could the debt ceiling still be reached before Nov 2012?

[cindy25]

I was just thinking; the Obama plan is for March 2013, but if the stock market collapses, or economy slows, or interest rates rise it could easily run out August 2012.

just a 1% rise in interest would cost the feds a trillion a year.

and how much would another 1-2% increase in unemployment cost?

or a 5000 point drop in the Dow?

[MJU1983]

I think they will hit it again before the election which will be comical.

[headhawg7]

Yes...it could

[DamianTV]

We are going to get hit hard by Inflation long before the Doomsday Date. The Raise in the Debt Ceiling with no real solutions being implemented pretty much guarantees that.

Our current Rate of Inflation, according to Ron Paul looking at stats calcluated by our LAST method of determining the CPI, shows that the current Inflation is at about 9% per year.

[FreedomProsperityPeace]

They're beating the drums on Syria pretty hard. That could send us up against the ceiling quick.

[Teaser Rate]

No.

The only events which could trigger enough additional spending to reach the new ceiling before November 2012 would be have to be dramatic enough to make the issue seem insignificant.

[DamianTV]

How many times has the Debt Ceiling already been raised in the last 30 years? Something like 67 times? Yeah, there is "no possible way" our Government could spend that much with $900 Hammers and $1200 Toilet Seats. Yeah, thats right, reaching the new Debt ceiling will never ever ever never ever happen. At least until next month when the price of those Toilet Seats go up for some inexplicable reason.

/sarcasm

[Kelly.]

fed can [will] buy government debt as to keep the rates low enough to get through the next elections.

[ctiger2]

Yes...it could

and it will. Our debt has the snowball effect going on.

[specsaregood]

How many times has the Debt Ceiling already been raised in the last 30 years? Something like 67 times? Yeah, there is "no possible way" our Government could spend that much with $900 Hammers and $1200 Toilet Seats. Yeah, thats right, reaching the new Debt ceiling will never ever ever never ever happen. At least until next month when the price of those Toilet Seats go up for some inexplicable reason.

/sarcasm

Don't use such outdated comparisons.
The new examples are $900 for $7 control switches.
http://www.ronpaulforums.com/showthread.php?305894-Who-would-pay-900-for-a-7-light-switch

[pcosmar]

No.


They are already borrowing, which is not unexpected.
Gov't will borrow $72B in debt auctions next week
http://finance.yahoo.com/news/Govt-will-borrow-72B-in-debt-apf-3907839998.html;_ylt=ApnWg3hYNTKNG4M1ZmgSM5m7YWsA; _ylu=X3oDMTE1MXRtb3JiBHBvcwM2BHNlYwN0b3BTdG9yaWVzB HNsawN1c2dvdmVybm1lbnQ-?x=0&sec=topStories&pos=3&asset=&ccode=

I expect it will not take long to spend and borrow and spend and borrow,,,,,

:(

[ghengis86]

Stop calling it the debt ceiling; it's the debt target.

[pcosmar]

Stop calling it the debt ceiling; it's the debt target.

"And thirdly, the code is more what you'd call "guidelines" than actual rules.
Welcome aboard the Black Pearl, Miss Turner . "

http://www.youtube.com/watch?v=b6kgS_AwuH0
;)

[Zippyjuan]

For 2011 the projected deficit is $1.3 trillion. To get to $2.4 trillion (the newly aproved ceiling) they would nearly have to double that over the next year to go past it before a year from now (November 2012 is 15 months from now). It could happen, but I highly doubt it.

[Pants]

Considering there are at least several trillion dollars in bad FHA mortgage notes out there, or FHA loans that potentially could go in default, we can reach that debt cealing in 6 months. I take it the goverment is assuming these people would be able to locally find jobs and stay in their homes within next few months.

[DamianTV]

Dont forget about the Education Finance Bubble. It is as big, if not bigger than the Housing Bubble.

If people dont have jobs, how can they afford to make payments on their Student Loans?

[YumYum]

Dont forget about the Education Finance Bubble. It is as big, if not bigger than the Housing Bubble.

If people dont have jobs, how can they afford to make payments on their Student Loans?

By going back to school and getting more loans.

[DamianTV]

Oh yeah! I forgot. Spending more to save having to pay is always the best option. Well, according to some people in office...

[Pants]

The student loan thing is not going to be an immediate factor, maybe 3 to 5 years down the road. It will have to work its way though the system, and there are generous deferment options that can keep the borrower not having to pay it back for quite a long time. I'm afraid the student loan bubble won't be realized for quite sometime.

[DamianTV]

The student loan thing is not going to be an immediate factor, maybe 3 to 5 years down the road. It will have to work its way though the system, and there are generous deferment options that can keep the borrower not having to pay it back for quite a long time. I'm afraid the student loan bubble won't be realized for quite sometime.

/agree

I dont think that a Student Loan Bubble will be a Cause, like the way the Housing Bubble is blamed as the Cause of this current Financial Disastrophy, but I think the Student Debt Loan Bubble will pop as the result of something else massive, like a US Default. Hell, by that point, it wont even make a By-Line in the local paper.

[Elwar]

The first phase is to raise it $900 billion.

They borrowed $268 billion yesterday with $72 billion more to be borrowed this week.

The question is, will the debt ceiling be reached by the end of the month.

[cindy25]

they just borrowed $239 billion in one day, with another $72 billion next week; at this pace $2.4 trillion would last 8 months.

http://www.washingtontimes.com/news/2011/aug/3/us-eats-most-debt-limit-one-day/

[Exponent]

they just borrowed $239 billion in one day, with another $72 billion next week; at this pace $2.4 trillion would last 8 months.
But as Elwar noted, the full $2.4 trillion increase won't come into effect until November. Until then, it's only $900 billion. What happens if we hit that before the second-phase increase to $2.4 trillion goes into effect? Oops.

[cindy25]

almost impossible for $900 billion to last past Thanksgiving. $350 billion just in August.

[sailingaway]

zerohedge had an interesting comment last night asking why a note on the treasuries info projected only something like a $400 billion debt ceiling raise and about 4 months until the next debt ceiling war. He was hoping it was a typo. If it is being raised in stages, that might explain it.