October Surprise?

Well not a surprise, maybe, but certainly this could impact the election. According to Senator Rob Portman (R-OH), pictured, the current debt ceiling may be breached right before the election.

According to Table 6-2 in the President’s Budget’s “Analytical Perspectives” volume, the President estimates the total debt subject to the statutory limit – growing by $132 billion per month – will reach $16.334 trillion at the end of FY 2012 (September 30, 2012). This is just $60 billion below the current debt limit. Thus, without a change in the debt trajectory, the debt ceiling will be eclipsed by October 15, 2012 unless the Department of Treasury again uses emergency protocols to shift that date past Election Day 2012.

You can bet big bucks that Timmy the Tax Cheat will be pulling out ALL the stops to make sure that the debt crisis rolls past election day.

Portman makes another good point.

. . .his [Obama's] new budget increases spending and projects that Washington will be hitting the debt ceiling again in mid-October – burning through a $2.1 trillion debt limit increase in just over 14 months. This is an unfortunate but clear signal to the American people that Washington is spending too much, borrowing too much, and putting our nation’s fiscal stability at risk.
. . . President Obama’s budget increases the debt by $11 trillion over ten years, falling woefully short of addressing this pending fiscal crisis. Chock-full of gimmicks and stimulus spending, this is a political document . . .

Well said.

By the way, I told you so.