Wednesday, December 16, 2009

US National Debt Tops Debt Limit

Debt limit; what is a debt limit? This is American, we can just keep spending until money looses all meaning. To harsh; only until you read about he "extraordinary accounting tools" that give us a $150 billion 'cushion'. Not to worry to much about that pesky limit, they are in the process or raising it. And we will almost certainly be back in the situation in the fairly near term.

"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. It is expected to approve the measure.)

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