National Debt Soars $500B In Under A Month

Financial Bailout Plan The Primary Culprit In Record-Setting Debt Accumulation

(CBS)  This story was written by CBS News White House correspondent Mark Knoller

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It’s the surge you won’t hear anyone boast about.

Never before in U.S. history has the national debt increased as much and as rapidly as it has over the past month.

Since September 30, the day the national debt hit the $10-trillion mark for the first time, the government has run up over $500 billion in new debt.

That’s more than the federal deficit for the entire 2008 fiscal year, which ended September 30. And it’s the most rapid increase in the national debt ever: over half a trillion dollars in less than a month - 23 days to be exact.

The government’s latest calculation of the national debt stands at $10,530,893,033,778.21 - that’s $10.5-trillion for short. It took less than four months for it to rocket to that level from $9.5 trillion on July 21.

Less than four months! To put it in perspective, consider this: it took the U.S. government over four decades, from 1940 to 1982, to run up its first trillion dollars of debt.

The second and third trillions were racked up much more quickly - each in just four years. And it only took from 1990 to 1992 for the national debt to hit $4 trillion.

On the day President Bush was sworn in, the debt stood at $5.7 trillion. Less than eight years later, the it’s within days of having swelled $5 trillion dollars on his watch - an embarrassing milestone for a president who considers himself a conservative and an advocate of fiscal discipline.

What’s to blame for the most recent surge in the debt? Above all else, it’s the federal government's response to the financial crisis.

“It’s the Supplementary Financing Program being run by Treasury to provide cash for the Federal Reserve,” says Corrine Hirsh, spokeswoman for the White House Office of Management and Budget.

By that, she means the billions of dollars disbursed by the Fed to keep the financial markets at home and abroad from collapsing. It includes the $124 billion used to keep insurance industry giant American International Group from going bust.

And this week, the Treasury Department started to spend the $700 billion dollars in the congressionally authorized bailout program, so the national debt can be expected to soar even more rapidly in the coming months.

But on January 20, it becomes another president’s problem. And unless he slashes federal spending or enacts major tax hikes, the ballooning deficit and debt leave no money for any of the big ticket programs he's promised to deliver.

Instead, the 44th president will have to deal with the problem of how to pay the interest on the expanding debt. If past practice holds, it’s a good bet the government will just borrow the money.

[ahrats]

5 trillion increase in 8 years how much of this went to the middle class, zero. This money went to big corporations that support BUSH and the replublicans. It seem every time we let replubicans run the U.S. they get richer and the middle class has to pay for it. If you have 1/2 a brain vote for the democrats at least they will bring the deficit down, remember what they did under Cliton gave us a surplus which the conseratives spent on Iraq so they could kill some more of the middle and lower class people, you think the rich are fighting the war , no their the ones who sacrifice others so they can make more money.

[thecp29]

The interest on the national debt is an ever moving target. @ $10.5T $700B is about a good a SWAG as any. What''s also extraordinary is the amount of defense budget which rose under Bush by 200% so when Obama states he wants to cut it by 25%...that''s $180B from the $710B it now is. $537B still is about 125% growth over 2000. You betcha Bush..hellovajob....

[PacificGatePost]

It is evident that there is little agreement on the source of the current economic problem facing the nation. With so much confusion, and fingers pointing in opposite directions, NOTHING will get done. Obama has no understanding of economics, and neither does McCain. That doesn''t mean that they can''t appoint talent to help them, but what it does mean is that the individual elected on the basis of supposedly having a vision for the country, will have none as it pertains to the core of its foundation.

Wishes and hope are wonderful ephemerally positive energies for a society to feel, nevertheless, 350 million need to pay the rent and feed themselves.

Pretending that the economic fiasco facing the country is the result of Republican / Bush agendas will only lead to more disastrous policies like the ones that created the mess through the past fifteen years. It is incorrect that "laissez-faire" economics were to blame. If anything, there was tremendous government and bureaucratic meddling to promulgate the process.
This financial mess everyone is in, however, lies more at the feet of a Congress that looked the other way. This was simply Humans acting Human. For example, check out the amount doled out to Congress by Fannie Mae and Freddie Mac... to whom and how much.

---- Where will the magic come from to REALLY solve this mess?



http://pacificgatepost.blogspot.com/2008/10/leadership-missing-in-action-dont-blame.html

[atheismwins]

The crazy thing about reading this is, some mccain followers still dont understand it after reading this. George Bush and his republican party have put this nation in a world of hurt. Sarah Palin says obama pals around with Terrorist, why doesnt she say the same about the president who borrowed outrageous amounts of money from china, or from other countries who build bombs for countries like iran and pakistan.

