Obama Will Ask for $1.2 Trillion Increase in Debt Limit

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PostTue Dec 27, 2011 5:55 pm » by Rydher

Reuters: Obama Will Ask for $1.2 Trillion Increase in Debt Limit by Week’s End

Back in August, Congress passed a deal to raise the nation’s debt ceiling after a highly contentious debate between the two parties. Back then, the fight was over about a $2 trillion increase in spending. So imagine what might happen when Congress returns from vacation to find the president has asked for another $1.2 trillion increase in the limit.

According to Reuters, that’s exactly what Obama is getting ready to do:

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.

Under the new budget, Congress can only vote to block the debt-ceiling extension with a disapproval resolution. Lawmakers have 15 days within receiving the request to vote down the debt limit increase.

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

Also of note: the supercommittee launched at the time of the debt deal that was tasked to find at least $1.2 trillion in cuts failed in late November. The minimum amount the committee was supposed cut spending by is, coincidentally, the same amount the president is set to ask Congress to increase the debt limit by.

The last time the debate came up, many Republicans (those who didn’t acquiesce and vote for the deal) noted that spending would not decrease after passing the agreement. Chief among them was Sen. Tom Coburn (R-OK).

“In spite of what politicians on both sides are saying, this agreement does not cut any spending over 10 years. In fact, it increases discretionary spending by $830 billion,” he said at the time.

“I voted against this agreement because it does nothing to address the real drivers of our debt. It eliminates no program, consolidates no duplicative programs, cuts no tax earmarks and reforms no entitlement program. The specter of default or a credit downgrade will still hang over our economy after this deal becomes law.”

It looks like he was right.

Source: http://www.theblaze.com/stories/reuters-obama-will-ask-for-1-2-trillion-increase-in-debt-limit-by-weeks-end/

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PostTue Dec 27, 2011 6:16 pm » by Mrmcnuggets

The only thing that sucks about this is,

what would happen if we do not increase the debt ceiling? Would the market truely collapse due to the fact that there is more debt, and more money(debt) in circ. than what can be covered?

There is no second thought about it, that if the U.S collapses again, the rest of the world will plunge (if not entirely,) surely enough to cause an impact that is not rich, and even an impact to them as well.

We The People need to devise our own monitory system, that is accepted in the same way the dollar is today. There is law (correct me if I am wrong.) that no other company may print federal(KEY WORD) reserve notes, or monitory notes.

Though wtf is the federal system going to do if we let them keep their dollars, and we the general public devise a new method of economics? Like trading.. :idea:
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PostTue Dec 27, 2011 6:28 pm » by Rydher

This may be simplistic but my understanding of how this works is that all current obligations will and have to met. There just can't be any new spending and borrowing. This whole political mind fuck of if we don't increase the debt limit, the US will default is bullshit. There is a clause in the 14th Amendment essentially says that the feds cannot renege on debts.

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