18 Nov 2009

[Watchman]

US public debt tops US$12t

Singapore Straits Times
Nov 18, 2009



The debt is quickly approaching the statutory limit of US$12.104 trillion, meaning Congress would have to raise the ceiling to prevent a shutdown of government operations. -- PHOTO: REUTERS


WASHINGTON - THE US public debt topped US$12 trillion (S$16.8 trillion) for the first time in history, Treasury officials disclosed on Tuesday, moving past a key barrier that raised hackles in Congress.

Treasury data showed Monday's outstanding debt at US$12.031 trillion, up from US$11.999 trillion on Friday.

The ballooning debt reflects the massive deficit spending by the government in an effort to revive an ailing economy over more than one year. The public debt topped US$10 trillion in September 2008.

The debt is quickly approaching the statutory limit of US$12.104 trillion, meaning Congress would have to raise the ceiling to prevent a shutdown of government operations.

Senate Republican Leader Mitch McConnell said the debt figures represented unwelcome news and that the US$787 billion stimulus plan passed earlier this year failed to keep unemployment from topping 10 per cent.

'This should serve as an urgent warning that the government can't keep spending money it doesn't have,' he said. 'Thousand-page bills that spend too much, borrow too much and tax too much are exactly the wrong approach for creating jobs. It's my sincere hope that the administration will work with us on bipartisan efforts to reduce the debt, lower health care costs and help employers grow jobs.' -- AFP