Having won reelection, Bush administration gets to work on increasing the debt ceiling.

Gotta give them credit, they don’t waste any time “improving” things once that pesky election is over with. Seems the Federal Government is about to bump into the debt ceiling, again, so the White House is asking that it be raised, again.

The government hit the current debt ceiling of $7.384 trillion on Oct. 14, forcing Treasury to begin a series of bookkeeping maneuvers to keep financing the government’s normal operations without breaching the debt ceiling. But Treasury Secretary John Snow has warned that those special measures would last only until mid-November.

The Treasury Department’s actions have included reducing the amount of debt in government trust funds to free up room for further borrowing from the public. The nonpublic debt is then replaced in the trust funds once the debt ceiling is increased along with any lost interest payments.

Republicans have proposed that the debt ceiling be raised by $690 billion to $8.074 trillion, an amount that would get the government through next September, when the 2005 budget year ends.

The need to raise the debt ceiling reflects the record budget deficits of the past two years. The deficit for the 2004 budget year, which ended Sept. 30, was an all-time high of $413 billion, surpassing the old mark, in dollar terms, of $377 billion in 2003.

The last raise was back in February 2003 when the limit was “only” $6.4 trillion and prior to that it was June of 2002 and a limit of $5.95 trillion. Bush supposedly has a plan to cut the deficit by half by 2009, but that’s not very likely if he keeps making requests to raise the ceiling an annual event as it has been so far during his time in office. Should we place bets now on if he’ll ask to raise it again come next September?

Discovered via Mac’s blog who wryly notes that it’s a good thing Bush isn’t playing into bin Laden’s plan to bankrupt the U.S..

9 thoughts on “Having won reelection, Bush administration gets to work on increasing the debt ceiling.

  1. Isn’t it great that he is landing on his feet and running fast after the elections? Ya gotta love’em!

    So what do you all think the debt will get to by the end of his second term? I’m guessing almost 15 trillion. I wonder what the dollar will be worth come that day…

    A friend at work predicts a draft by 2007. Such fun!

  2. Ya right, but 2009.  When the next president is in office so that if it doesn’t work or it’s another broken promise it can be all the fault of the new president who botched it up in one year after four years of some progression toward cutting the budget in half.  Oh please… Do I look like I wear a toilet seat as a hat?

  3. Wow what a genius way of balancing your finances, I am going to have to run this one by my bank.

    Me: Yes I know I am up to my overdraft limit, but I’d like to borrow another £1500

    Bank: Ah certainly lets just increase your overdraft limit by £3000 and you write us a cheque for £1500 that should do it!

    The only flaw in my plan being, my bank seems to work on some mad theory of ability to repay when offering credit, unlike the US economy.

    To the Americans who didn’t vote for the Bushtard, you have my sincere sympathy, to those who did vote for him well words fail me…..

  4. Of course he dives right in. When I read an article on the website of ‘Der Spiegel’, the largest German newsweekly, which was entitled ‘Hoping for a tamer Bush II’ I simply gagged. What fools.

    This from yahoo news:

    President Bush (news – web sites) ran forthrightly on a clear agenda for this nation’s future, and the nation responded by giving him a mandate,” Vice President Dick Cheney (news – web sites) said as he introduced Bush at the victory celebration.

    “This is going to be a more creative and more controversial term than the first term,” former House Speaker Newt Gingrich said.”

    MORE controversial? Geez. I was just getting used to his smooth touch, and now this!

    Hey Les, any possibility of including the blockquote option in the row of format buttons above the entry window?

  5. Der Spiegel? Isn’t that mirror? My german is extremely poor as I’m teaching myself, but I’ve always thought it wise to learn an extra language or two or three….

  6. Ingolfson, I’ll have to look into that. The buttons on the entry submission page can be added to, but I think the ones here are hard coded as it’s a plugin. I’ll check the plugin though and see if I can’t hack it enough to add it in.

  7. Neodromos, you’re right, it means mirror. A real good magazine. They also have a very good website which has become my favorite online news source.

    They have an

    They now have an English digest version on their weEnglish digeston their web site too, though obviously you won’t learn German by reading that wink

    As for learning new languages – right on. I have made the resolution to learn one language fluently every ten years. I’m working on French right now, after that, either Russian or Spanish.

  8. Ingolfson, good luck with Russian.  I found it much harder to learn than German, French or Hebrew.  I was planning to start learning Japanese at one point, but then got busy using my German and French instead, and never went back to it.  Now I need refresher courses in just about everything except Pig Latin. grin

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