Are We About To Have Another Debt Ceiling Crisis?  As In This Week?
James Bianco
September 2, 2011

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It was just one month ago today (August 2) that the great debt ceiling debate was “solved” with a deal to raise the limit by $500 billion. However, as the chart below shows, the immediate $500 billion ceiling hike on August 2 (red line) has almost been reached. As of tonight (September 2), the U.S. only has about $32 billion more in borrowing authority until the month old debt ceiling hike is reached (green line). Based on current projections, this is about two weeks away, much sooner than was projected 31 days ago (it was hope the August 2 increase of $500 billion increase would last until the super-committee’s Thanksgiving deadline). Total debt outstanding (blue line), which includes debt not subject to this limit (explained in green below), surpassed the debt ceiling today.

As noted on the chart below, the President can request a further increase of $500 billion at any time. Only passage of a “no vote” could stop him. So, we could have the President requesting another hike in debt ceiling hike again as early as next week and have yet another vote that could shut down the Government. In this case, if the Congress did nothing, the hike goes through. But to not hold a “no vote” on this contentious issue would not be politically wise So, theoretically if a “no vote” were to pass, admittedly a long shot, the Government could shut down in the next few weeks.

If nothing else, a President with an approval rating that has been crushed since the August 2 deal (down 10% to 39%, Gallup) would not want to repeat this exercise five weeks later, and take yet another round of brickbats and a possible crisis over watching a “no vote” counted with the threat of shutdown again hanging in the balance.

The fun just never stops!

JB

Category: Politics, Think Tank

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

4 Responses to “Are We About To Have Another Debt Ceiling Crisis?”

  1. ilsm says:

    The “loyal opposition’s” strategy is to ruin this president’s country.

  2. Ducksfeet54 says:

    It does not matter whether or not they raise the debt ceiling, the US is bankrupt and nothing they do now will save them from the inevitable which is total economic collapse of the country which will either be before or after the total collapse of there European counterpart and then comes the greatest depression every seen which will serve the globalist, making them come on the seen and save us from total ruin but we must abide by there rules and become there serfs for ever. This has been there plan going back years and it is getting close to the end of democracy as we know it.The next leg in there big plan will be to execute population control which will take on many faces from wars,decease,starvation, and anything else they can throw at us.The game is total control.

  3. MayorQuimby says:

    Hahaha….keep it up KIDS. You are destroying yourselves with your delusions of pain free solutions.