Congress on notice: U.S. to hit the debt limit in mid-October

posted at 9:01 pm on August 26, 2013 by Erika Johnsen

Remember, the other day, when President Obama so righteously declared to the young people the audience that “we don’t have an urgent deficit crisis”?

We’ll still have to make some modifications when it comes to our long-term entitlement programs so that they’re here for young people here when they’re ready for retirement, but we don’t have an urgent deficit crisis. The only crisis we have is one that’s manufactured in Washington, and it’s ideological. And the basic notion is, is that we shouldn’t be helping people get health care and we shouldn’t be helping kids who can’t help themselves and whose parents are underresourced, we shouldn’t be helping them get a leg up.

Nutshell version: ‘Yes, we kinda’-sorta’ have a long-term fiscal disaster on our hands with our entitlement programs, although I plan to contribute precisely nothing else beyond ObamaCare to the solution — and nah, you young people especially don’t have any reason to worry about our running deficit or ObamaCare at all! Besides, those Republican squares live to thwart me personally, and your only two choices here are for either more government spending, or more poverty and human misery. Done and done.’

The more honest assessment of the situation, of course, is that we’ve shot way past the point where all of this debt and deficit spending is coming at the opportunity cost of a robust economy and more widespread prosperity, and that failure to address the problem in a substantive way now is only going to mean accelerating toward still more consequences in the not-so-distant future.

I merely mention all this again because the budget battle is going to be a forefront issue starting pretty soon here, and the above is almost certainly an example of the sort of intellectually hollow rhetoric to which we’ll be regularly treated. Whether it turns into another down-to-the-wire battle for political concessions or is casually shuffled through as routine business is still an open question, via the WSJ:

The U.S. Treasury Department said Monday it would hit its borrowing limit in mid-October and could no longer be able to pay all its bills soon after that time.

The timeline could step up pressure on Congress to decide whether to raise the debt ceiling in the coming weeks. Lawmakers remain split over whether to simply increase the government’s borrowing authority or to insist that any increase be combined with a large deficit-reduction package.

Treasury Secretary Jacob Lew told Congress on Monday that after mid-October, the government would be able to make payments “with only the cash we have on hand on any given day.” In a letter to House Speaker John Boehner (R., Ohio), Mr. Lew projected the Treasury would have roughly $50 billion on hand by mid-October, and said this level “would be insufficient to cover net expenditures for an extended period of time.”


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Congress on notice: U.S. to hit the debt limit in mid-October

is that when they’re going to start counting again?

Lost in Jersey on August 26, 2013 at 9:04 PM

So what, apparently we have a never-ending source of solidly-backed currency sitting in a giant building somewhere, plenty for everything. Bark will ask to have some of that pile and the liver flukes who are colloquially known as “Congress” will go right along with it.

We’re beyond screwed as it is, might as well go full tilt because it really doesn’t make a difference anymore.

Bishop on August 26, 2013 at 9:07 PM

Treasury: Debt Has Been Exactly $16,699,396,000,000.00 for 56 Days

That means that for 56 straight days the federal debt has remained approximately $25 million below the legal limit.

It’s a game.

sharrukin on August 26, 2013 at 9:07 PM

We will hit that limit precisely when it is most advantageous to Obama and his ilk.

AshleyTKing on August 26, 2013 at 9:08 PM

Lost in Jersey on August 26, 2013 at 9:04 PM

exactly what I was thinking!

CoffeeLover on August 26, 2013 at 9:08 PM

Mock Them.

Bmore on August 26, 2013 at 9:08 PM

That’s my question too Lost. I thought Treasury was already taking drastic measures, aka just not subtracting the checks from the account??? Stop the madness!

txhsmom on August 26, 2013 at 9:09 PM

Thanks Sharrukin!

txhsmom on August 26, 2013 at 9:11 PM

The U.S. Treasury Department said Monday it would hit its borrowing limit in mid-October and could no longer be able to pay all its bills soon after that time.

