Economic News 12-14-12

Well, let’s get to it.

But first, you should probably DUCK

I don’t want you to hit your head on the debt ceiling.

😦

From ZeroHedge

“At the end of October, as the Tristate Area was being flooded by Hurricane Sandy, one after another Wall Street firm tried to position Sandy virtually as a non-event, with total damage “forecasts” by such “reputable” firms as Goldman Sachs and Bank of America forecasting a total bill between $10 and $20 billion (as anything above that and the Q3 damage to GDP would be far more substantial than their recently bullish forecasts had accounted for, and would also imply a substantial spillover effect into Q1 2013), the same as various insurance companies who had other far more obvious reasons to undershoot on the total damages. We said the opposite, and based on historic damage forecasts, predicted the damage would likely be between $50 and $100 billion. Once again the sellside consensus was wrong and a fringe blog was accurate, as the CBO has just released the Obama administration’s full aid request. Bottom line: $60.4 billion, or roughly what one year of what the ultimate tax hike compromise will bring into the government’s treasury. Furthermore, if fully funded by debt today, this amount would send the US (which has a $57 billion debt buffer as of this moment) over the debt ceiling immediately.

Expect this number to rise even more before all is said and done.”

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Oh look! They found a new place to use “unexpectedly” other than the Jobs numbers.

From FoxNews

“The U.S. budget deficit unexpectedly increased in November, to $172 billion  for the month — pushing the country one step closer to the limit on government  borrowing.

The Treasury said Wednesday the deficit last month was $22 billion more than  the October mark and up from $137 billion in November 2011.

The numbers paint a gloomy picture of the country’s fiscal health and could  complicate already delicate negotiations in Washington over tax rates and  spending cuts with a deadline looming to to avert a fiscal crisis.”

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This one is from TheWeeklyStandard

“”President Obama’s ‘Plan’ Adds $8.6 Trillion to the Debt,” the minority side of the Senate Budget Committee contends.”

“With Obama’s latest plan, debt in 2022 is expected to be $25.4 trillion; otherwise, in ten years, it is expected to be $25.8 trillion.”

“With the adoption of the Budget Control Act (which immediately raised the debt ceiling $2.1 trillion in exchange for $2.1 trillion in spending cuts over 10 years), the United States is presently on course to add $9 trillion to the gross federal debt by 2022,” write the Republicans on the Senate Budget Committee. ”

And yet the President is said to be in the better position in negotiations?

Really? How is that even possible?

His debt reduction plan does nothing, and does little to reduce the debt. Seriously? 10 years to reduce it less than a half a trillion and he calls this a plan?

This is madness.

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