default by the United States," he wrote. "Default would effectively impose a significant and long-lasting tax on all Americans and all American businesses and could lead to the loss of millions of American jobs. Even a very short-term or limited default would have catastrophic economic consequences that would last for decades."

    While the issue of raising the debt ceiling is under the political spotlight now, it's not anything new.

    The current debt ceiling was raised to $14.3 trillion last year, but under a heavily-Democratic Congress, did not spark nearly the same debate. But in 2006, Democrats - including President Obama - fought against raising the debt ceiling to protest the trillions being spent on the ongoing wars in Iraq and Afghanistan.

    "The fact that we are here today to debate raising America's debt limit is a sign of leadership failure. It is a sign that the U.S. government can't pay its own bills," he said. "It is a sign that we now depend on ongoing financial assistance from foreign countries to finance the government's reckless fiscal policies."

    Now that Republicans --who have promised fiscal responsibility -- have a majority in the House, the Democrats are bracing for a tough fight.

    Newly-elected Republicans are especially nervous about the vote, GOP leaders told the Wall Street Journal on Friday.

    They added while they expected the vote to raise the debt ceiling to pass, the bill would come with significant cuts. What exactly those cuts would be is unclear.

    "Do I want to see this nation default? No," said Rep. Paul Ryan, (R-Wis.), chairman of the House Budget Committee. "But I want to make sure we get substantial spending cuts and controls in exchange for raising the debt ceiling."
  2. The debt ceiling should be abolished. It's just stupid.
    As for the rest, political posturing. What needs to happen is simple, and Keynesian: all he said was to save for a rainy day when times are good, and when times are bad, spend it with abandon.
    Instead, when times were good, the funds were spent with abandon, and now that times are bad, the same conservatives who only issued half-hearted denunciations of Bush's mad spending are now suddenly aghast that times are bad and money is being spent.
  3. S2007S


    Finally, now they get to raise it yet again!!!!!

    Anyone want to take a guess where it goes???

    Im hoping for a nice $100 Trillion, why cap it at $15 or $16 trillion, make it nice significant number......

    Fuck it why even have a debt ceiling!!!!

    HAHAH what a joke!
  4. BSAM


    AHHHH.....It's only money. Ten years from now you'll look back at this thread and think about the good ol' days.:p
  5. S2007S


  6. S2007S


    True, $14 Trillion will look like a few dollars!!!!!
  7. joe4422


    Fortunately the Chinese have been dumb enough to keep buying our debt.
  8. Well it's not too bad, Japan has a higher debt/GDP ratio of almost 200%. The US just have around a measly 100% of gdp. :p
  9. Eight


    The government's accounting is bogus too.. some analysts looked into the debt thingy and included all the stuff that is off the books. The real range is $60 to $200 Trillion.

    There is a world wide meltdown of socialism going on. Nobody can pay out all they promised and there is no more "other people's money" to fund the current obligations. The same thing happened in Marxist Russia. First their economy died then they lumbered along for a few decades pretending they could hold out until capitalism underwent it's "inevitable" collapse.. which it didn't, then they gave up finally... So I was explaining this to a leftist last night and he says "socialism is not collapsing, capitalism is collapsing!!" and he wants to argue that socialism works...

    Socialism was invented to replace Christianity. So far nothing has ever replaced Christianity and everything that was designed to work against Christianity has failed so why expect socialism to work?