Shut it down! Not any sort of agreement that continues the financing of Obamacare. Not any funding for further domestic illegal snooping by NSA and Clapper/Alexander are fired in disgrace. No funding of the FISA court until the criminals allowing the spying are disbarred and policies are more more transparant. No funding of the IRS until Lerner testifies and people are fired. No funding of DoJ with Holder in charge.

Again. Shut it down!

Happy Nomad on August 26, 2013 at 9:13 PM

It’s a game.

sharrukin on August 26, 2013 at 9:07 PM

A game like that will get your legs broken in Vegas.

Oldnuke on August 26, 2013 at 9:15 PM

A game like that will get your legs broken in Vegas.

Oldnuke on August 26, 2013 at 9:15 PM

The boys in Washington are running the house and the house never loses.

sharrukin on August 26, 2013 at 9:20 PM

Phoney scandal…everything is great, Obama told me so.

trs on August 26, 2013 at 9:21 PM

…but we don’t have an urgent deficit crisis. The only crisis we have is one that’s manufactured in Washington, and it’s ideological.

 
This from the man who couldn’t figure out how to pay off $80K in student loans on years and years of $250K+ income until he hit the book deal lottery 25 years later.
 
Yeah, you’re the guy I want handling our finances. Great choice, America.

rogerb on August 26, 2013 at 9:22 PM

Treasury: Debt Has Been Exactly $16,699,396,000,000.00 for 98 Days

That means that for 98 straight days the federal debt has remained approximately $25 million below the legal limit.

sharrukin on August 26, 2013 at 9:07 PM

Your post needed a little updating (the original story was from July 15).

parke on August 26, 2013 at 9:22 PM

Your post needed a little updating (the original story was from July 15).

parke on August 26, 2013 at 9:22 PM

The numbers are being manipulated. They aren’t real. What exactly needs to be updated?

sharrukin on August 26, 2013 at 9:25 PM

*wrings hands emphatically*

Oh my, I’m going to faint if these HA writers don’t stop pointing out the problems with leftist behavior and thought!

Great googly-moogly, where will it all end? Ed, please correct your fellow writers posthaste before it’s too late! They’re… *gasp* … not ceding the field to the Left to say and do whatever they want – the horror!

Midas on August 26, 2013 at 9:28 PM

Mock Them.

Bmore on August 26, 2013 at 9:08 PM

Noooooooooooo!!!1.1..1!!

*hyperventilates*

All kidding aside, and with a change of subject, thanks again for the ‘galt’ thoughts, and was curious as to how you go about researching folks like inklake from their website… ;)

Midas on August 26, 2013 at 9:30 PM

Midas on August 26, 2013 at 9:30 PM

I read his blog.

Bmore on August 26, 2013 at 9:33 PM

That means that the Obamas can still get in one or two vacations before we run out of money! There should be enough time for some great end of summer parties, too.

DAT60A3 on August 26, 2013 at 9:41 PM

So what, apparently we have a never-ending source of solidly-backed currency sitting in a giant building somewhere, plenty for everything. Bishop on August 26, 2013 at 9:07 PM

Must be in N.C. and Utah, next to all of our emails and phone records.

Cindy Munford on August 26, 2013 at 9:54 PM

I read his blog.

Bmore on August 26, 2013 at 9:33 PM

Ah – masochist, eh?

Midas on August 26, 2013 at 9:54 PM

I like to know the enemy. ; )

Bmore on August 26, 2013 at 9:55 PM

This is how it’s going to play out….it’s so easy to figure out.

1. Barack attacks Syria…we’re at war.
2. The next debt crisis happens.
3. Barack dares the GOP to cut military spending (along with anything else..i.e. the “sequester”).
4. Boehner cries in fear. Nancy Boy and McCain say we must spend.
5. Barack wins.

