Democrats Push to Raise Federal Debt Ceiling
Senate Plan Increases Treasury Borrowing Limit to $14.3 Trillion
The current national debt limit, $12.4 trillion, is expected to be exceeded within the next month. Of the $12.4 trillion, over $7.5 trillion (54 percent of the nation's GDP) is borrowed from foreign governments and private investors. The Senate plan will increase the Treasury's legal borrowing limit to $14.3 trillion - which is about the size of our entire economy.
In August of 2009, Treasury Secretary Timothy Geithner sent a letter to top lawmakers asking Congress to move as soon as possible to increase the nation's debt ceiling. Geithner wrote, "It is critically important that Congress act before the limit is reached so that citizens and investors here and around the world can remain confident that the United States will always meet its obligations."
Because of legislation passed in 1917, Congress is required to set a limit for the national debt and must vote to raise it before that limit is exceeded. Raising the debt limit is always a tough vote for the majority party, and not surprisingly, some Republicans are voicing their opposition to the proposed plan. Rep. Tom Price (R-GA), leader of the Republican Study Committee in the House said, "It's a clear sign that we've got a federal government that is out of control from the fiscal standpoint. I don't see how anyone can vote in favor of an increase in the debt ceiling and say they're doing it in a responsible way."
Coinciding with the Senate vote to raise the national debt limit, President Obama's official budget plans will be released after his State of the Union Address next week. Apparently the President plans to announce "historic reductions" in some parts of the federal budget. Unfortunately, those reductions may seem minuscule compared to the administration's current and future plans to increase government spending.
Sources:
Senate Discussing a Raise in National Debt Ceiling to Above $14 Trillion
Obama Hopes to Change the Subject
Lawmakers Urged to Raise Nation's Debt Limit
Democrats to Lift Debt Ceiling by $1.8 Trillion
Published by Kim Linton
Kim Linton began her writing career in 2001 as a contributor for Ministrymaker Magazine. Kim's work has since been published on a variety of websites including Woman's Day and Intel, and featured on several... View profile
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- The current national debt limit is expected to be exceeded within the next month.
- The Senate plans to increase the nation's debt ceiling by $1.9 trillion.
- The plan will increase the Treasury's legal borrowing limit to $14.3 trillion.
62 Comments
Post a CommentRaising the debt ceiling allows America to spend while Americans go broke.
ugh
Sounds like a scary situation to me.
I can not image what we are doing to our chiildren's and our grandchildren's future. We're mortaging tomorrow to pay for today. Very short sighted. This is, to me, most dangerous ground Kim. Thank you for bringing this to our attention.
BTW If you notice. These are all the same indicators right before the great depression and runaway inflation in pre-Hitler Germany.
If only I could print money, I'd have a lot more fun. That ability is wasted on the feds. I'm far more frugal.
I need to raise my personal ceiling as well...
Hi Kim,
It only appears to be getting worse and worse and worse...... Oh, what a country we are leaving for our children!
Hot topic!! Sixty comments, wow! Can't they see the US is totally bankrupt? Unbelievable, isn't it? Good article, Kim.
Well done. Good reporting.I love the fact that there's no COLA for Social Security recipients but an increase in pay for Washington.