Milestone: U.S. to Hit $16.4T Debt Limit Monday
The U.S. Treasury Department announced today that the U.S. will reach its $16.4 trillion debt ceiling on Dec. 31, 2012, unless immediate steps are taken to avoid this grim milestone.
Treasury Secretary Timothy Geithner in a letter to congressional leaders Wednesday suggested his department use certain accounting measures that would save $200 billion in government spending, thereby keeping the government within its borrowing limit until at least February, 2013.
“The government is facing a crunch on the debt ceiling because the issue has become ensnarled in talks to avoid some $600 billion in tax hikes and spending cuts due to begin in early January. Failing to raise the debt ceiling could cause the government to default on its debt,” Reuters notes.
“To cut government spending and delay bumping up against the debt ceiling, the Treasury will suspend issuance of state and local government series securities — known as ‘slugs’ — beginning on Dec. 28,” the report adds.
Surprisingly enough, Treasury also said it would stop investing in government retirement funds.
“These extraordinary measures … can create approximately $200 billion in headroom under the debt limit,” Secretary Geithner’s letter reads.
The letter also notes that should the U.S. go over the so-called “fiscal cliff,” a combination of tax increases and across-the-board spending cuts set to take effect next year unless Congress agree on a budget plan, that would actually give Treasury more time to avoid exceeding the debt limit.
“Treasury will provide more guidance regarding the expected duration of these measures when the policy outlook becomes clearer,” said Geithner.
Because suspending the issuance of “slugs” has been used before to help the U.S. government keep within its debt limit, some analysts are hopeful it will work again.
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The Associated Press contributed to this report. Featured image Getty Images.
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Comments (76)
brigott
Posted on December 26, 2012 at 11:20pmIt’s a Bug’s Life.
We are the ants.
Governments spenders are the grasshoppers.
Let’s build a bird!
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Brother Winston Smith
Posted on December 27, 2012 at 1:30amLove to. But many ants… still think we can “reform” the “better evil” grasshoppers.
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PA PATRIOT
Posted on December 27, 2012 at 8:56amUnfortunately
The grasshoppers have reached epic numbers and we are subject to a plague of Biblical proportions.
Time to pray or not comply.
I choose the latter.
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JacquesChirac
Posted on December 27, 2012 at 11:24amBrother,
We need to reform many ants first. Remember, according to this year’s vote tallies – official or not – the majority of ants voted for the current grasshoppers instead of ‘new’ ones. It’s going to be darn near impossible to vote out Santa Grasshopper…
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Brother Winston Smith
Posted on December 27, 2012 at 12:51pmJacquesChirac, lest we get lost in symbolism, the leftist republican party and leftist democrat party are the grasshoppers. Red grasshoppers WILL TRICK US into thinking that they will “fight” the blue grasshoppers, for the ants. But, this NEVER, EVER, EVER, EVER, EVER happens. Because… red grasshoppers… ARE GRASSHOPPERS!!!!!!!!!
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katzkiner
Posted on December 27, 2012 at 4:13pmThey are not grasshoppers, they are locusts. Call Orkin..
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JacquesChirac
Posted on December 26, 2012 at 11:08pmWar is peace.
Freedom is slavery.
Ignorance is strength.
YEEESSSSS!!!! Congratulations, fellow US citizens. We are indeed the strongest nation on earth!!!
