US Adds 120 Billion In Debt Since Debt Ceiling Hike Friday,310 Billion More On Deck In Next 2 Months

[stockholmer]

http://www.zerohedge.com/news/us-adds-120-billion-debt-debt-ceiling-hike-friday-310-billion-more-deck-next-two-months

Remember when the US hiked its debt ceiling on Friday courtesy of a formulaic 52 affirmative votes in the Senate, http://www.zerohedge.com/news/senate-vote-progress-increase-us-debt-ceiling-12-trillion giving the Treasury $1.2 trillion in dry debt powder to attempt to grow the economy one more time according to the algorithmic fantasies of voodoo priests with pieces of Ivy League parchment on their walls? Well, two days later, the dry powder is less than $1.1 trillion. In other words, in the past two days, total US debt increased by $120 billion, along the lines of our expectations, as the Treasury filled up all the G-fund cash it had pillaged to continue issuing debt throughout the month of January even though it was formally above the debt ceiling. What is more concerning, is that as the chart below shows, the trendline of US debt since the beginning of 2011 is no longer a straight line, but has slowly transformed into a parabola, the very same word used as the root in such other infamous words as, for example, parabolic.

It gets worse: even according to the drastically, and very unrealistically, downward revised borrowing expectations of the Treasury released yesterday, http://www.treasury.gov/press-center/press-releases/Pages/tg1401.aspx the US will issue $444 billion in debt in this quarter. Today's number means that in February and March alone Tim Geithner will raise another $310 billion, which will send total debt to $15.7 trillion as of March 31. What is the final debt ceiling? Just under $16.4 trillion. So the US will have $700 billion in debt issuance capacity for the 7 months leading into the presidential election (and the 9 months until the end of the year).

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And, we almost forgot to add, as of today, total debt to GDP is once again well over 100% even with the latest Q4 GDP data, at 100.4% and rising every day.



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[kentuck]

1. Well...

We wouldn't want to raise taxes on the wealthy or repeal the Bush taxcuts or cut the bloated defense budget. And we won't ask anyone under $250K per year to pay anymore in taxes...What other options do we have?