Told you so many times over the last few months that the debt would jump big time right after the debt ceiling increase. The nation’s debt has amazingly stayed unchanged at $25 million below the ceiling since May. The government borrowed from federal pensions and now must pay that back. Again we were lied to by our government. Our debt was going up regardless of the debt ceiling not being breached, it’s all a game. Interestingly, the debt ceiling was raised until February 7th but there is no limit to the Treasury’s borrowing between now and then. So until February 7th there is no debt ceiling in America.-Lou
U.S. debt jumps $328 billion — tops $17 trillion for first time
U.S. debt jumped a record $328 billion on Thursday, the first day the federal government was able to borrow money under the deal President Obama and Congress sealed this week.
The debt now equals $17.075 trillion, according to figures the Treasury Department posted online on Friday.
The $328 billion increase shattered the previous high of $238 billion set two years ago.
The giant jump comes because the government was replenishing its stock of “extraordinary measures” — the federal funds it borrowed from over the last five months as it tried to avoid bumping into the debt ceiling.
Under the law, that replenishing happens as soon as there is new debt space.
In this case, the Treasury Department borrowed $400 billion from other funds beginning in May, awaiting a final deal from Congress and Mr. Obama.
Usually Congress sets a borrowing limit, or debt ceiling, that caps the total amount the government can be in the red.
But under the terms of this week’s deal, Congress set a deadline instead of a dollar cap. That means debt can rise as much as Mr. Obama and Congress want it to, until the Feb. 7 deadline.