SouthernGent on August 26, 2013 at 10:04 PM

I know I sound like a broken record on this, but all can be dealt with through the budget and the Republicans refuse to hold the Senate’s feet to the fire. All they have to do is tell the Senate they will not sign a CR, they will only deal with this through the budget. Then, they pass a budget, including spending cuts to keep the debt below the limit and force the Senate to pass a budget with the tax increases the Democrats want to keep the debt low.

What they all want is to sign a CR and kick the can down the road, once again. That’s why John Boehner has to go as Speaker of the House. He should have done this years ago. The debt keeps going up, he keeps signing CR’s and the Democrats keep spending money. Why did we elect a Republican House? It certainly wasn’t to do this.

bflat879 on August 26, 2013 at 10:08 PM

I don’t want to live in a country where everybody needs to helped all the damn time.

I want to live in a country where everyone can construct a great life without help (control) by the government!

Meremortal on August 26, 2013 at 10:26 PM

Congress on notice: U.S. to hit the debt limit in mid-October

Ohhhh, GOODY!!! Now the Spelunker of the House can cave earlier than the aforementioned November/December “showdown” and then get on about the business of planning his Thanksgiving and Christmas Holiday breaks…

Gohawgs on August 26, 2013 at 10:29 PM

bflat879 on August 26, 2013 at 10:08 PM

Too simple and direct for our three dimensional chess playing status quo R “leadership” in D.C….

Gohawgs on August 26, 2013 at 10:33 PM

Shut the government down. Rip the band-aid off. Short term pain for long term gain.

Iblis on August 26, 2013 at 10:51 PM

we don’t have an urgent deficit crisis. The only crisis we have is one that’s manufactured in Washington, and it’s ideological.

Let’s go back to what the Democrats put in writing in 2006, when they thought then-current deficits (like $248 Billion in FY 2006) were a NATIONAL SECURITY ISSUE…

Over the past decade, the Republican controlled Congress took our nation in the wrong direction. Too many Americans are paying a heavy price for those wrong choices: record costs for energy, health care and education; jobs shipped overseas; and budgets that heap record debt on our children. For millions, the middle-class dream has been replaced by a middle-class squeeze…

Democrats are proposing a New Direction for America…

With integrity, civility and fiscal discipline, our New Direction for America will use commonsense principles to address the aspirations and fulfill 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.

Pelosi promised no more deficit spending. Pelosi promised that both in writing (above) and live on C-SPAN:

After years of historic deficits, this 110th Congress will commit itself to a higher standard: pay-as-you-go, no new deficit spending. Our new America will provide unlimited opportunity for future generations, not burden them with mountains of debt.

- New Speaker Nancy Pelosi, 01/04/2007

In 2008, Obama made deficit spending a campaign issue:

“The problem is, is that the way Bush has done it over the last eight years is to take out a credit card from the Bank of China in the name of our children, driving up our national debt from $5 trillion for the first 42 presidents – #43 added $4 trillion by his lonesome, so that we now have over $9 trillion of debt that we are going to have to pay back — $30,000 for every man, woman and child. That’s irresponsible. It’s unpatriotic.

- Barack Obama July 3, 2008

Republicans held majority control (holding 2+ out of 3 of the House, Senate, and Presidency) from January 3, 1995 to January 2, 2007 and were majority responsible for the FY 1996 to FY 2007 budgets. Over those 12 continuous years of Republican majority control, the total national debt increased from $4.974 Trillion to $9.008 Trillion, an increase of $4.034 Trillion over 12 years, for an average of $0.336 Trillion new debt per year.

The Democrats have held majority control (holding 2+ out of 3 of the House, Senate, and Presidency) since January 3, 2007, and are majority responsible for the FY 2008 to FY 2013 budgets (and have failed to pass a budget since FY 2009).

On April 30, 2013, after 5 and 2/3 Fiscal Years of Democrat majority control, the total national debt was $16.829 Trillion.

