Thursday, August 4, 2011

Debt Ceiling Bill and the Economy - #3136 - U.S. Borrowing Tops 100% of Gross National Product Treasury (2) Poll: Just 22% of Tea Partiers Approve of Debt Deal - Hot Air (3) Great News: Service Industry Now Slowing Down, Too - Hot Air

US debt shot up $238 billion to reach 100 percent of gross domestic project after the government's debt ceiling was lifted, Treasury figures showed Wednesday. Treasury borrowing jumped Tuesday, the data showed, immediately after President Barack Obama signed into law an increase in the debt ceiling as the country's spending commitments reached a breaking point and it threatened to default on its debt.  The new borrowing took total public debt to $14.58 trillion, over end-2010 GDP of $14.53 trillion, and putting it in a league with highly indebted countries like Italy and Belgium.  Public debt subject to the official debt limit -- a slightly tighter definition -- was $14.53 trillion as of the end of Tuesday, rising from the previous official cap of $14.29 trillion a day earlier.  Treasury had used extraordinary measures to hold under the $14.29 trillion cap since reaching it on May 16, while politicians battled over it and over addressing the country's bloating deficit.  Read more........

Poll: Just 22% of Tea Partiers Approve of Debt Deal - Hot Air - While pundits across the political spectrum tout the debt deal as a win for the Tea Party and as progressives betray their frustration at Tea Party principles with appalling, anything-but-civil rhetoric, Tea Partiers themselves confess themselves displeased with the debt accord that took such an agonizingly long period of non-productivity to reach:  In a USA TODAY/Gallup Poll taken hours after the Senate passed and President Obama signed the deal, a 46% plurality disapprove of the agreement; 39% approve. Only one in five see it as a “step forward” in addressing the federal debt. …  The poll finds some paradoxes.  Though Tea Party conservatives succeeded in setting the parameters of the debate, supporters of the Tea Party are among those most unhappy with the outcome. Only 22% of Tea Party supporters approve of the deal, compared with 26% of Republicans generally and 58% of Democrats.  And although Obama and congressional Democrats failed to make higher taxes on the wealthy part of the agreement, moderate and liberal Democrats were among those who rate it most highly. Two-thirds of moderate Democrats approve of the agreement.  Read more........

Great News: Service Industry Now Slowing Down, Too - Hot Air - On Monday, the Institute for Supply Management reported a significant drop in its measure for manufacturing activity in a first glance at economic performance in the third quarter of 2011. Today, ISM follows up that report with another that shows another significant drop in non-manufacturing activity as their services index fell to a low not seen since February 2010. Reuters found this rather surprising:  The pace of growth in the services sector ticked down unexpectedly in July to the lowest level since February 2010, while the number of jobs created by the private sector also slowed, separate reports showed on Wednesday.  The Institute for Supply Management said its services index fell to 52.7 last month from 53.3 in June. The reading fell shy of economists’ forecasts for 53.6, according to a Reuters survey. …  “It is slightly weaker than expected, most of the key gauges were down. It looks like this confirms that we are in a bit of a soft patch here,” said Rudy Narvas, senior economist at Societe Generale in New York.  Read more........

No comments:

Post a Comment