U.S. Government has Exceeded its Debt Ceiling--Is it a Default?
If you look at my running debt-clock (right side of blog, beneath my profile) and then look the notes beneath it, you will quickly come to the realization that something is wrong... The United States has exceeded its maximum authorized debt limit--and the rift between the ceiling and actual expenditures is growing larger by the second.
How can our government leaders exceed the National debt ceiling without some kind of explanation? Why are there no national press reports? Where is CNN? What are the implications? When will the Debt Ceiling Be Increased?--(Certainly, we won't wait till March)
I just sit here baffled and dumbfounded... In an effort to find answers to these questions, I decided to go searching through the web for answers. What did I find?--a mere 2 links:
Financial Sense University has this link: U.S. IN TECHNICAL DEFAULT. Snippets below:
In a shocking development, the Treasury Department website is openly stating that as of January 24, 2006 our national debt stood at $8,185.3 billion and on January 26th at $8,190.5 billion. Yet the US national debt ‘ceiling’, the maximum amount of debt the US government may hold at any one time, stands at $8,184 billion – a full $5.5 billion less. Although called upon by John Snow, Congress has not yet passed an expansion of the debt ceiling and so the US government is now operating in technical default.
Hammer of Truth has anther link: Fed Debt Limit Breach: U.S. in Technical Default. Snippets:
On January 24th, the U.S. government went into technical default according to the government’s own debt watch website. Economist Dr. Chris Martenson is sounding the klaxons and wondering why it hasn’t hit the financial press yet, saying “But the silence is all the more troubling because there is an unprecedented level of government borrowing on the books for 1Q06 with next 2 weeks (Feb 1st to Feb 9th) an especially busy period of time. An ambitious ~$70-$80b in Treasury paper will hit the market.” He suggests emergency congressional action may be needed to avoid a full-fledged default.
Hopefully, our elected leaders will let us know their plan VERY SOON.