Bush has killed this nations and then when he leaves he is going to leave this mess for the next president and people think his friend mccain is the answer. I know he doesnt get in because if mccain does, we will be in big trouble. we are in trouble now but wait and see if mccain become president
Posted by thefan08 at 11:11 AM : Nov 02, 2008
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I can''t tell you how many pro-Democrat posts I have read over the last six months. It has been A LOT.

Tell me. What will our deficit be for each of the next 8 years, assuming a Democratic monopoly?

What will be the odds of a Balanced Budget Amendment passing?

[thefan08-2009]

The crazy thing about reading this is, some mccain followers still dont understand it after reading this. George Bush and his republican party have put this nation in a world of hurt. Sarah Palin says obama pals around with Terrorist, why doesnt she say the same about the president who borrowed outrageous amounts of money from china, or from other countries who build bombs for countries like iran and pakistan.

Bush has killed this nations and then when he leaves he is going to leave this mess for the next president and people think his friend mccain is the answer. I know he doesnt get in because if mccain does, we will be in big trouble. we are in trouble now but wait and see if mccain become president

[atheismwins]

Tax and spend?? The ruins of REPUBLICAN tax and spend are all around you!

Redistribute? WAKE UP!! The Republicans already have your money! They''''ve taxed you and cut every program that might benefit the common good.

Republicans doubled the national debt in 8 years and mortgaged our children''''s future. They''''ve given billions to banks and oil companies -- nothing for social security, health care or veterans.

Republican policies gutted your college/retirement IRA and now your job''''s at risk.

We can''''t stand four more years of corruption and deceit. And McCain PROMISES more of the same.
Posted by OldTwo at 10:09 AM : Nov 02, 2008
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The Republican monopoly did not work.

I think it is good to vote Democrat for president. And I intend to do so.

This Democrat angel, Republican demon bit has got to go, though.

It will take a Republican Congress to pass a Balanced Budget Amendment. And then it would go to the states for approval.

Is there one American who thinks a Democratic monopoly is going to balance the budget? Or even come close?

[oldtwo]

Tax and spend?? The ruins of REPUBLICAN tax and spend are all around you!

Redistribute? WAKE UP!! The Republicans already have your money! They''ve taxed you and cut every program that might benefit the common good.

Republicans doubled the national debt in 8 years and mortgaged our children''s future. They''ve given billions to banks and oil companies -- nothing for social security, health care or veterans.

Republican policies gutted your college/retirement IRA and now your job''s at risk.

We can''t stand four more years of corruption and deceit. And McCain PROMISES more of the same.

[atheismwins]

Biden was for it.

I''''m sorry that phonies like Reid, Lieberman, and WELLSTONE were against it.
Posted by Hypnotoad72 at 08:42 AM : Nov 02, 2008
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In 1997 the vote was 66-34. 67 votes (2/3) were needed to send the Amendment to the states for ratification.

Republicans voted 55-0 for the Amendment. Democrats voted 11-34 against.

There are things going on behind the scenes, as well.

In 1995 the vote also failed in the Senate by one.
Six Democratic Senators reversed longstanding positions, and voted against the Amendment. Votes were arranged so those up for re-election would vote for it.

Democratic Senators are like a foreign, invading army. Up until now Americans have chosen to appease them.

[hypnotoad72]

Why would people vote Democrat for Senate?

Democratic Senators are violently opposed to a Balanced Budget Amendment.

I plan to vote Democrat for president. We''''ve seen that a Republican monopoly causes them to forget all about a Balanced Budget Amendment.

Voting Dem for Senate is defeatism. It''''s saying we give up. We can''''t handle reality. We can''''t pay our bills.

No one will enjoy the consequences of reckless debt. The first consequence will most likely be higher taxes. Higher taxes lead to higher unemployment.

Vote Dem for president until Republicans get a Balanced Budget Amendment through Congress.

Posted by AtheismWins at 01:53 AM : Nov 02, 2008
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http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=105&session=1&vote=00024

Biden was for it.

I''m sorry that phonies like Reid, Lieberman, and WELLSTONE were against it.

But consider this:

Most bills have extra sundries tacked on. It''s sleazy but it happens. I''ll see if I can find a link finding verbiage; more than just the "Measure Title".

