U.S. debt jumps a record $328 billion in one day — tops $17 trillion for first time.

government spending(1)

U.S. debt jumps a record $328 billion — tops $17 trillion for first time

By Stephen Dinan

The Washington Times

Friday, October 18, 2013

U.S. debt jumped a record $328 billion on Thursday, the first day the federal government was able to borrow money under the deal President Obama and Congress sealed this week.

The debt now equals $17.075 trillion, according to figures the Treasury Department posted online on Friday.



The $328 billion increase shattered the previous high of $238 billion set two years ago.

The giant jump comes because the government was replenishing its stock of “extraordinary measures” — the federal funds it borrowed from over the last five months as it tried to avoid bumping into the debt ceiling.

Under the law, that replenishing happens as soon as there is new debt space.

In this case, the Treasury Department borrowed $400 billion from other funds beginning in May, awaiting a final deal from Congress and Mr. Obama.

Usually Congress sets a borrowing limit, or debt ceiling, that caps the total amount the government can be in the red.

But under the terms of this week’s deal, Congress set a deadline instead of a dollar cap. That means debt can rise as much as Mr. Obama and Congress want it to, until the Feb. 7 deadline.



Judging by the rate of increase over the last five months, that could end up meaning Congress just granted Mr. Obama a debt increase of $700 billion or more.

Republicans initially sought to attach strings to the debt increase, but surrendered this week, instead settling on a bill that reopened the government and included some special earmark projects, but didn’t include any spending cuts.

Democrats insisted that the debt increase be “clean,” meaning without any strings attached. They say the debt increase only allows Mr. Obama to pay for the bills he and Congress already racked up, and that it doesn’t encourage new spending.

Get your fiscal house in order: China warns US as superpower expresses concern for $1.3tn of investments

china

Get your fiscal house in order: China warns US as superpower expresses concern for $1.3tn of investments

‘Clock is ticking’, says Chinese minister, as US fails to break deadlock over government shutdown and fast-approaching ‘debt ceiling’ deadline

MONDAY 07 OCTOBER 2013

China, the biggest foreign creditor of the United States, has waded into the American budget crisis, warning Congress that it must resolve the political impasse over the debt ceiling without further delay.

The Chinese Vice Foreign Minister, Zhu Guangyao, told America’s deadlocked politicians on Monday that “the clock is ticking” and called on them to approve an extension of the national borrowing limit before the federal government is projected to run out of cash on 17 October.

“We ask that the United States earnestly takes steps to resolve in a timely way the political issues around the debt ceiling and prevent a US debt default to ensure the safety of Chinese investments in the United States,”  Mr Zhu told reporters in Beijing. “This is the United States’ responsibility,” he added.

The American government entered its seventh day of shutdown on Monday, following the failure of Congress to approve the national budget a week ago. And there was little sign of progress on the still more crucial issue of the fast-approaching “debt ceiling”  deadline. Yet rather than indicating  a willingness to negotiate, the Republican Speaker of the House of Representatives, John Boehner, stated on Sunday that it was “time for us to stand and fight” over the budget. He added that a default was “the path we’re on”. American stock markets opened down in response to the belligerent comments yesterday, with the S&P 500 Index of leading shares shedding 0.5 per cent.

In September 2008 China eclipsed Japan to become the biggest single foreign creditor of the US federal government. The US administration estimates that the China government holds at least $1.3 trillion of its bonds. The total could be higher because Beijing is known to hold American debt through intermediaries. And, in total, the Beijing authorities have $3.5trn of dollar-denominated assets, which would also be hit hard in the event of a default.

These vast foreign exchange holdings are a by-product of China’s closed financial system and persistent current account surplus, which means that most foreign currency that enters the country accumulates with the central bank. The central bank then invests the money in normally “safe” dollar assets. The vast dollar reserves are also a legacy of China’s policy in recent decades of artificially holding down the value of its currency, the renminbi, in order to boost the overseas sales of its politically influential export industry.

