Friday, February 17, 2012

Trouble in Obamaland: U.S. May Hit Debt Ceiling Before November Election

President Obama held out last August for a debt increase that would take him past the November 2012 election. Obama didn't want the voters thinking about his gargantuan deficit spending right before election day. However, President Obama's inability to curtail spending may put him in that very situation anyway. A new study has predicted the government will run out of money again in mid-October.
The United States Department of Treasury will reach the the statutory limit it is allowed to borrow money before election day, according to a new study by Sen. Rob Portman, R-Ohio., former director of the U.S. Office of Management and Budget.

“Following the contentious debt ceiling last August, President Obama promised that he would take action to address the country’s fiscal crisis. He has failed to do that," Portman said. "In fact, his new budget increases spending and projects that Washington will be hitting the debt ceiling again in mid-October – burning through a $2.1 trillion debt limit increase in just over 14 months."

Portman's office notes that according to Obama's budget, total debt subject to the statutory debt will reach limit will reach $16.334 trillion by September 30, 2012. This is just $60 billion below the 16,394,000,000,000 debt limit. Since the federal government is adding to the national debt at a rate of $132 billion a month, the debt ceiling is on schedule to be reached by October 15, 2012.

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