House seeks debt limit increase to $10.2 trillion

[Prada]

http://www.rawstory.com/news/mochila..._03142008.html

WASHINGTON (Reuters) - The government's debt limit would be raised to $10.2 trillion under a budget plan for next year approved by the U.S. House of Representatives.

The House's fiscal 2009 budget, which passed on Thursday, would increase U.S. borrowing authority by $385 billion from the current limit of $9.815 trillion, according to the House Budget Committee.

The Senate on Friday passed its own version of a fiscal 2009 budget that did not address the question of raising federal borrowing authority.

The two chambers in coming weeks are expected to try to work out their differences and then pass a budget for next year that would spend $3 trillion while projecting a deficit in the range of $340 billion to $366 billion for the year.

It is not clear whether negotiators will adjust the House's proposed $10.2 trillion debt limit.

Large annual deficits have caused the federal debt to climb steeply since President George W. Bush took office, rising from $5.6 trillion in January, 2001, to $9.3 trillion on Wednesday.

Congress last approved an increase in Washington's borrowing authority last September, increasing the credit limit by $850 billion.

Some lawmakers recently have estimated that the Treasury Department could bump up against the current $9.815 trillion limit either shortly after November presidential and congressional elections or early next year, depending on revenues and economic performance.

(Reporting by Richard Cowan)

Source: Reuters US Online Report Top News

[SMCengineer]

This is just gonna get worse and worse. The sad thing is this used to be a shameful vote for Congress now it's just an ordinary occurrence.

[Tock]

They may as well raise it to 50 Trillion. It's gonna get there sooner rather than later, assuming the country doesn't go bankrupt . . .


Chances are, the only way they're gonna be able to pay for this, is if they devalue the dollar. Ya, make it worth 1/10 or 1/100 of what it is now. In that case, you better have your cash in Euros or gold.

[39+1]

I just had my last bought with understanding the relationship between the economy, debt, and the GDP.
This time thru i think i have the best understanding so far of "it"!
as long as we have at least 4% growth and not more than 17% growth a year debt is good. or at least not as bad as i thought.

[SMCengineer]

I just had my last bought with understanding the relationship between the economy, debt, and the GDP.
This time thru i think i have the best understanding so far of "it"!
as long as we have at least 4% growth and not more than 17% growth a year debt is good. or at least not as bad as i thought.

You do realize that GDP takes into account all government spending, right? Government spending is more than a third of GDP. That includes deficit spending, which is just borrowed money that gives a false sense of prosperity and growth.