[norepubs]

.................The entire $10 trillion was run up by republican gangsters. Reagan,and Bu$h the second.
''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''


That''''s $1666 for evey man, woman and child in the country. I hope your kids enjoy paying that plus what we already owe

[atheismwins]

Why would people vote Democrat for Senate?

Democratic Senators are violently opposed to a Balanced Budget Amendment.

I plan to vote Democrat for president. We''ve seen that a Republican monopoly causes them to forget all about a Balanced Budget Amendment.

Voting Dem for Senate is defeatism. It''s saying we give up. We can''t handle reality. We can''t pay our bills.

No one will enjoy the consequences of reckless debt. The first consequence will most likely be higher taxes. Higher taxes lead to higher unemployment.

Vote Dem for president until Republicans get a Balanced Budget Amendment through Congress.

[tryhonesty]

No matter who wins this election, RepubliCONs Bush (the idiot) & Cheney (the war profiteer!) are still performing treason against America''s present and future...

[andrewsac]

Iamdemocrat, we can all use da Google and internet machine. Mine took me to the Honolulu Star Bulletin, where it says that today (11/01/08), Martin was denied access to the birth certificate - by no less than the Hawaii Supreme Court. He''s not a relative, and he''s not Barak, so he has NO RIGHT to see it. A day late, as usual. Probably NOT a dem, I can bet. Probably just a Troll that sees the handwriting on the wall. Poor baby. Next time, preddle this S*** on a site that laps this stuff up like candy.

[andrewsac]

iamdemocrat, you are a day late, I think. According to the Honolulu Star Bulletin TODAY, the Hawaii State Supreme Court refused to hear the case, and denied the request to see the birth cert. Only the person can request it, or a close relative. Nice try feeding us false info. As it turns out, we know how to use the internet machine too.

[yongamerica]

The five hundred billion came from the US Treasury. GW Bush didn''t need Congress to withdraw that money and spend it as he saw fit. He silently withdrew it while crying WOLF! This money is on top of the seven hundred billion bailout bill Congress passed.

[homespunlady]

I just finished watching a 45 minute video that''s on the net called "Money as Debt" put out by a Canadian group (ottawafro ?) that explains our current situation the BEST I HAVE EVER SEEN or read.

It''s well worth the search and watching as it simply explains how the monetary system has been working and doesn''t really rant or accuse but does show how things work and the possible pitfalls - one of which we are NOW facing - and the video was made in 2006.

SMART presenters.

As it stands now I''m hearing about the planned PROTESTS on Nov 22 at all the federal reserve locations to push for changes to END the Fed and alter the abuses that apparently are now ENDEMIC throughout this interconnected world system under the PRIVATE CONTROL of a TINY FEW.

It''s disconcerting that so many people are SO CLUELESS about their indentured servitude and easily evaporated "investments".

Although recent events just MIGHT motivate more to take a CLOSER LOOK at what''s actually "behind the curtain".

Unquestioning FAITH might be OK concerning religious ideals but placing such UNQUESTIONING FAITH on fallible humans that CLAIM (financial) EXPERTISE has lead to countless tragedies.

[joe68sg1]

Something to be proud of...
Great job GW
Let''s give more bailout money to corporations so it can ''trickle'' back down to us average Americans.

Lock them up...I think this is called robbery.
Throw away the key!!!

[vhammon]

Remember that the reported deficit is a cash-based budget deficit. It is not the actual, accrual-based deficit, which has been running at least half again as much as the reported budget deficit.

Eighty percent of our current national debt was run up by jut three Republican presidents: Reagan, Bush I and Bush II. The interest payments on this debt took over 25% of the Operating Budget in 2007 and will take an even larger chunk out of the 2008 budget.

Supporters of the cut-your-taxes-and-government-spending-talking Republicans need to take a close look at the Republican record. Historically Republicans simply borrow and spend and run up monstrous commitments to investors.

[ubrew12]

donbl1 said: "The Democratic Congress of the last two years will have increased the debt by $2T. "

Who cut taxes, dipsh(t?

You want to rewrite history? Try not to choose history the rest of us have lived through.

[ubrew12]

iamdemocrat said: "Obama has brazenly been lying to the American people. "We just lobbed a grenade into the final weekend of the presidential campaign," says Andy."

Ok, there''s desperate and then there''s just wildly desperate. Right now, you are officially funny, iamdemocrat. I''d laugh, but I pity you instead.