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taxpro4u03
Posted on December 26, 2012 at 8:01pm@STELEX
Posted on December 26, 2012 at 7:30pm
“So Taxpro, I’ll take you at your word for now……..whats the answer? I see many posts telling us we have no rights but not many answers. I like answers, not pouting. I know we are in a bad situation so as a Taxpro I ask you…….whats the answer.” The ANSWER is APPLYING knowledge with honor, as the INDIVIDUAL situation requires — 1st – Due diligence is an INDIVIDUAL responsibility, meaning you CANNOT ‘delegate’ it — doing so WAIVES RIGHTS. Knowing who you ‘are,’ is a great starting point. Learn the LAW from its SOURCE. This requires reverse engineering using information you already HAVE. Therein lies the ‘answer.’ NO (wo)MAN can tell another FREE (wo)MAN what to do or ‘how’ to do it. — WATCH them, see what WORKS – and employ where necessary. The best I can offer is my ‘ball/wall’ analogy in that if one tosses a ball against the wall at a certain angle with a certain force, it will bounce back in a PREDICTABLE way each and every time for EVERYONE. It is a NATURAL LAW, and MUST work for everyone, every time. The only parameters that one can control are angle and force. You MUST understand your RIGHTS come from Divine Providence and in the court’s own words, “…are antecedent to the CREATION of the State…” You have no rights, until you exercise them .. under THIS jurisdiction, you must have ‘permission’ (license) to do that which you are already FREE to do anyway… THINK about that, and act like a Man
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taxpro4u03
Posted on December 26, 2012 at 8:10pm….a Man determined to be free … should have been the trail of that post — I mean to offend no one, tho it is not a ‘right’ NOT to be offended… (the agent provocateurs know who they are…)
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Stelex
Posted on December 26, 2012 at 8:21pmWell thats all well and good when your opponent is playing fair. Get over it……laws are only in place for us, not them. Lets see what happens to Gregory…….Laws are nothing more than words, chosen to be observed. Our government no longer observes our laws, the banks no longer observe our laws, the only time laws count are against the average citizen. So I suggest you grow a set yourself, and act like a man. A real man, not your I work withing words man. Good luck with that. Thanks for getting me back on track.
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taxpro4u03
Posted on December 26, 2012 at 8:53pm@STELEX
Posted on December 26, 2012 at 8:21pm
start HERE — > http://www.teamlaw.org/ Follow the data to its source for verification and perhaps enlightenment. I’d also suggest getting your hands on a copy of Black’s Law Dictionary 6th ed. Very helpful to understand psycholinguistic ‘symbolism.’ Perhaps you’ll find additional information of use here: –> http://www.barefootsworld.net/index.html It’s very uncomfortable for many to come out of their comfort zones to fully understand that which they ‘believe’ to be true. In the absence of substantive authority superior, ‘truth’ IS what CAN be reasonably ‘proven.’ We can all agree to disagree without being disagreeable. Happy studying! (btw — give yourself a tax-free raise simply by USING the 1954 tax code as amended — it’s there for a REASON,and “…No one owes no more than the ‘law’ demands.” IF your ‘fair share’ is $0 – as Judge Learned Hand opined ‘ (btw — you will discover the 1954 Code is ROOTED in the Uniform COMMERCIAL Code) -
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NOBALONEY
Posted on December 26, 2012 at 7:57pmSeptember 2012 Congress passed a 1.4 trillion dollar stop gap measure to run the federal government through March 2013. November 16, 2012 Treasury Secretary Geithner states that with some “accounting tricks” we have enough to get us to mid February, early March 2013. December 26, 2012 Geithner states we’ll hit the debt ceiling by December 31, 2012. The “Fiscal Cliff” drama was exactly what the August 2011 “Budget Control Act” a distration from the real problem, our national debt. Speaker Boehner has conceded already with the raising of the debt limit for another year, and Senator Reid had said he would raise it by 2.4 trillion dollars. Secretary Geithner wants no limit at all. So the path over the cliff is greeced, and the dollar takes another dive. Cliff Lord Obama’s GOP RIP his plan be.
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G-WHIZ
Posted on December 27, 2012 at 12:15pmDonna worry—[D]POS-BOHNER will necessarilly WIMP-OUT again and again and again an…….. !
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breakobamanow
Posted on December 26, 2012 at 7:49pmJeremiah 13:25
This is thy lot, the portion of thy measures from me, saith the LORD; because thou hast forgotten me, and trusted in falsehood.
Psalm 118:8
It is better to trust in the LORD than to put confidence in man.
Proverbs 3:5
Trust in the LORD with all thine heart; and lean not unto thine own understanding.
Proverbs 28:25
He that is of a proud heart stirreth up strife: but he that putteth his trust in the LORD shall be made fat.
Proverbs 29:25
The fear of man bringeth a snare: but whoso putteth his trust in the LORD shall be safe.
