WASHINGTON (AP) -- The government will borrow $72 billion in debt auctions next week now that Congress has raised the nation's borrowing limit.
The Treasury Department says it will sell 3-year notes, 10-year notes and 30-year bonds to raise the money. About one-third will go to repay debts that are due on Aug. 15.
President Barack Obama cleared the way for the auction on Tuesday when he signed into a law a bill that raises the debt ceiling and promises more than $2 trillion in cuts to government spending over the next decade.
The U.S. government currently borrows 40 cents of every dollar that it spends.
An initial debt ceiling increase of $400 billion took effect immediately on Tuesday. That will allow the nation to borrow what it needs through September, the Treasury Department estimates.
The next $500 billion boost will occur after lawmakers vote on resolutions stating they approve of the increase. The votes are mainly ceremonial, because the president can veto the resolutions.
The final $1.5 trillion increase will occur after a bipartisan committee of lawmakers from both chambers identifies how the government can cut $1.5 trillion from the federal deficit over the next ten years. If the committee's fails to agree on the cuts, the borrowing limit will rise by between $1.2 trillion and $1.5 trillion.
The Treasury Department says it will sell 3-year notes, 10-year notes and 30-year bonds to raise the money. About one-third will go to repay debts that are due on Aug. 15.
President Barack Obama cleared the way for the auction on Tuesday when he signed into a law a bill that raises the debt ceiling and promises more than $2 trillion in cuts to government spending over the next decade.
The U.S. government currently borrows 40 cents of every dollar that it spends.
An initial debt ceiling increase of $400 billion took effect immediately on Tuesday. That will allow the nation to borrow what it needs through September, the Treasury Department estimates.
The next $500 billion boost will occur after lawmakers vote on resolutions stating they approve of the increase. The votes are mainly ceremonial, because the president can veto the resolutions.
The final $1.5 trillion increase will occur after a bipartisan committee of lawmakers from both chambers identifies how the government can cut $1.5 trillion from the federal deficit over the next ten years. If the committee's fails to agree on the cuts, the borrowing limit will rise by between $1.2 trillion and $1.5 trillion.
Treasury's advisory group of private bond sellers agreed that credit rating agencies are unlikely to downgrade the nation's sterling credit rating soon. However, they said that Treasury should continue to focus on selling longer-term bonds to minimize the threat of a downgrade based on high future deficits.
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1 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentdanrighty Report AbuseWhat happened to all the tarp money that was paid back? Should that not have been used to pay some of the 14.5 million dollar debt. I hear nobody even mentioning that fact. I'm just guessing that is a dimocrat slush fund. I thought that was the American peoples monies.
Reply- 2 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentRick Report Abuse
Did anyone expect anything less? The debt limit should not have been raised and now we are over two trillion more in debt! Why did the republicans give this Marxist more money to spend?
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In 2012, every RINO up for election needs to go! Almost all the Tea Party people held the line and the Marxist obamas feet to the fire, RINOs are more dangerous than the libs, they ALL have to go before we can make progress! - 7 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentchaz54 Report Abuse
And all of you obama supporters, here is another gem that just proves what a bunch of morons they are. Remember the cash for clunkers program...well, here is the math and you tell me at the end how smart they are in handling OUR DANG MONEY!!
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A clunker that travels 12,000 miles a year at 15 mpg uses 800 gallons of gas a year.
A vehicle that travels 12,000 miles a year at 25 mpg uses 480 gallons of gas a year.
So, the average Cash for Clunkers transaction will reduce gasoline consumption by 320 gallons per year.
The government claims 700,000 clunkers have been replaced so that's 224 million gallons saved per year.
That equates to a bit over 5 million barrels of oil.
5 million barrels is about 9 hours worth of US consumption for ONE FULL DAY.
More importantly, 5 million barrels of oil at $100 per barrel costs about $500 million dollars.
So, the government paid $3 billion of our tax dollars to save $500 million.
We spent $8.57 for every $1.00 we saved.
I'm pretty sure they will do a better job with our health care, though. - 4 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentchaz54 Report Abuse
DISGUSTED...I think now you are getting the picture. Our analysts say 2011 final GDP will be posted in end 1Q 2012 at 1.3%. Their best guess at current is for 1Q and 2Q 2012 GDP (only numbers posted prior to Nov Election) will be a repeat of 2011 with an outside chance to hit 1.7%.
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I can not wait for the next lecetion
If you voted for obama in '08 to prove that you were not a racist you must surely vote against him in '12 to prove that yo are not stupid! - 10 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentNotMyProblem Report Abuse
I called Citibank. Told them I couldn't pay my Visa bill and asked them to raise my credit limit. They said no for some reason...
Reply - 8 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this commentchaz54 Report Abuse
OK all of you BUSH Bashers... so you dont want to accept blame for electing this empty suit as POTUS and you want to keep saying he was handed a pile by Pres Bush....well, lets chew on this for a bit:
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B-b-b-But It's HIS Fault
Budgets do not come from the White House. They come from Congress and the party that controlled Congress since January 2007 is the Democratic Party.
Furthermore, the Democrats controlled the budget process for FY 2008 & FY 2009 as well as FY 2010 & FY 2011. (FY = fiscal year)
In that first year, they had to contend with George Bush, which caused them to compromise on spending, when Bush somewhat belatedly got tough on spending increases.
For FY 2009 though, Nancy Pelosi & Harry Reid bypassed George Bush entirely, passing continuing resolutions to keep government running until Barack Obama could take office. At that time, they passed a massive omnibus spending bill to complete the FY 2009 budgets.
And where was Barack Obama during this time? He was a member of that very Congress that passed all of these massive spending bills, and he signed the omnibus bill as President to complete FY 2009. Let's remember what the deficits looked like during that period:
2008 ($450B)
2009 ($1.75T)
2010 (1.4T)
2011 who flippin knows?????
If the Democrats inherited any deficit, it was the FY 2007 deficit, the last of the Republican budgets. That deficit was the lowest in five years and the fourth straight decline in deficit spending. After that, Democrats in Congress took control of spending, including Barack Obama, who voted for the budgets.
If Obama inherited anything, he inherited it from himself.
In a nutshell, what Obama is saying is I inherited a deficit that I voted for and then I voted to expand that deficit four-fold since January 20th. - 4 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 3 users disliked this commenthillcoguy Report Abuse
The repubs extending the debt limit was giving that alcoholic just one more drink.....and the beat goes on.
Reply - 9 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 1 users disliked this commentDon Report Abuse
Obama OWN'S this.
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Next time you vote, be careful what you ask for ( "NO" Hope and Change "For the Worse") you just might get it! - 1 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 11 users disliked this commentjammer Report Abuse
What Bush DIDN'T have to do was start his,'war of revenge' against Saddam, which supposedly tried to kill Bush's dad. Iraq had nothing to do w/ 911 and the war was based on false data.
Replies (2) - 10 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 1 users disliked this commentA Yahoo! User Report Abuse
For those who continue to blame Bush for everything remember that he had to deal with the 911 attacks and war on terror. Even with all that and Bush's lack of focus on spending reductions he spent no more than 500 billion in deficit spending at his worst and it was getting better before the Democrat caused Fannie and Freddie disaster. Obama has spent consistently 3 times as much in deficits each year as George Bush's WORST years. Obama, Queen Pelose, and Reid own these deficits.
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