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Understanding the U.S. Debt Ceiling.


As of Monday, the U.S. had $14.14 trillion in debt subject to the $14.294 trillion debt ceiling, according to the government’s Bureau of Public Debt. This is up from $14.0 trillion Jan. 28.

As of 04/07/2011


Debt Held by the Public ——————-9,652,195,544,012.12
Intragovernmental Holdings ————4,612,049,982,299.46
Total Public Debt Outstanding ——14,264,245,526,311.58
——————————————————————–
——————————————————————–

Sept, 30, 2010——————– 13,561,623,030,891.79
Sept. 30, 2009——————– 11,909,829,003,511.75
Sept. 30, 2008——————– 10,024,724,896,912.49
Sept. 30, 2007———————- 9,007,653,372,262.48
Sept. 30, 2006———————- 8,506,973,899,215.23
Sept. 30, 2005———————- 7,932,709,661,723.50
Sept. 30, 2004———————- 7,379,052,696,330.32
Sept. 30, 2003———————- 6,783,231,062,743.62
Sept. 30, 2002———————- 6,228,235,965,597.16
Sept. 30, 2001———————- 5,807,463,412,200.06
Sept. 30, 2000———————- 5,674,178,209,886.86

SOURCE: U.S. Department of the Treasury, Bureau of the Public Debt

George Walker Bush

With the country in a state of general prosperity, the 2000 election between George W. Bush and Vice President Al Gore was perceived to be one of the least dynamic on issues. As it turned out, the race was one of the closest in the country’s history. By early evening on election night, it was apparent that whoever won Florida would win the election.

Bush’s razor-thin margin of about 1,200 votes prompted an automatic recount. The case ultimately ended up in the U.S. Supreme Court. Bush officially became the president-elect on Dec. 13, after the Supreme Court reversed a decision by the Florida Supreme Court to allow manual recounts of ballots in some Florida counties, contending that such a partial recount violated the Constitution’s equal protection and due process guarantees.

With Florida in his column, Bush won the presidency with 271 electoral votes, just one more than he needed, although he lost the popular vote by half a million. The divided 5–4 Supreme Court decision generated enormous controversy, with critics asserting that the Supreme Court, and not the electorate, had effectively determined the outcome of the presidential election.

In early 2003, President Bush unveiled a sweeping economic stimulus plan that characteristically centered on tax cuts. The plan, in its original form, would have cut taxes by $670 billion over ten years; Congress approved a $350 billion version. Although all workers were to benefit from the tax plan, it strongly favored two groups: two-parent households with several children and the wealthy—nearly half the proposed tax benefits were reserved for the richest 10% of American taxpayers. Critics of the plan, including fiscally conservative Republicans, argued that it was unsound to offer tax cuts while the country was involved in an expensive war and in the midst of a jobless recovery. The federal budget deficit, according to the nonpartisan Congressional Budget Office, reached a record $412 billion in 2004. The White House countered that the Bush tax cuts had in fact kept the recession remarkably shallow and brief.

Barack Hussein Obama, Jr.

After a historic and bruising 22-monthlong campaign, Sen. Barack Obama was elected the 44th president of the United States on Nov. 4, 2008. He prevailed over Sen. John McCain in what was probably the most pivotal U.S. election since World War II. He took the oath of office on Jan. 20, 2009, and became the first black U.S. president.

Looking Ahead to the Debt Ceiling Plus (+) or Minus (-), and into 2012.

While barely avoiding a Federal Shutdown, the country is still on a slippery slop, with only enough time to take a collective deep breath before plunging into the deep waters of the budget.

The Federal Government will hit its limit on borrowing by May 16, slightly over a month from now. At that time, there will be no more time for indecision. The House and Senate will have to vote definitively, to either raise the debt ceiling or cut the budget, in ways that this country have never seen, with the general public (Republicans, Democrats, Tea Party, Independents, Others) serving as collateral damage.

If the budget is cut or reduced with the cake knife that the Republicans and Tea Party members are calling for, only the wealthy will be spared and their castle will feel a slight shift as they find the services they have grown so accustomed to having, no longer exist.

It’s amazing to see so many shouting ‘Shut the Government Down!” while at the same time, either knowingly or unknowingly still depending on that very same government for their livelihood. It’s an oxymoron of major proportion.

In this instance, having Monday morning regrets, will have devastating consequences of which the human mind will not be able to comprehend but will have immediate impact on this once great nation.

Please keep in mind that if Congress “Shut the Government Down,” the U.S. will immediately lose its status to lead over countries. As it is, the U.S. dollar is already taking a beating outside of the states

The IMF

The IMF is trying to move the world away from the U.S. dollar and towards a global currency once again. In a new report entitled “Enhancing International Monetary Stability—A Role for the SDR”, the IMF details the “problems” with having the U.S. dollar as the reserve currency of the globe and the IMF discusses the potential for a larger role for SDRs (Special Drawing Rights).

But the IMF certainly does not view SDRs as the “final solution” to global currency problems. Rather, the IMF considers SDRs to be a transitional phase between what we have now and a new world currency. In this newly published report, the IMF makes this point very clearly: “In the even longer run, if there were political willingness to do so, these securities could constitute an embryo of global currency.” Yes, you read that correctly.

The SDR is supposed to be “an embryo” from which a global currency will one day develop. So what about the U.S. dollar and other national currencies? Well, they would just end up fading away.

Moving Forward…

To all those that are not aware of the debt ceiling and how it would ultimately affect you personally, I suggest that you make looking up this subject, your number one priority. I have provided you with enough information to get started.

It is your responsibility to protect your family and your country. There will be no opportunity to plead ignorance in the foreseeable future. The debt ceiling is being discussed on every media level; the newspaper, the radio, the TV and the internet.

The time is now for you to take charge of your own financial future and not leave it in the hands of others.

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April 10, 2011 - Posted by | Business News | , , , ,

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