Treasury official: Obama to ask for a debt limit hike

posted at 12:36 pm on December 27, 2011 by Tina Korbe

Oh, brother. Here we go again. We already knew this summer’s epic debt ceiling showdown didn’t matter in the end. The standoff ultimately accomplished nothing meaningful in the way of debt and deficit reduction — no balanced budget amendment, no spending caps and no substantive spending cuts or entitlement reform, thanks to the eventual failure of the Super Committee. But it did result in an increase in the debt ceiling. President Obama was satisfied with that for just a few months. Now, he plans to ask for yet another increase in the federal government’s borrowing capacity, a senior Treasury official says. Reuters reports:

The debt limit is projected to fall within $100 billion of the current cap by December 30. President Barack Obama is expected to ask for additional borrowing authority to increase the limit by $1.2 trillion. …

The debt limit currently stands at $15.194 trillion and would increase to $16.394 trillion with the request.

If you recall, this presidential call for another hike was provided for in the deal this summer. Republicans touted the two-pronged request process (a debt ceiling increase this summer and the chance to request another increase now) as a victory of sorts — as though this second request by Obama would ever be turned down. Congress can block the debt hike extension by a resolution of disapproval, but I’m not holding my breath.


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He is incapable of running a lemonade stand. The ONLY thing he is capable of is speaking, spending and spinning. What does he do REALLY, other than sit around and come up with ways to spend money and buy votes and further divide this country?

j bo on December 27, 2011 at 2:10 PM

Zimbabwe, ho!

profitsbeard on December 27, 2011 at 2:11 PM

Barry LOVES to spend.

GarandFan on December 27, 2011 at 2:12 PM

If Congress doesn’t vote the resolution passes.

Checks and Balances have gone the way of balanced budgets. Our founding fathers have to be turning over in their graves.

fogw on December 27, 2011 at 2:00 PM

They did the same thing with Congressional pay raises. Instead of voting for a pay raise, they get it automatically unless they vote to not get it.

When was the last time you heard about a controversial pay raise bill?

BobMbx on December 27, 2011 at 2:22 PM

Numbers. Just numbers… Add some zeros.
Zero = obama
obama = SCOAMF
Yeah, you already knew we were screwed.

Peppa Pig on December 27, 2011 at 2:24 PM

This is effin’ crazy. Didn’t we just go through this a few months ago?

It’s like he’s trying to drive us all crazy with repetitive, circular actions, until it feels like “Groundhog Day,” and we go nuts.

After 0bamacare, this guy never tried to govern. His re-election campaign started the next morning, and everything since has been calculated by political benefit, rather than national.

Hang onto your hats in 2012… this abomination isn’t going quietly.

cane_loader on December 27, 2011 at 2:26 PM

A reprise from the Newt Victory or Death thread:

We have a problem, Houston, and it is not Newt.

Take a look at the audacity of ObaMao in his signing statements on the latest omnibus spending bill. Congress is trying to rein him in, and he thinks that he is invincible.
http://www.washingtontimes.com/news/2011/dec/26/obama-blows-off-congress/

Please, let us direct our attention to the real egomaniac here– well, actually in Hawaii right now.

ObaMao objects to the defunding of some of his czars, among other tidbits.

onlineanalyst on December 27, 2011 at 2:26 PM

Just stop the damn spending.

COgirl on December 27, 2011 at 2:29 PM

Impeach this POS for jeopardizing national security by spending us into third world poverty.

ultracon on December 27, 2011 at 2:29 PM

Those votes aren’t going to buy themselves, you know.

Joe Mama on December 27, 2011 at 2:31 PM

From NYT article in the headlines. It is infuriating and now they want more money from the tax payers? They don’t worry about their tax rates because there will always be another inside deal or a way to get around their own taxes.

While the median net worth of members of Congress jumped 15 percent from 2004 to 2010, the net worth of the richest 10 percent of Americans remained essentially flat. For all Americans, median net worth dropped 8 percent, based on inflation-adjusted data from Moody’s Analytics.

Going back further, the median wealth of House members grew some two and a half times between 1984 and 2009 in inflation-adjusted dollars, while the wealth of the average American family has actually declined slightly in that same time period, according to data cited by The Washington Post in an article published Monday on its Web site.

FLconservative on December 27, 2011 at 2:32 PM

While the median net worth of members of Congress jumped 15 percent from 2004 to 2010, the net worth of the richest 10 percent of Americans remained essentially flat. For all Americans, median net worth dropped 8 percent, based on inflation-adjusted data from Moody’s Analytics.

It was the best of times, it was the worst of times…

Joe Mama on December 27, 2011 at 2:36 PM

The ONLY thing he is capable of is speaking reading off TOTUS, spending and spinning.

There! I fixed it to reflect that he really can’t speak well without a written aid.

doppiolover on December 27, 2011 at 2:39 PM

Being an optimist, I’d like to think we could squeeze out at least a few cuts out of the next debt-ceiling fight. Hopefully we manage to do a slightly better job at negotiations this time.

