Reminder: We’ll be hitting the debt ceiling before the end of 2012

posted at 5:01 pm on November 6, 2012 by Erika Johnsen

The clock is ticking and the results are going to start trickling in soon, but I can’t just sit here twiddling my thumbs for another hour, so here’s a friendly last-minute reminder for you if you’re in the same boat. Regardless of whether the nation picks the incumbent or the challenger as their leader for the next four years, we still have an imminent situation to deal with — the debt limit isn’t going to just raise itself, you know. Via CNS News:

The U.S. Treasury quietly warned at the end of a statement issued last Wednesday that it expects the federal government to hit its legal debt limit before the end of this year–which means before the new Congress is seated–and that “extraordinary measures” will be needed before then to keep the government fully funded into the early part of 2013.

On Aug. 2, 2011, President Obama signed a deal he had negotiated with congressional leaders to increase the debt limit of the federal government by $2.4 trillion. But, now, after only 15 months, almost all of that additional borrowing authority has been exhausted. …

“Treasury continues to expect the debt limit to be reached near the end of 2012,” says the tenth paragraph of the “Quarterly Refunding Statement” put out by Assistant Secretary of the Treasury for Financial Markets Matthew Rutherford.

“However, Treasury has the authority to take certain extraordinary measures to give Congress more time to act to ensure we are able to meet the legal obligations of the United States of America,” said the statement. “We continue to expect that these extraordinary measures would provide sufficient ‘headroom’ under the debt limit to allow the government to continue to meet its obligations until early in 2013.”

In a nutshell, the Obama administration’s ferocious spending habits keep driving us up against a wall, and even if the Treasury can do some fancy financial rejiggering to keep the government legally running slightly beyond the deadline and into 2013, the lame duck Congress may still have to deal with this, not to mention the coming “fiscal cliff.” And then, of course, there’s also the possibility that the executive branch and our Congressional makeup will remain unchanged, and then we’ll be no better off than we are now anyways.

So what did America decide today, I wonder? A path to more huge deficits and debt, a lack of leadership, economic stagnation, and more silly legislative-financial dithering like this; or a well-managed path to prosperity and reduced deficits and debt? Time will tell.


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Not to worry. Boehner will see that it is raised.

they lie on November 6, 2012 at 5:07 PM

Prediction …

John “Crybaby” Boehner will lament the fact that we need deep cuts in spending – but in the end he’ll secretly make an agreement with Obama to up that ceiling!!

He’ll do it because – firstly, he can blame it on Obama. The GOP Ayatollahs want to raise that ceiling just as much as the Dims – they just don’t want to get blamed for it.

Raising that ceiling and making Obama take the blame for it will be a nice little present for President Willard when takes office.

HondaV65 on November 6, 2012 at 5:07 PM

Obama is Awesome win or lose.

rob verdi on November 6, 2012 at 5:08 PM

obama voters- “who cares about silly stuff like that when we have such a cool and dreamy leader”

gsherin on November 6, 2012 at 5:08 PM

first things first Erika; win tonight then deal with the reality dems have tried to hide since about mid 2007

DanMan on November 6, 2012 at 5:10 PM

We are on a highway to h*ll

molding_perception on November 6, 2012 at 5:10 PM

So what did America decide today, I wonder? A path to more huge deficits and debt, a lack of leadership, economic stagnation, and more silly legislative-financial dithering like this; or a well-managed path to prosperity and reduced deficits and debt?

Well, for 47% of our population it’s very simple: FREE SH!T

NapaConservative on November 6, 2012 at 5:11 PM

If Romney wins, this will come down to how badly Harry wants to spend tons of money in the lame duck session. If he thinks that is an option, he will work out a deal to get Zero the money and the bills he needs, and Boehner will roll for it. If he doesn’t think it is an option, he will let the country burn, blame intransigent Republicans, and force Romney to deal with it.

stvnscott on November 6, 2012 at 5:12 PM

count three RR vote here in michigan…
the poll workers told me here it’s
more like a 2000 turnout for what thats worth…
please lord…lift this nation from the darkness tonight….

going2mars on November 6, 2012 at 5:13 PM

The scariest thing in there is that we’ve borrowed almost $2.4 trillion in only 15 months. And that’s not what we’ve spent, that’s just what we’ve spent above and beyond our tax revenues.