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SaturdaysWarrior76
Posted on December 26, 2012 at 7:31pm@STREGA: I completely get where you are at my friend. After the election sham…it really took the wind out of our sails. It’s easy to feel defeated and hopeless when every day we see our country becoming something we no longer recognize. I feel the same sense of frustration and worry that you feel. I think everyone here at the BLAZE feels it too. Listen to Glenn Beck’s speech from Restoring Love:
http://www.video.theblaze.com/media/video.jsp?content_id=23433373&topic_id=&tcid=vpp_copy_23433373&v=3
If the link doesnt work go to GlennBeck.com and search: Restoring Love Keynote speech!
It will Lift you up and put the fight back in you! :) FIGHT ON MY FRIEND NEVER GIVE UP!
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AmericanStrega
Posted on December 26, 2012 at 7:37pmI’ve watched this before. Thanks Saturday for reminding me. I’ll try to Keep The Faith.
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mikefromaltoona
Posted on December 26, 2012 at 7:25pmI sometimes wonder how much the federal government is worth. From aircraft carriers to every bullet. From buildings of every kind to paper clips. Gold, silver and land, land, land. Vehicles of every type. The most advanced satelittes, the lanch vehicles to send them into orbit and the facilities to launch them from. Laboratories to investigate the living and the inanimate, from the smallest to the lagest, from the edge of the universe to the center of an electron. Embasies, consuls, missions, cultural centers and military bases in cities across the globe.
That’s got to be worth something right? So lets have an auction.
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Daddy Hawg
Posted on December 26, 2012 at 7:21pmWhy now can geitner use accounting measures now to save $200 billion?! Is geitner cooking the books depending on the situation? Sure as h377 seems something shady is going on!
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turkey13
Posted on December 26, 2012 at 7:35pmThe president should have another record in the Guiness Book of Records along with his playing more golf games than any previous presiden in 4 years. In 4 years he added 5 trillion bucks and it will probably be 12 Trillion by the time he gets his 3Rd term. That 5 trillion topped G. Bush fir 8 years. I hope he fires up those printing presses 24/7 and throws a National celibration party for the whole country when it tops 20 Trillion. We can afford it if he runs them 24/7 and adds some new printing presses.
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ginjit.dw
Posted on December 26, 2012 at 6:58pmWait the year isn’t over……..Planet obama won’t be satisfied till Zimbabwe passes us in GDP.
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Brother Winston Smith
Posted on December 26, 2012 at 7:09pmActually, that’s Planet Obama/Bush/democrat/republican.
All the same.
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Fubared
Posted on December 26, 2012 at 7:24pmBro smith, you, as an enabler, have little in the way of advice either way. You are a lefty troll, as you did nothing but enable, another lefty troll. Smoke up dude.
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Brother Winston Smith
Posted on December 26, 2012 at 8:33pmTypically, Fubared, the “lefty trolls” can be easily spotted by their baseless Alinskyite name-calling with ABSOLUTELY NOTHING to back up their accusations.
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Unconquerablesoul
Posted on December 26, 2012 at 10:44pmI’m with brother Smith on this. The game is rigged, no matter who’s serving. I would be cautious FUBARED throwing down troll-related commentary when we have real conservatives taking an honest look at what got us into this mess. TARP started with W, and if the financial collapse would have been have lefte to run its course we would have been screwed but wed already be on the way back up by now. He’s right, there’s only two versions of the same party now- unless some real constitutionalists take control of the GOP and right now! Start with ending Boehner’s speakership.
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Stelex
Posted on December 26, 2012 at 6:52pmUntil a large enough chunk of the populace can muster itself to take action, fiscally, nothing will change. As long as the vapid, engorged government keeps getting your tax dollars, nothing will happen.
People need to research tax options and work the system to cut off “The Life Blood Of Gov” money.
Money is the only language politicians speak, lack of money inflicts pain, an abundance of it creates monsters. Money is the answer, if not its revolution. Time to figure it out America. We are under attack.
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mrunner
Posted on December 26, 2012 at 7:05pmUnfortunately- when we cut the flow of cash to these idiots, they just add more debt. Gotta cut up their credit cards! The only way they will learn is if they are not allowed to increase the debt limit.
