Research Briefing

Instead Of Reining In His Rampant Spending, Obama Has Requested Another Increase To The Debt Ceiling

DESPITE BEING RESPONSIBLE FOR THE MOST RAPID RISE IN DEBT UNDER ANY PRESIDENT, OBAMA REQUSTED ANOTHER INCREASE TO THE DEBT CEILING

Obama Has Officially Requested An Increase To The Debt Limit. “President Obama has officially requested an increase to the statutory debt limit. The formal request gives both chambers 15 days to vote on whether to approve the $1.2 trillion hike. The House plans to vote on this request when it returns next week, a spokeswoman for Majority Leader Eric Cantor (R-Va.) said.” (Peter Schroeder, “White House Requests Debt Limit Increase,” The Hill’s “On The Money,” 1/12/12)

• In A Letter, Obama Said An Increase Is “Required To Meet Existing Commitments.” “In a letter to House and Senate leaders sent Thursday, the president informed the Congress that the federal government had come within $100 billion of the existing limit and another increase is ‘required to meet existing commitments.’ The boost will be the third and final increase to the ceiling under the debt limit deal struck in August, and is intended to cover the government's borrowing through the 2012 elections.” (Peter Schroeder, “White House Requests Debt Limit Increase,” The Hill’s “On The Money,” 1/12/12)
  
  
• Obama’s Request Would Raise The Debt Limit To $16.4 Trillion. “This final request would increase the debt limit from its current level of roughly $15.2 trillion to $16.4 trillion.” (James O’Toole and Alex Mooney, “Obama Seeks $1.2 Trillion Debt Ceiling Increase,” CNN Money, 12/27/11)

OBAMA ACKNOWLEGED THAT FAILING TO CONTROL OUR DEBT COULD LEAD TO A DOUBLE DIP RECESSION AND ECONOMISTS ECHO THE DANGER

In 2009, Obama Believed That A Failure To Control The Deficit Would “Make It Harder For The Economy To Grow.” “Obama wants to reduce the deficit because he’s concerned that over time, federal borrowing will make it harder for the U.S. economy to grow and create jobs, said the official, speaking on the condition of anonymity.”  (Hans Nichols, “Obama Plans To Reduce Budget Deficit To $533 Billion By 2013,” Bloomberg, 2/21/09)

• Obama Recognized That If We Failed To Control Our Debt, It Could Lead To A Double-Dip Recession. OBAMA: “It is important though to recognize if we keep on adding to the debt, even in the midst of this recovery, that at some point, people could lose confidence in the U.S. economy in a way that could actually lead to a double-dip recession.” (Fox News, “Interview With Major Garrett,” 11/18/09)

The Government Is In A Debt Trap That Could Be Fueling The Recession. “Our recession may be driven, at this point, by the balance sheet of the government. Repairing that balance sheet by lowering spending may be the only way out of the debt trap. Call it the New Paradox of Thrift: the government can stimulate growth only by refusing to borrow. We need thrift all the way down.” (John Carney, “From Jackson Hole: A Defense Of The Debt Ceiling,” CNBC, 8/29/11)

• CBO Director Douglas Elmendorf: Growing Debt Increases Risk Of “Sudden Fiscal Crisis.” “Growing debt also would increase the probability of a sudden fiscal crisis, during which investors would lose confidence in the government’s ability to manage its budget and the government would thereby lose its ability to borrow at affordable rates.” (Douglas Elmendorf, “CBO’s 2011 Long-Term Budget Outlook,” Congressional Budget Office “Director’s Blog”, 6/22/11)

• Economists At The Bank Of International Settlements Concluded That Debt Beyond As Much As 80 Percent Of GDP Could Thwart Economic Growth. “Its authors—a trio of economists from the Bank for International Settlements—demonstrate that when government debt reaches beyond a certain threshold it begins to sap growth from the economy. Government debt beyond a threshold ranging from 80 to 100 percent of gross domestic product (GDP) begins to thwart growth.” (John Carney, “From Jackson Hole: A Defense Of The Debt Ceiling,” CNBC, 8/29/11)

CANDIDATE OBAMA CALLED RAISING THE DEBT LIMIT “UNPATRIOTIC,” BUT PRESIDENT OBAMA REIGNS AS THE “UNDISPUTED DEBT KING"

THEN: In 2008, Obama Said Adding $4 Trillion To The National Debt Was “Irresponsible. It’s Unpatriotic.” OBAMA: “The problem is, is that the way Bush has done it over the last eight years is to take out a credit card from the Bank of China in the name of our children, driving up our national debt from $5 trillion for the first 42 presidents - #43 added $4 trillion by his lonesome, so that we now have over $9 trillion of debt that we are going to have to pay back -- $30,000 for every man, woman and child. That's irresponsible. It's unpatriotic.” (Sen. Barack Obama, Remarks At A Campaign Event, Fargo, ND, 7/3/08)

• Click Here To Watch Obama Call $4 Trillion In New Debt “Unpatriotic”

NOW: Politifact: “Obama Is The Undisputed Debt King Of The Last Five Presidents.” “So by this measurement -- potentially a more important one -- Obama is the undisputed debt king of the last five presidents, rather than the guy who added a piddling amount to the debt, as Pelosi’s chart suggested.” (“Nancy Pelosi Posts Questionable Chart On Debt Accumulation By Barack Obama, Predecessors,” Politifact, 5/19/11)

Obama Is Responsible For “The Most Rapid Increase In The Debt Under Any U.S. President.” “The latest posting by the Treasury Department shows the national debt has now increased $4 trillion on President Obama's watch. The debt was $10.626 trillion on the day Mr. Obama took office. The latest calculation from Treasury shows the debt has now hit $14.639 trillion. It's the most rapid increase in the debt under any U.S. president.” (Mark Knoller, “National Debt Has Increased $4 Trillion Under Obama,” CBS News, 8/22/11)

• WaPo: “[Obama’s] Record On The Growth Of National Debt Is The Worst Of Recent Presidents.” “But the fact remains that under basic economic measures, not phony ones, his record on the growth of the national debt is the worst of recent presidents.” (Glenn Kessler, “A Bogus Chart On Obama And The Debt Gets A New Lease On Life,” The Washington Post's "The Fact Checker", 9/29/11)

The Current National Debt Is $15.2 Trillion And Has Officially Surpassed 100 Percent Of GDP. (U.S. Treasury Department, Accessed 1/9/12, Bureau Of Economic Analysis, Accessed 1/17/12)

• $4.6 Trillion Has Been Added To The Debt Since Obama Took Office.  (U.S. Treasury Department, Accessed 1/17/12)
• Obama’s FY2012 Budget Would Add $9.1 Trillion To The Debt Through FY2021. (OMB, 9/1/11)
• The Projected Federal Debt In 2021 Due To Obama’s Binge Spending Is $24.0 Billion.  (OMB, 9/1/11)