In 5 2/3 years, Democrat majorities have added more than $7.82 Trillion to the national debt, an average of $1.380 Trillion per year.

Obama said adding $4 Trillion in debt over 8 years (really over 12 years) was “irresponsible” and “unpatriotic”.

Yet Obama (first as a Senator in the Democratic majority, and then as pResident), has added over $7.82 Trillion in 5 and 2/3 years.

Republican majorities added an average of $0.336 Trillion new debt per year for 12 years.

Democrat majorities have been adding an average of $1.380 Trillion new debt per year for the last 6 Fiscal Years, all after Pelosi promised, in writing and from the Speaker’s rostrum on C-SPAN, “no more deficit spending”.

Democrats now claim that we don’t have a debt problem. LIARS.

In their view,
$5 Trillion +$4 Trillion = $9 Trillion: BAD (when it was Clinton, Bush and Republican majorities), but
$9 Trillion +$7.8 Trillion = $16.8 Trillion: GOOD (when it was Democrat majorities doing it under Bush and Obama).

In their view,
$0.336 Trillion new debt per year: BAD (when it was Bush and Republicans), but
$1.380 Trillion new debt per year: GOOD (when it was themselves doing it).

Pelosi promised “fiscal discipline” and “no more deficit spending”, but then added more new debt than any other House Speaker in history.

Democrats promised “fiscal discipline” and “no more deficit spending”, but then added new debt at OVER FOUR TIMES THE RATE of the Republicans they criticized.

The Democrats are such shameless, boldfaced LIARS that it is despicable.

ITguy on August 27, 2013 at 12:19 AM

The numbers are being manipulated. They aren’t real. What exactly needs to be updated?

sharrukin

The number of days they’ve been stuck on the same number. It was 56 straight days on July 15. It’s now 98 days straight.

xblade on August 27, 2013 at 12:56 AM

there is no debt limit…

equanimous on August 27, 2013 at 12:57 AM

This sudden ‘adjustment’ from late November to October is nicely timed to support ANOTHER MASSIVE DEBT ceiling increase of MORE than 2 trillion as desired by Obama and BOEHNER!

Look for Boehner and the Democrats to push through a MASSIVE continuing resolution, and debt ceiling increase, to nicely take them BEYOND the 2014 election!

IF what I am suggesting comes to pass, there will be no choice but to start a THIRD PARTY as BOTH the RINO’s and the Democrats are too corrupt to ever fix! People that claim this will leave the Republican party in the wilderness will be CORRECT. Of course, WHAT is the point of voting in continuing to support these valueless big government spenders?

Freddy on August 27, 2013 at 2:11 AM

is that when they’re going to start counting again?

Lost in Jersey on August 26, 2013 at 9:04 PM

That is when the government pension funds that they loot/borrow in order to pay the bills (this is what they mean when they say “emergency measures”) runs dry. At that time, they will have to only pay what they take in.

I say let it stand that way. The government won’t “Shut Down”. It will simply only be able to do 2/3rds of what it is doing now. I say make them choose a third to not do and then make them live within their means. :)

Theophile on August 27, 2013 at 2:56 AM

This childish, disgusting game has no end.

rplat on August 27, 2013 at 7:55 AM

Didn’t hear the speech but was it lost in the weeds somewhere that he told those scholars that this debt would be their inheritance one fine day? I was wondering what had happened to the debt clock since the repubs had used it at their convention as a prop. Must be the only time anyone pays attention to it.

Kissmygrits on August 27, 2013 at 9:26 AM

I got a question for Bohner

So Bohner “is this the debt ceiling increase were we will actually fight for real changes and reduction?”

Ohhh no its next time OK I see we can’t shut down the gov I see we will be blamed hmm and when it all collapses we will be blamed as well because well we voted in the increase and if we don’t we will be blamed because ohh I see we have no leadership to defend or even understand our position. Ok

C-Low on August 27, 2013 at 10:37 AM