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taxpro4u03
Posted on December 26, 2012 at 7:05pmSome say SCOTUS Erie RR v Thompkins (1938) was the very catalyst needed to ‘sell’ our great-grandparents the idea that ‘money’ was to be only FRN’s — Kennedy attempted via Executive Order 11110 (I believe I have enough ones in there) to do just that – Then, in ’71 Nixon went ‘totally’ off the gold standard – Corporations can do what they want – It’s THEIR ‘charter.’ — Chief Justice Roberts just made that abundantly CLEAR whereby ‘penalty’ means ‘tax’ to ‘fit’ the corporate Commerce Clause — self-evident… :-)
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Stelex
Posted on December 26, 2012 at 7:30pmSo Taxpro, I’ll take you at your word for now……..whats the answer? I see many posts telling us we have no rights but not many answers. I like answers, not pouting. I know we are in a bad situation so as a Taxpro I ask you…….whats the answer.
Anthem of the Heart, Anthem of the mind. People are sovereign. I don’t care what laws say.
http://www.youtube.com/watch?v=LF7U8F2aars
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drs1969
Posted on December 26, 2012 at 11:47pmMuch of the pop/ has been anestitized w/ handouts. The key to shutting this beast down is the bond market. Bernanke has managed to rig it for nearly 4 years now, but after his last QE announcement, interest rates actually turned up. The market had already priced it in. At some point, Bernanke is going to lose control of it. Then the gov. won’t be able to pay interest on it’s debt and make all the hand outs. Don’t be holding bonds when that happens.
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mrunner
Posted on December 26, 2012 at 6:50pmOver the cliff we go. Don’t agree to raise the debt ceiling and shut all non-essential government functions down for about 6 months. Maybe the welfare class suckling on the government teet will actually learn the self respect of providing for themselves, maybe we will reach out and help those who truly need it. Maybe we will figure out what we as a people can live without. And maybe, just maybe we will figure out that starving the government is a good thing and we don’t need them nearly as much as our politicians want us to believe we do….Bring on the ObamaZombie Apocalypse.
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taxpro4u03
Posted on December 26, 2012 at 6:47pmWait. What? 14th Amendment Citizens CANNOT question the corporate ‘debt.’ — I’m SURE I read that somewhere — Then there’s 15 united States Statute at Large 249 (1) pps 223—224 – rumor has it it was an ‘Act of Congress’ ONE DAY prior to the enactment of sed 14th Amendment. Not quite sure what THAT’S all about…Shhhh! Don’t tell nobody – especially 47%-ers that harbor disdain for the very freedom they enjoy. {Nyuck-nyuck}
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AmericanStrega
Posted on December 26, 2012 at 6:44pmThis b.s. is never going to stop. We The People cannot do a dang thing. It’s 50 years too late to try and vote these (dems and reps) out of office. They’ve enacted laws that protect themselves against We The People so there is no way to stop them. I guess we could all join together and march to the capital and/or white house and demand they stop destroying America. But what will that march really do? NOTHING! They don’t give a crap about We The People. All they want from us is to keep paying more taxes, sit down and STHU. How do we change this We The People? Where is our George Washington? We don’t have one and so we’ll just become what they want us to become, serfs who work for them. It stinks, but what the heck are We The People going to do? Anyone, anyone…?
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SaturdaysWarrior76
Posted on December 26, 2012 at 6:55pmWe Will not comply! Say it loud my friend: WE WILL NOT COMPLY. There are more of us than there are of them, and why do you think they want to take our guns? Because they are AFRAID of us. Don’t take this lying down, get up and shout I WILL NOT COMPLY! If we all join arms and say it, they lose! We are AMERICANS, when have we ever been so willing to simply sit down and be quiet? This country was built on COURAGE! Now let’s go out there and win one for the Gipper!!!
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ginjit.dw
Posted on December 26, 2012 at 6:56pmVery true sadly enough…….
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AmericanStrega
Posted on December 26, 2012 at 7:10pmBut SATURDAY, how would not complying stop this government? Are you old enough to remember Tiananmen (sp) Square? They just brought in the tanks and rolled over those who were opposing what their government was doing. I wouldn’t put it past our government to do the same. I DO NOT WANT TO COMPLY and I WILL NOT LAY DOWN. I will fight from where I stand if say, the government came to take my firearms from me, which is another can of worms that they are opening. But I am really at a loss as to what we can do to stop this runaway train of a government. I respect your comment and hope we can stop them by not complying (in whatever way each person can). But without a “general” to guide us, I don’t think we have a snowballs chance in H*** to ever stop this. Sorry to be such a Buzz-Killington, but I’m truely at a loss as to what to do here.
