The great Debt Ceiling debate of 2011 appears to have accomplished little but to maintain the status quo for big spenders in both the Republican and Democratic parties. In fact, after the political rhetoric of the Super Congress, and cut spending took place over a month last summer, the end result has been an INCREASE in spending, so much so that the government is now expected to run out of money a full month before the Presidential elections.
This after Congress promised the American people that their raising the debt ceiling in 2011 would last until the end of 2012.
Earlier today, the Treasury forecast that in the third and fourth fiscal quarter of 2012 (April-September), the US would need a total of $447 billion in new debt (split $182 billion in Q3 and $265 billion in Q4), bringing the total debt balance to just over $16 trillion by the end of September. While this is a commendable forecast, and one which certainly has provided to alleviate rumors that the US debt ceiling of $16.4 trillion would be breached by the mid/end of September, the chart below shows that it may be just a tad optimistic.
The only problem is that when one superimposes the projected debt issuance with the historical one. ...So maybe someone smarter than us can explain how the trendline of debt issued to date, and the forecasted debt differ by a cumulative $300 billion over the next 5 months? - Zerohedge
Charts courtesy of Zerohedge
Since the Daily Economist already pointed out last month that reliance on government reports equates to misinformation, then the chances that the Obama Administrations Treasury Department actually projecting correct data is simply propaganda. President Obama has spent more debt in his first 3 years than President Bush did in 8, and this includes paying for 2 wars.
No, the government will be bankrupt (Again) by the end of September, and the question will be, who will be able to use this politically to win the White House in November.