U.S. to Hit Debt Ceiling in Early January

Here we go again.   Barely through the tax holiday extension, which was only extended

for two months and requires Congress to reach a deal when legislators return after the Christmas break,  they will also have to revisit raising the debt ceiling.  The Treasury Department has given

notice that the debt limit will be reached in early January and a request for an additional $1.2 Trillion is imminent in early January.

WASHINGTON (AFP)

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.

About the Author

Karl Gotthardt - Politisite Managing Editor Maj. Gotthardt is a Retired Military Officer with 35 years service in the Canadian Armed Forces. He spent most of his time in the Military in Infantry Battalions. Karl took part in training for Afghanistan as an Operator Analyst with the Canadian Maneouvre Training Centre. Karl is a qualified military parachutist and military free fall parachutist. He earned his U.S. Master Jump Wings in Fort Benning, Georgia. Karl enjoys working with horses for the last 24 year. He owns six. He has experience in breeding, training and of course riding.Karl was born in Germany and is fluent in both English and German and he speaks enough French to "get in trouble". Karl has written or writes at NowPublic, All Voices, Tek Journalism and many others.

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