However, economists have criticised the popular idea that China could exert political or economic leverage over Washington by threatening to sell its dollar investments, since such a drastic shift would ultimately serve to undermine the paper value of Beijing’s own vast investment portfolio. Nevertheless, China’s creditor position and its status as the world’s second largest economy gives its voice some authority in Washington and Mr Zhu made it clear that private representations had already been made. “The US is clearly aware of China’s concerns about the financial stalemate and China’s request for the US to ensure the safety of Chinese investments,” he said yesterday.

Since the global financial crisis, which led to a sharp depreciation in the value of the dollar against the renminbi, the authorities in Beijing have been concerned about the fact that so much of their national reserves are held in the form of the American currency. China has been promoting the idea of a new reserve currency to replace the greenback, with some analysts suggesting that the renminbi could one day take its place.

Mr Zhu stressed that it was vital, not only for China but the wider global economy, for America to resolve its budget impasse. “Safeguarding the debt is of vital importance to the economy of the US and the world,” he said. Referring to a similar deadlock in 2011, which led to a downgrade of the US AAA credit rating by the Standard & Poor’s agency, Mr Zhu said: “We hope the United States fully understands the lessons of history.”

The concerns over the stability of the dollar come at a time of geo-political flux. Barack Obama has sought to “pivot” his foreign policy to Asia to counter China’s growing military influence. But the shutdown has forced the US President to cancel his visit to Asia this week to attend a summit.

Why is this man still smiling? He has been caught lying at every turn.

Why is this man still smiling?   He has been caught lying at every turn.  He was completely destroyed by Romney in the debate.  He has failed at everything and I mean everything.  What he has done to healthcare is disastrous.  He promised an Arab Spring what he gave us is a nuclear winter of global Islamic jihad.   So why is he still smiling?

But wait!  Now  we have news of his most breathtaking irresponsibility.   He low balled his estimate for the deficit this year by half a trillion dollars!  To underscore how astounding this is the Washington Times said: 

“In May 2009, President Obama released his updated budget estimates, which projected that the federal deficit for fiscal year 2012 would be $557 billion. The Congressional Budget Office now says that the deficit for fiscal year 2012 (which ended on September 30) was about $1.1 trillion — or about twice what Obama said it would be. In other words, Obama’s estimate was off by more than half a trillion dollars.

To put this colossal error into perspective, at the time that Obama was elected, the United States had never once had a deficit as large as Obama’s error would prove to be. Our largest deficit as of November 4, 2008 (the day that Obama beat John McCain) had been $459 billion. Since 2008, we’ve now run up more than $1 trillion in deficit spending for four consecutive years, totaling more than $5 trillion.”

How can anyone bungle the economy that bad?  No one can point to a single benefit from his presidency.  Everyone will feel the damage of his arrogance for years to come.  Yet, there he is undeterred and unmoved.  Why?  Because he believes he is going to win no matter what he says or does.

He knows that he owns the vilest political confederacy ever inflicted on the United States.  His confederacy includes, corrupt unions, a compliant news media, Islamic leaders, foreign money and the most dangerous gang of all:  Americans addicted to government handouts.

 There are good signs however.   The debate broke the hedge around Obama.   According to John Nolte, “In 2008, President Barack Obama won the independent vote over John McCain by a margin of eight points, 52-44. This morning, a new Battleground Poll has Mitt Romney massacring Obama among indies by a whopping 16 points, 51-35.

Then he shows us the how the lap dog can media can still spin this in Obama’s favor. Polls:  “That’s a 24-point swing among independents since 2008, a group that makes up anywhere from a quarter to a third of voters, and yet Battleground still has Obama in the lead 49-48…?

But if I’m skeptical of those bottom-line numbers, our journalist overlords who have chosen to palace guard instead of question will declare me a “truther.”  The Battleground Poll also shows an 13 point enthusiasm gap in Romney’s favor. Only 73% of Obama’s supporters are “extremely likely” to vote, compared to 86% of Romney’s supporters.

Obama owns the vilest political confederacy ever inflicted on the United States.  His confederacy includes, corrupt unions, a compliant news media, Hollywood, Islamic leaders, foreign money and the most dangerous gang of all:  Americans addicted to government handouts.

