Here we go again. Barely through the tax holiday extension, which was only extended
The US government will hitits debt limit in the first week of January, the Treasury Department said on Tuesday, as it pointed to an imminent request for $1.2 trillion increase.
The government is expected to come within $100 billion of the current $15.2 trillion ceiling by the end of the year, Treasury Department officials said.
That effectively puts lawmakers on notice that they will have until mid-January to oppose a fresh increase.
But a reprise of the vicious political debates over the debt ceiling that brought the US to the brink of default over the summer is unlikely. AFP
While the debt has grown well beyond the $15 Trillion mark, an additional increase of $1.2 Trillion will push it well above $16 Trillion. The irony of this debt is that the Obama Administration and the Treasury Department have asked Europeans to get their problem under control, while nothing is being done regarding entitlement reform in the U.S. This is not likely to happen during an election year.
As Congress takes up the issue of the payroll tax cut extension and the raising of the credit ceiling you can rest assured that the blame game will continue.