Bush Trying To Boost Borrowing Limits For 3rd Time (After Elections)

[DrFunkenstein]

Treasury Department officials have told congressional staff in recent weeks that by shifting federal funds among different accounts, they may find enough cash to avoid the need for new borrowing authority until mid-November, said the aides, who spoke on condition of anonymity.

With a spate of huge federal deficits over the past three years, Congress has already boosted the borrowing limit twice since President Bush took office. Congress approved a record $984 billion debt ceiling boost in May 2003, and a $450 billion increase in June 2002. The need to raise the current $7.4 trillion ceiling is certain, with the only question being one of timing.

By delaying a vote until after the elections, Republicans could prevent Democrats from using the debate to train a campaign-season spotlight on the massive deficits of Bush's term, his tax cuts and what they say has been his mishandling of the economy. This year's shortfall is expected to be roughly around $450 billion, breaking last year's record of $374 billion.

Treasury spokesman Rob Nichols said the department believes the government will hit its current $7.4 trillion borrowing limit in late summer. But Treasury officials have told lawmakers they may be able to find enough cash to pay federal bills into November by shifting money among various accounts, the congressional aides said.

Congress' budget, which has stalled because of a fight over tax cuts, lays the groundwork for a $690 billion increase in the current limit to $8.1 trillion. Raising the borrowing ceiling is a difficult vote for many lawmakers, because election challengers often use it to accuse incumbents of being fiscally reckless. Failing to raise the limit when needed is widely viewed as unthinkable, because it could force an unprecedented default that would hurt the government's credit rating and rattle the economy.

http://story.news.yahoo.com/news?tmpl=story&cid=512&e=2&u=/ap/debt_limit

[madrchsod]

1. several months ago there was a government report issued

saying that the real amount of debt was around 650 billion dollars,not the 450 billion debt. no one but a few realized the signifigence of the difference in amounts. the whitehouse knew the amount was 650+ but never allowed that figure to go public..that is just this year-without the iraq war debt which is not accounted in this figure...
also if you want to get creative throw in the surplus clinton had to that number and it becomes staggering...

[Gloria]

2. Whether the ceiling is raised or not, this shouild STILL be an issue!!!

But it has to be wrapped into a cohesive message about the implications for the future.