I am as giddy as you that Obama was finally exposed before 67 million people for the incompetent leader he is but we still need a miracle.   Our nation is not facing a takeover; she was taken over 4 years ago.  We are fighting to get our freedom back. This election can be stolen and manipulated.

It will take the most intense effort ever.  Let every preacher understand that your silence and inaction at this crucial time will be remembered.   Under normal circumstances we should not be political, but these are not normal circumstances.  Obama will drive the church underground and he will turn America into a wasteland that is controlled by global powers.

What do we need to do to stop him? 

  1. Pray for the spirit of deception over the nation to be obliterated in Jesus’ name.
  2. Vote and take someone to vote with you.  Do not be afraid to challenge believers about their vote.  If they are voting for Obama ask them how that is possible.
  3. Talk to your pastor. If he is still on the fence respectfully disagree.  Remember the quote from Bonhoeffer “Silence in the face of evil is evil.  God will not hold us guiltless.  Not to speak is to speak.  Not to act is to act.”  Tell your pastor that you and many others will back him all the way.
  4. Understand that not voting is a vote for Obama.

Just when I thought that I had seen the worst of Obama, he turns around and does this…

Just when I thought that I had seen the worst of Obama, he turns around and does this…

The list of his failures is endless. The emptiness of his ideas are epic.  Yet, for all the disappointments and shock that I have experienced with Obama nothing prepared me for the moment when he looked into the camera on 60 Minutes and told a cold-blooded lie.  “I am only responsible for an increase of 10% of the national debt.” I am straining to stay calm writing this.

He added 5.7 Trillion dollars to the debt in 4 years!  He added more than all presidents before him combined.  The national debt is $16 trillion!  Your child owes $66,000.  That is higher than Spain, Portugal and Greece!

His callous lie demonstrates the depth of his ignorance about the greatest danger Americans face.  It is a greater danger than global warming or foreign enemies.   Worse, it shows his complete disregard for Americans.

Wait, there is more…under his current plan, already voted in by the Democratic Senate the debt will increase to $25 Billion next year.   That is when our debt will be greater than what our economy produces.  Another word for that is bankruptcy.

It gets worse.  Listen to  Senator Jeff Sessions, ranking member of the Senate Budget Committee:

“This is a grim landmark for the United States. The gross debt of our federal government will, for the first time, surpass $16 trillion. That’s more government debt per person than Portugal, Italy, Spain, or Greece. Yet the President seems strangely unconcerned. His budget, which received zero votes in the House or Senate, would add another $66,000 in debt for every American household. And the President’s majority in the Senate, which is required by law to produce a budget plan every single year, has refused to do so for more than 1,200 days.

“We are on a dramatically unsustainable path. Forty cents of every dollar we spend is borrowed. Systemic factors, such as our aging population, make this the most serious financial challenge our nation has ever faced. This year will mark the fourth straight deficit in excess of a trillion dollars. In the last 3 months, more people have been permanently been added to the disability rolls than have found jobs. The IRS is mailing billions of dollars in tax credits to illegal aliens, and the USDA is partnering with Mexico to boost enrollment in food stamps. Washington is disconnected from reality.

“But this crisis cannot be ducked. By failing to outline any serious plan for the financial future of this country, Democrats who run the Senate and the White House have no basis on which to ask to be kept in their majority. The nation is in desperate need of strong executive leadership to end the financial chaos, restore discipline to government, and lead us to an economic renaissance.”

Obama does not care about you, your future, your children or their future.  He could not even remember what the national debt was when he was asked on the David Letterman show.

Let me repeat one part…the man who said he only responsible for 10% of the increase in debt is, among other things, “mailing billions of dollars in tax credits to illegal aliens, and the USDA is partnering with Mexico to boost enrollment in food stamps.”

Billions around the word live under tyrants and they cannot do anything about it.  We can and we must!  We have this one last gasp.  We can vote this tyrant out.  Think of it, in one more year the debt will stand at $25 trillion…what will it be if this man gets 4 more years?