The proposed deficit for 12 months was supposed to be roughly $1.3 trillion according to the CRs for the budget, but $2.4 trillion in 15 months equates to $1.92 trillion for 12 months. How the heck are we overshooting our budget by $600 billion?!? And how can any sane person think that we can continue to spend and borrow like this?!?

gravityman on November 6, 2012 at 5:16 PM

Don’t be a downer today, Erika.

We’ve been waiting four long, hard years for this day.

INC on November 6, 2012 at 5:17 PM

My brother called my mom this morning to brag that his vote cancelled out hers. (She voted R/R and he voted Obama) His reason—-Look how high Bush drove up the debt & Republicans are big spenders. ….banging head against wall….. Still the “It’s all Bush’s fault” argument. Typical Obama voter.

JennM111 on November 6, 2012 at 5:17 PM

Don’t be a downer today, Erika.
She is not being a downer, she is being realistic. Reality is setting in.

molding_perception on November 6, 2012 at 5:19 PM

count three RR vote here in michigan…
the poll workers told me here it’s
more like a 2000 turnout for what thats worth…
please lord…lift this nation from the darkness tonight….

going2mars on November 6, 2012 at 5:13 PM

AMEN!

JennM111 on November 6, 2012 at 5:19 PM

Not to worry. Boehner will see that it is raised.

they lie on November 6, 2012 at 5:07 PM

…but won’t Boner cry first?

KOOLAID2 on November 6, 2012 at 5:20 PM

I expect that if Obama wins that he’ll decide that he doesn’t need congressional approval to raise the debt ceiling. The Dems will be fine with that because they can’t wait.

Sebastian on November 6, 2012 at 5:20 PM

count three RR vote here in michigan…
the poll workers told me here it’s
more like a 2000 turnout for what thats worth…
please lord…lift this nation from the darkness tonight….

going2mars on November 6, 2012 at 5:13 PM

…thank you!…we may not do it in Michigan…but I think the rest of you will come through!

KOOLAID2 on November 6, 2012 at 5:22 PM

Oh Thank you, Thank you very much,Erika!

tim c on November 6, 2012 at 5:22 PM

OT: Just went to CNN.com.
I couldn’t find any mention of the “shenanigans” going on at the polls today.
Huh?

RedCrow on November 6, 2012 at 5:25 PM

Don’t be a downer today, Erika.

We’ve been waiting four long, hard years for this day.

INC on November 6, 2012 at 5:17 PM

Regardless of the winner, it’s important that politicians collaborate on finding solutions with an emphasis on pragmatism. It’s how both Clinton and Reagan operated. It’s how our democracy was designed to function, and constant bickering and finger pointing across party lines only sets this country back further.

bayam on November 6, 2012 at 5:27 PM

hey its not just DC doing this. If you live in a big city chances are you owe way more than you know.

Our city budget appears to balance until you add in the pension obligations that not only have not been fully funded for almost 10 years, that unfunded amount is expected to achieve 8.5% returns to pay for those pensions. The City of Houston is currently about $6 billion on the lite side with annual budgets of about $2.5 billion.

This explains why Houston is growing at 1% while the suburbs are exploding. People are running from the problem.

DanMan on November 6, 2012 at 5:27 PM

If Romney wins, this is a non-issue. Boehner will agree to raise the ceiling with a short-term raise that pushes things off to the spring. President Obama might try to demand something in return, but as a lame duck, he wouldn’t have much bargaining power.

If Obama wins, it doesn’t really matter that the debt ceiling comes up this year — the whole fiscal cliff issue will have to be dealt with *sometime* in the next four years.

