Barack Obama held a town hall at the offices of Facebook yesterday. Only a small fraction of his many Facebook friends signed on to participate. While Obama spent most of his time trashing the Paul Ryan plan for dealing with the budget deficit, the Daily Treasury Statement indicates that the federal government may max out its line of credit much sooner than expected. Under the bill Obama signed last year on February 12, the nation;s Debt Ceiling is $14.2940 Trillion dollars. As of 4pm EDT Tuesday, the Treasury Department shows the National Debt at $14.268365 Trillion. This leaves only another $25.635 Billion dollars the United States government may legally borrow. The rate of borrowing has jumped from an average of about $4.03 Billion per day to some $9.4 Billion per day since last week Thursday.
Since Anti-President Barack Obama took office in 2009, he has been adding to the National Debt at a rate of about $4.5 Billion dollars per day. This includes a portion of spending which is exempted from counting towards the Debt Ceiling. This compared to the average of $1.45 Billion per day during the 8 years of George W. Bush, considered by most to be excessive as well. In terms of percentage of GDP, the Bush budget deficits peaked in 2004 as the economy began to recover and grow. The Dot-Com bubble burst in 2000 was made worse by the 9/11 attacks. As the Bush cuts in tax rates began spurring positive growth, the budgets deficits, as a percentage of GDP, began to decline in fiscal years 2005 through 2007. But with Democrats winning control of both the House and Senate in November 2006, federal spending began increasing again. Then came the mortgage and financial crash in 2008.
While the last Bush budget for fiscal year 2009 had a deficit of about $482 Billion dollars, the added expanse of the $700 Billion dollar TARP rescue increased the amount significantly. However, while most of the TARP money lent to financial institutions has been paid back, the Obama administration has yet to return that money to the Federal Reserve. In addition, Obama and the Democrats on Capitol Hill launched into a wild spending spree, increasing the size of the federal government by more than 28% in just the first year of his administration. Other monies, such as the bailouts for General Motors in exchange for stock, now appear to be losses to the taxpayers, as GM′s stock continues to decline.
Between Obama’s so-called stimulus program and health care initiative, as well as further bailouts for mortgage giants Freddie Mac and Fannie Mae, Obama is spending money at a rate which is increasing the National Debt three times faster than George W. Bush. Pushing the country to the edge of a new and even greater financial crisis. Obama is reluctant to cut any spending. During several campaign speeches given in the past two weeks, he has gone totally partisan, attacking GOP proposed spending spending cuts and drumming up the old, worn-out class warfare arguments Democrats have been using for decades.
Barack Obama again repeated his vitriol against Republican spending cuts during his Facebook town hall yesterday. He continues to push the Progressive-Democrat agenda of expanding the size and scope of the federal government. Meanwhile, the latest from the Daily Treasury Statement indicates that the United States government will hit the maximum of the Debt Ceiling sometime during the next few days. At which point, the federal government will not be legally permitted to borrow any more money to pay its bills. The National Debt is already more than $14.3 Trillion dollars. Most analysts predict that the government will fudge the books sufficiently to keep the lights on through June. But unless Congress comes to an agreement on raising the Debt Ceiling soon, things could start to get dicey by July.