WolvenOne on December 27, 2011 at 2:09 PM

Wolven – not sure if you was trying to be intentionally funny here, but I gotta say I was LMFAO at your comment.

Neo-con Artist on December 27, 2011 at 2:43 PM

To: President Obama
From: Treasury Secretary Geithner
Re: Increased Debt

Please be advised that after the last debt increase, there were several mechanical malfunctions in the printing presses. Currently
there are only 5,967 working presses available out of a total of 16,534 presses that were assigned to the Mint. The 10,567 presses
offline are in maintenance with severe burnout.

For the sake of expedience and to lighten our presses workload, may
I suggest that the Mint be authorized to print $1,000,000 bills
instead of the usual hundred, fifty, twenty, ten and five bills?
This will ensure that enough money will be printed before February.

CC: Joey (The Lip) Biden

timberline on December 27, 2011 at 2:51 PM

I remember what optimism felt like. Recently, it’s always been fleeting.

freedomfirst on December 27, 2011 at 2:55 PM

I’m betting on Boehner and Cantor and McConnell wimping out as always, like I’d bet on Romney getting his butt handed to him by obama should he be the nominee.

Wimps don’t win people, so why are we tolerating them?

M_J_S on December 27, 2011 at 12:39 PM

Is that a veiled threat for Ron Paul?

timberline on December 27, 2011 at 2:58 PM

Five years ago today (12/27/2006), Republicans controlled the House, Senate, and Presidency.

Unemployment was 4.4%, and the National Debt was under $8.615 Trillion.

Then, in January 2007, the Democrats took majority control, and both unemployment and the National Debt have skyrocketed.

Real unemployment is well above 10%, and the National Debt is quickly approaching the current limit of $15.194 Trillion and Obama wants to increase that to $16.394 Trillion with the request.

Got that? Obama wants to raise the National Debt limit to by approximately $8 Trillion OVER what the National Debt was when Democrats took majority control from the Republicans a mere 5 years ago.

And the strangest thing about this is the way they inverted the normal process.

Normally, you have to pass AFFIRMATIVE bills in Congress, and the President has the power to say “No” with his veto. Then, the Congress can override the “No” if they have the votes for 2/3 majorities in both houses to vote “Yes”.

This arrangement, however, turns things upside down… it starts with the President (rather than the Congress). It starts with a “request” (rather than a bill). With this arrangement, the Congress is required to pass a “resolution of disapproval” to say “No” to the request. But then the President can use a veto to say “Yes” to the debt limit increase, (because he is saying “No” to the Congress’ “No”!). Then, the Congress can override the “Yes” if they have the votes for 2/3 majorities in both houses to vote “No”. It’s all backwards! I’ve never seen this done before, and It turns the President’s power to say “No” (a veto) into the power to say “Yes” (by saying “No” to the Congress’ “No”).

The ObamaNation is an upside-down world.

ITguy on December 27, 2011 at 2:59 PM

How long will 1.2 trillion last? I’m guessing through the election.

buckeyerich on December 27, 2011 at 12:43 PM

We have a Prophet among us.

Oh, by the way, the 1 trillion budget Obama signed last week goes only until September 30, 2012 and the elections aren’t being held until November, 2012.

timberline on December 27, 2011 at 3:01 PM

ITguy on December 27, 2011 at 2:59 PM

OK, so who’s on third?

timberline on December 27, 2011 at 3:04 PM

Obama is asking for the debt limit to be set a level that is 90% higher than where the national debt was five years ago today, just before Democrats took majority control from Republicans.

ITguy on December 27, 2011 at 3:05 PM

Pelosi and the Democrats won majority control of the House and Senate in the November 2006 elections in large part because of their promises of Fiscal Discipline.

Nancy Pelosi promised:

With integrity, civility and fiscal discipline, our New Direction for America will use commonsense principles to address the aspirations and fulfi ll the hopes and dreams of all Americans. That is our promise to the American people.

Our federal budget should be a statement of our national values. One of those values is responsibility. Democrats are committed to ending years of irresponsible budget policies that have produced historic deficits. Instead of piling trillions of dollars of debt onto our children and grandchildren, we will restore “Pay As You Go” budget discipline.

Budget discipline has been abandoned by the Bush Administration and its Republican congressional majorities. Congress under Republican control has turned a projected $5.6 trillion 10-year surplus at the end of the Clinton years into a nearly $3 trillion deficit– including the four worst deficits in the history of America. The nation’s debt ceiling has been raised four times in just five years to more than $8.9 trillion. Nearly half of our nation’s record debt is owned by foreign countries including China and Japan. Without a return to fiscal discipline, the foreign countries that make our computers, our clothing and our toys will soon be making our foreign policy. Deficit spending is not just a fiscal problem – it’s a national security issue as well.

Our New Direction is committed to “Pay As You Go” budgeting – no more deficit spending. We are committed to auditing the books and subjecting every facet of federal spending to tough budget discipline and accountability, forcing the Congress to choose a new direction and the right priorities for all Americans.

