Use access key #2 to skip to page content.

starbucks4ever (85.09)

Something is happening to that 12.1 trillion debt cap, and it is very non-obvious



September 28, 2009 – Comments (4)

Up till now, the general consensus was that we'd hit the 12.1 trillion limit in mid-October. That was the common view in July and the media kept repeating it as early as this September: Indeed, the debt has been rising steadily for the most part of this year. However, about 1.5 months ago something started to change. It's been a month now that this debt clock is showing virtually unchanged levels of debts, standing at about 11.8 trillion. About once a week the clock shows a small increase, then the numbers begin to get smaller, and before the week is over, the debt returns to its original level. Moreover, for the past couple of weeks, I believe the clock showed an overall DECLINE. Anyway, with only 3 weeks to go before the mid-October deadline, it is highly unlikely that we can go from 11.8 trillion to 12.1 trillion at that rate. So some 300 billion dollars of projected debt got lost somewhere, and I can't see how this little miracle could happen. Banks returning TARP money would be one obvious candidate, but there is no way they could return 300 billion. No budget cuts have been announced, and I don't see the tax revenue beating projections by this amount. Even if they monetized this debt, it would be a radical revision of the approved budget parameters (even if a pleasant kind of change as far as Geitner is concerned), so there is no way it could go unreported. Something strange is going on... Some stealthy monetization program bypassing the common accounting procedures?  

4 Comments – Post Your Own

#1) On September 28, 2009 at 12:34 AM, KamranatUCLA (29.38) wrote:

i agree. i was surprised to see that too, but i thought it was me who mixed up the numbers.

i hate this government keeping everything secret until they mess it up, started with bush and it's still going on.

bring some damn transparency to this damn market and maybe things get better.

stupid idiots are running this country like monkies (Bush being the monkey, i expect more from Obama)

Report this comment
#2) On September 28, 2009 at 7:10 AM, kaskoosek (30.11) wrote:

Maybe lower interest on the debt.

Report this comment
#3) On September 29, 2009 at 5:06 PM, Alex1963 (27.59) wrote:

It's daylight saving debt . Setting the clock back one hour = 500 billion. Don't forget to change the batteries in your deficit detectors :)

Report this comment
#4) On September 29, 2009 at 5:19 PM, bigcat1969 (81.49) wrote:

Certain programs have been cutback or at least spread across a longer period of time.  Could this be a reason that the debt hasn't increased as much as expected?

Report this comment

Featured Broker Partners