ClintACK on November 6, 2012 at 5:30 PM

actually Kool….i turned around my brothers vote from 08…+1R
my mother can no longer care for herself so i moved her here
from florida so shes another +1R for michigan and last election
i was in california and now im home so another +1R….
that +3R at my house alone….in michigan..go RR…!!!

going2mars on November 6, 2012 at 5:30 PM

and constant bickering and finger pointing across party lines

wrong as usual bayam, Harry Reid has bottled up almost all legislative efforts for two years and budget discussions for going on four. Totally a democrat caused disaster.

DanMan on November 6, 2012 at 5:31 PM

My friend keeps telling me Obama has to cut a deal but I can easily see him letting the tax cuts expire and letting sequestration happen if he wins or loses. If he loses he might be petty and vindictive if he wins stripping America down to the core and rebuilding it as a socialist paradise may be his end game. Either way Im not counting on him being the grownup in the room. Its make America pay.

ldbgcoleman on November 6, 2012 at 5:35 PM

or a well-managed path to prosperity and reduced deficits and debt?

Oh I’m sure of it. /

Dr. ZhivBlago on November 6, 2012 at 5:37 PM

$84,000 billion in unfunded liabilities
15,100 billion total income of everyone (GDP)

Total government revenue $2,902 billion (requested)
Total government expenditures $3,803 billion (requested)
Deficit $901 billion

Lets spend more!!!

sharrukin on November 6, 2012 at 5:40 PM

This just in: Exit Polls coming in on Drudge!

Longing4Lincoln on November 6, 2012 at 5:41 PM

when your on the topic of spending and debt…
shouldnt we also include the term ‘Criminal liability’
towards the MSM…they have lied and misled the sheep for years..

going2mars on November 6, 2012 at 5:48 PM

obama played basketball at a foreclosed home

hello

cmsinaz on November 6, 2012 at 6:08 PM

Regardless of the winner, it’s important that politicians collaborate on finding solutions with an emphasis on pragmatism. It’s how both Clinton and Reagan operated. It’s how our democracy was designed to function, and constant bickering and finger pointing across party lines only sets this country back further.

bayam on November 6, 2012 at 5:27 PM

Actually our system was design as a serious of checks and balances. One branch wasn’t supposed to cave to the others just to get along. You wanna see bi-partisan simpler go back and look at the votes to raise the debt ceiling, or invade Iraq, pass the NDAA or Patriot Act 1 and 2. Our history is ripe with politicians compromising in order t screw the individual.

MoreLiberty on November 6, 2012 at 6:56 PM

Of course it is just Obama’s spending. It is not as if the Republicans did not authorize the spending. They do control the house of Representatives, right? No spending gets done without their authorization. It is all a circle jerk with the only people left out being the average American Citizen.

astonerii on November 6, 2012 at 7:44 PM

Regardless of the winner, it’s important that politicians collaborate on finding solutions with an emphasis on pragmatism. It’s how both Clinton and Reagan operated. It’s how our democracy was designed to function, and constant bickering and finger pointing across party lines only sets this country back further.

bayam on November 6, 2012 at 5:27 PM

Reagan and the Democrats never compromised, the collaborated in raping America. As great as Reagan was, he worked with congress in the following way. Reagan got funded, Democrats got funded, devil may care how it got paid for.

Clinton was forced into his good actions by the Contract with America and Newt being a better negotiator. We would have gotten more done if the collaborating Republicans had stood down and pushed things more to the brink, instead they stabbed Newt in the back and let Clinton off the hook.

Collaborating against the citizens is not good.

astonerii on November 6, 2012 at 7:48 PM

You know what – bring on the sequester.

Sheerq on November 7, 2012 at 1:57 AM

I’ve always said things were going to get a lot worse before they get better. Congress obviously hasn’t learned its lesson yet. It’s probably going to take either hyperinflation via money printers on overdrive, or just plain bad inflation due to the Treasury being downgraded to junk bond status, for real spending reform to begin.

TMOverbeck on November 7, 2012 at 8:18 AM