How did Nancy Pelosi’s promises line up with the realities of Nancy Pelosi’s time as Speaker of the house?

————————————————-
National Debt on 01/04/2007,
the day Nancy Pelosi took power as Speaker of the House:
$8,670,596,242,973.04 ($8.671 Trillion)

National Debt on 01/03/2011,
after four years of Nancy Pelosi as Speaker of the House:
$13,997,932,781,828.89 ($13.998 Trillion)

Source: U.S. Department of the Treasury, Bureau of the Public Debt

————————————————-

The National Debt increased over $5.3 Trillion under Pelosi’s watch.

Pelosi promised not to pile “trillions of dollars of debt onto our children and grandchildren”, then proceeded to break records in pilling over $5.3 trillion in new debt onto our children and grandchildren in just 4 short years.

ITguy on December 27, 2011 at 3:11 PM

Democrats are committed to ending years of irresponsible budget policies that have produced historic deficits. Instead of piling trillions of dollars of debt onto our children and grandchildren, we will restore “Pay As You Go” budget discipline.

… no more deficit spending.

Bovine Excrement!!!

ITguy on December 27, 2011 at 3:14 PM

Leftist speechwriters produce some impressive rhetoric. Then their bosses press on with their scorched earth policies. What brainwashed (brain-addled) followers even understand and then recall what they’ve said? Take it a step further…how many of them understand the consequences of what these leftists are doing?

freedomfirst on December 27, 2011 at 3:26 PM

Obama’s slush fund funded by the House and the Senate.

lea on December 27, 2011 at 3:28 PM

Annnnnnd he’ll GET it!

sanjuro on December 27, 2011 at 3:32 PM

At least Captain Smith tried to miss the iceberg.

hoofhearted on December 27, 2011 at 3:39 PM

Hey, I played this game before when I was a kid….

It’s called “Tails, I win, Heads, you lose.” I never got the hang of it for some reason…. my big brother was really good at it.
/sarc

mr_west on December 27, 2011 at 3:44 PM

Tell ObaMao to ask John Corzine for a “loan” with some of the “found” money.

onlineanalyst on December 27, 2011 at 3:48 PM

Come on, let the children have their fun, a big time out is coming November of 2012. It’s our responsibility to put the adults back in charge, smash the printing presses, slash the deficit, balance the budget, kill useless progressive free-for-all programs, address and revise the tax code and right this nation again. Conservatives will have to be out in force to make this happen. I’m ready, Ill be there.

NEWRIVERELECTRIC on December 27, 2011 at 3:59 PM

1.2 Trillion so he can buy off his peeps.Now they can all go out and buy the new Retro Jordans.!!!

chuckachucka on December 27, 2011 at 4:17 PM

For the first time in my life I am truly terrified for my country….

That article at the WA Times is one of the most frightening I have ever read. Isn’t total subordination of the US Constitution grounds for Impeachment? For the love of God where is the republican leadership? VACATIONING? This may be one of the worst news days I have ever witnessed save for obamacare.

FLconservative on December 27, 2011 at 4:19 PM

Where can I find a deep dark cave and hide from the horror that is Obama amd Washington.

jeanie on December 27, 2011 at 4:19 PM

No, no,no, a trillion times no!

GFW on December 27, 2011 at 4:23 PM

cut the spending really!!! no growth spending and no increase

scboy on December 27, 2011 at 4:41 PM

We hear how much the nine year war cost us, 800 billion and this POTUS wants 1.2 trillion like it’s chicken feed. No nads Congress will probably give it to him with tears in their eyes saying,”We were forced into doing that”. I don’t want to hear one Congressman complain about the President.

mixplix on December 27, 2011 at 5:19 PM

…..Isn’t total subordination of the US Constitution grounds for Impeachment? For the love of God where is the republican leadership? VACATIONING? This may be one of the worst news days I have ever witnessed save for obamacare.

FLconservative on December 27, 2011 at 4:19 PM

Alas, not grounds for impeachment. This is the second shoe to drop from the debt ceiling increase deal, which increased the ceiling, and gave the President the right to request a further increase (subject to an override vote by both houses of Congress), in exchange for the famous super committee which was intended to find USD 1.2 trillion of expenditure reductions. The good news, if there is any, is that he can only ask once and then things go back to “normal” ie the ceiling is binding and can only be increased with majority votes by both houses.

The solution, as many comments note above, is to stop the spending.

Upstreamer on December 27, 2011 at 5:37 PM

Hopefully we manage to do a slightly better job at negotiations this time.

WolvenOne on December 27, 2011 at 2:09 PM

I would share your optimism if the GOP was capable of negotiating themselves out of a wet paper bag.

MelonCollie on December 27, 2011 at 6:04 PM

You don’t buy many votes with cheese people.

FineasFinn on December 28, 2011 at 9:04 AM

We are selling our children’s birthright for a mess of pottage. Boy are they gonna be ticked when the vail of Obama worship falls from their eyes.

KW64 on December 28, 2011 at 7:25 PM

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