Well, it’s looking like the Senate was unable to muster enough votes to reject the newest debt ceiling hike in a 52 to 44 vote. Due to take effect this Friday, we will be looking at a new ceiling of $16.4 trillion with our current levels reaching the $15.4 trillion mark.
From Zerohedge:
“Since roughly $100 billion was plundered from Pension Funds in the past month, The US will have about $15.4 trillion in debt with the Monday DTS. The question then is how long will the $1 trillion in debt capacity last: at $125 billion/month it won’t be enough to carry the US past the election without another massive debt ceiling spectacle.While Congress recently voted down the increase in the US debt ceiling, that vote was largely irrelevant. And all that matters is how the Senate will vote. Watch it live in progress below. It is virtually unlikely that the process of debt ceiling increase will be overturned so within minutes the US should have a brand spaking new debt ceiling of $16.4 trillion.”
Not to mention Treasuries just hit an all time low yesterday, now offering a tantalizing real yield of -2.26 based on 3% inflation. Ouch.
via Update: America Has A $16.4 Trillion Debt Ceiling In 52-44 Senate Vote | ZeroHedge.