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taxpro4u03
Posted on December 26, 2012 at 7:24pmI disagree — (some scrubbed) history TELLS us ‘how’ this came to be — reverse engineer it – to DO that one needs a thorough understanding of contracts, trusts, trustee, fiduciary, and beneficiary relationships — from their ORIGINS via implied consent via deceit. IF the WALLS full of statutory lawbooks were all boiled down to gravy by the People themselves, they’d recognize the jurisdiction in which they’re being applied wouldn’t be enough to cover a chicken-fried steak. One key term one BEST understand is ‘trespass.’ Knife cuts both ways. Just have to know which jurisdiction to use IF one believes there is a grievance.
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SouthTexan
Posted on December 27, 2012 at 1:20amThis is the only chance that We the People have of taking back our Country and restoring the Constitution. A dedicated group of patriots have organized to be the enforcement arm of the Tea Party. They are extensively vetting all politicians of both parties.
Anyone found to be committing any crimes will be prosecuted in each representative’s state courts, where they have no immunity. The Indictment Engine will generate criminal and civil complaints and every patriot will receive a prepared lawsuit against their respective member of Congress. Just sign, notarize and send registered mail to your state court house.
Thousands of complaints will be served at once making it impossible to dismiss. A huge rally at the court house as these suits pour in will persuade any reluctant state Judges to do their jobs. We will send anyone found guilty of a felony to state prison. Any Judge who refuses to do We the Peoples work will be dismissed for dereliction of duty. There is a plan that restores our Constitution by imposing term limits, abolishing the federal reserve and many other needed measures.
If the site is down, they are about to launch the prosecution effort, so check back. Pass the word.
http://WWW.JoinAmericaAgain.com
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dublinthewagons
Posted on December 26, 2012 at 6:38pmCut out all the slugs. Stop paying the president, senate and house members and staff. Don’t raise the debt limit period. If you don’t have it don’t spend it. Time for real cuts. Sell air force 1 and the presidents busses and limo’s. Time to stay home and work.
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Stelex
Posted on December 26, 2012 at 6:36pmSimple fix, maybe. If we got 10% or better of the country to pay zero in taxes starting Jan 1st. A strong message would be sent. I’m not saying don’t pay the taxes, just with hold them till the end of the year. For starters. Our money is their life’s blood. OUR MONEY IS THEIR LIFE’S BLOOD. Think about that for a while, let it sink in
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AmericanStrega
Posted on December 26, 2012 at 6:55pmThe problem with your idea is most taxes from us working folk are taken through payroll taxes. The employee cannot stop the employer from taking these taxes from our payroll checks. Reason? The law says the employer has to take payroll taxes. It’s not the employers fault, please don’t get me wrong and think I’m blaming the enployer. Even if the vast majority of Americans don’t file a tax return, it isn’t going to hurt the federal government. This is because they’ve already received taxes from us via payroll tax. I don’t have an answer as to how to stop the federal government from spending us further into He**. Your idea is a good one, but it cannot be done with the laws being the way they are. Maybe if enough people would just go on “strike” and not go to work for a week (who can afford that?) it might make an impact. But then, we couldn’t expect hospital personel, fire fighters, EMS, the police, etc..to not go to work. Like I said, I don’t know the answer, but something has to be done.
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Stelex
Posted on December 26, 2012 at 7:00pmI do it, max out all your exemptions, yes 4.2% payroll I can’t touch yet, but you can with hold state and fed taxes. Look it up. 4.2% is not most of my taxes.
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AmericanStrega
Posted on December 26, 2012 at 7:24pmI see your point in maxing you excemptions (sp), but if you do not pay enough into payroll taxes and in turn do not pay what is “owed” when April 15th comes ’round. Then the feds will just come and take all your stuff and throw you in jail. Now, if a large majority of America did what you suggest, it may make the idiots sit up in their chairs and think. However, I just think the idiots would just send in their goon squads and try (I say “try” because a load of us are armed to the teeth) to take us one by one with their equally, if not better armed, “agents”. Geez, we can post and repost ideas about what to do, but I think we’re effed and we’re not going to be able to change anything. Sorry. As I posted to SATURDAY, I’m being a Buzz-Killington.
