More on the Fed Statutory Spending Cap Breach

Bennett cartoonI wrote yesterday that the U.S. government passed their $8.18 trillion spending limit on the Treasury’s credit card last week, and it’s starting to catch attention in the blogosphere. The mainstream media is totally asleep at the wheel on this one, which is pretty surprising.

For example, the Washington Post is talking about deficit spending today, but one has to wonder if someone over there forgot to you know… actually check the latest numbers (and they rounded up a tenth of a trillion to $8.2, which only puts them 20 billion dollars off the mark). Still, their article is worthwhile for this quote from Treasury Secretary John Snow:

In the week between Christmas and New Year’s Day, Treasury Secretary John W. Snow notified congressional leaders that the government would reach the statutory debt limit of $8.2 trillion by mid-February, the fourth time in five years the debt limit will have been reached.

“At that time, unless the debt limit is raised or the Treasury Department takes authorized extraordinary actions, we will be unable to continue to finance government operations,” Snow warned.

So does this mean Congress won’t be getting a paycheck on Friday? I doubt it, but that would be so fitting.

9 Comments
  1. I don’t think the press attention is a result of your posting; I think its a result of this press release from the treasury, and this release from the CBO (which is being touted by the Heritage Foundation).

    You’ll notice that the AP article which is circulating is entirely based around the Treasury press release, and that the WaPo article you cite is largely based on a summary of the CBO material.

  2. silence: I wasn’t trying to claim credit for the press coverage, just noting the lack of mention that they hit the statutory spending limit.

    Anyways, I took a look at the press releases you cite and it’s a bunch of financial gobbledygook with no mention of this event, so this just tells me that the press is too lazy to go and dig up facts instead of regurgitating parts of a press release.

  3. Congress raised our debt limit to $8,180,000,000,000. Guess who gets to pay back all of this debt and no its not Hillary and George. I wish everyone reporting on this would show the debt limit fully expanded instead of abbreviated to $8.18 trillion. When shown abbreviated the extent of the problem is not realized by the average person.
    Just remember that you, your children, and your grand-children will be the ones paying back this debt.

  4. Bureau of Public Debt states that the public debt (to the penny) is $8,190,567,748,779.48 (on 01/26/06). That already is a breach. The same bureau states on Jan 30 that they expect the breach in mid-February.. Is it just miscalculation or disinformation? Anyone wants to call them to explain this difference?

  5. What they really need to show is the amount of debt in terms of each person. Everybody can then determine that as this is going up how much they are getting ripped off every year. They can then maybe understand that this debt is actually not much different than a tax.