The lies about the debt ceiling increase start to fall apart …
How do you tell when a politician is lying?
When their lips are moving. A lot of politician lips have been flapping during the recent debt ceiling debate — resulting in a lot of lies being broadcast as gospel. The politicians said we needed to raise the debt ceiling in order to get the country’s financial house in order. Now that the debt ceiling deal is signed into law, the painful truth is leaking out:
US debt shot up $238 billion to reach 100 percent of gross domestic project after the government’s debt ceiling was lifted, Treasury figures showed Wednesday.
Treasury borrowing jumped Tuesday, the data showed, immediately after President Barack Obama signed into law an increase in the debt ceiling as the country’s spending commitments reached a breaking point and it threatened to default on its debt.
The new borrowing took total public debt to $14.58 trillion, over end-2010 GDP of $14.53 trillion, and putting it in a league with highly indebted countries like Italy and Belgium.
Public debt subject to the official debt limit — a slightly tighter definition — was $14.53 trillion as of the end of Tuesday, rising from the previous official cap of $14.29 trillion a day earlier.
Treasury had used extraordinary measures to hold under the $14.29 trillion cap since reaching it on May 16, while politicians battled over it and over addressing the country’s bloating deficit.
The official limit was hiked $400 billion on Tuesday and will be increased in stages over the next 18 months.
The last time US debt topped the size of its annual economy was in 1947 just after World War II. By 1981 it had fallen to 32.5 percent.
So, we’ve gone from the world’s foremost economic power to joining the deadbeat caucus with heavyweight nations Italy and Belgium. What this news tells us is WE GOT SCAMMED BY DC AGAIN. The Obama Administration fudged the actual economic numbers to make things look a little better than they were.
As of today, our national debt has surpassed the nation’s total gross domestic product. What is GDP? It is the total market value of all final goods and services produced in a country in a given year, equal to total consumer, investment, and government spending, plus the value of exports, minus the value of imports.
So, the total amount our country OWES is more than what we produce every year. Beautiful. Great job, Congress. The story gets even “better”:
Ratings agencies have warned the country to reduce its debt-to-GDP ratio quickly or facing losing its coveted AAA debt rating.
Moody’s said Tuesday that the government needed to stabilize the ratio at 73 percent by 2015 “to ensure that the long-run fiscal trajectory remains compatible with a AAA rating.”
We got told that the debt ceiling had to be raised in order to protect the nation’s credit rating. Actually, the credit rating agencies wanted us to CUT our amount of debt in order to preserve our credit rating. So, what did our “leaders” do? They saddled us with even more debt!
In the private sector, incompetence like this would get the perpetrators fired and drop-kicked out the front door. But we keep giving these liars and crooks money and a new contract every two to six years.
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