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Stelex
Posted on December 26, 2012 at 7:42pmWell, I can’t blame you, its a situation. If I’m still around I’ll bring a carrot to your pen. If not, enjoy serfdom. I won’t.
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AmericanStrega
Posted on December 26, 2012 at 8:01pmNo STELEX, I’m not looking for serfdom or a carrot. I’m on your side here. Please do not chide me. I’m just looking for a real way to stop this crap. If people like you and I start attacking each other then They win. I’m just looking for solutions as you are and playing Devil’s Advocate in hopes to bring that solution we all need. I’m not trying to attack you. Please don’t attack me.
Cheers,
AmericanStrega
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Stelex
Posted on December 26, 2012 at 8:15pmSorry, frustration setting in. Talk isn’t working. Most on here are on the same side, some how we must come to consensus ……action not words is the last and only resort. We are not represented in DC, and I do not believe that we are a minority, as they would lead us to believe. I’m personally tired of being attacked from all sides and I’ve done nothing wrong. We need to take our country back, we have been invaded and now are an occupied country. This is not the America I grew up in and its been a radical change in just the last few years.
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Stelex
Posted on December 26, 2012 at 8:25pmSo lets all keep talking about the problem, that seems to be working so well. I hereby request the US Government, act like men and women and resolve this issue and save the nation. Well now, I’ll sleep much better tonight. Good lord, there are no adults
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Brother Winston Smith
Posted on December 26, 2012 at 6:36pmHad enough?
Really?
The Constitution Party.
The Libertarian Party.
State nullification.
NOW!!!!!!!!
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Fubared
Posted on December 26, 2012 at 7:31pmI prefer the all Capitol letters from previous rants. The over use of exclamation points notwithstanding.
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Brother Winston Smith
Posted on December 26, 2012 at 8:36pmWell, Fubared, as long as the republican/democrat (same thing) party is WHOLLY rejected… grammar and style matters not.
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katzkiner
Posted on December 26, 2012 at 6:31pmI’m. sure Obama is laughing his **** off puffing on a doobie, this is what he wanted his entire life. He is a hero to those who hate America. Mission accomplished.
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AllLost
Posted on December 26, 2012 at 6:31pmHmm….I have 10 dollars in my pocket so I will buy a million dollar home….which led us to a depression.
Government has 10 dollars in their pocket so they spend 1.6 trillion in a year and promise 700 trillion more to people in the future.
Yeah taxing people will fix this situation.
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Tri-ox
Posted on December 26, 2012 at 6:30pmThanks, obama – you stupid POS.
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SaturdaysWarrior76
Posted on December 26, 2012 at 6:29pmJust in time for the New Year… it keeps getting better and better doesn’t it? ugh… :(
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chips1
Posted on December 26, 2012 at 6:28pmBoth parties are guilty of issuing SLUGS. I won’t vote for anyone that isn’t nominated by Americans.
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cykonas
Posted on December 26, 2012 at 6:25pmHow about you dumb arses stop with the games and the hocus pokus? Just stop the over spending you idiots. No more games!
I could not care less about accounting gimmicks, loopholes or any other crap solutions. STOP SPENDING MORE THAN YOU HAVE. It’s really just that simple no matter how the “experts” tell us that it isn’t. Peace.
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Maximus_Delta
Posted on December 26, 2012 at 6:22pmyea! the communist dictator is getting what he wants… To destroy the US economy….
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Brother Winston Smith
Posted on December 26, 2012 at 6:38pmWhich dictator? Obama, Bush, Clinton, Boehner, Spector, McConnell, Wasserman, McCain, West, Rubio, Reid, Bachmann, Pelosi, etc, etc?
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TRILO
Posted on December 26, 2012 at 6:22pmIsn’t that special.
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GuruMeditation
Posted on December 26, 2012 at 6:17pmSomething to be proud of. (sarc)
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