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 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.
Ratings agencies have warned the country to reduce its debt-to-GDP ratio quickly or facing losing its coveted AAA debt rating.
When a country’s debt exceeds its Gross Domestic Product, it becomes insovent and severely economically unstable. Obama’s 2010 budget deficit was 5 times larger than nation’s output, and exceeded the world’s estimated gross domestic product by approximately $14.4 trillion.
The tax/borrow/spend orgy is unsustainable. Our actual unemployment rate stands at 16.2% . That number includes those who simply stopped looking for work. Obama’s socialist tactics horribly backfired. The enormous waste of $814 billion “stimulus” and $787 billion dollars in taxpayer funded bailouts, the government takeover of 2/3rds of the auto industry, insurance corporations, and health care, and the engineered collapse of the housing and banking industry, (TARP) threw America’s economic infrastructure into the toilet.
Our economy has reached a depth to which we can now consider it to be a depression.
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