In negotiating last year’s “debt dereliction deal,” U.S. President Barack Obama figured that $2.4 trillion in new deficit spending would be enough to last the federal government through the spring of 2013 (i.e. through the November elections).
According to new projections from the Bipartisan Policy Center (ya down with BPC?), though, the federal government is now projected to bump up against its $16.4 trillion debt limit in late November – several months ahead of schedule.
“Congress, the administration and outside analysts believed that (last August’s deal) would allow federal borrowing under the limit until well into 2013,” BPC analysts wrote last week. “Due to unexpected circumstances … that belief appears increasingly likely to have been misguided.”
What’s driving this dramatic ramp-up in deficit spending?
Sluggish tax receipts … and the government’s increasingly reckless refusal to live within its means.
For the fourth consecutive year, the federal government will spend at least $1 trillion that it does not have in 2012, according to the Congressional Budget Office (CBO). All of this spending has taken place without the benefit of an annual budget – something Congress hasn’t bothered to pass in over 1,000 days. It also doesn’t include the trillions of dollars in lending and money-printing our Federal Reserve has engaged in.
As it stands now, the federal government is $15.4 trillion in debt – or $136,158 for every taxpayer in America.
Anyway, remember those numbers when the mainstream media starts bitching and moaning about how an election year debate over the debt ceiling is bad for our nation’s economy.
It’s “the fall that’s gonna kill you …”