Obama budget: National debt will be $1 trillion higher in a decade than forecastThis is going to be one hell of an election. If this budget isn't enough to get the ball rolling, Republicans don't want to face the electorate having cut spending and they're going to allow the extension of the payroll tax break with no offsetting cuts. ZeroHedge tells us what that means in GOP Finally Discovers Obama's Achilles Heel: Just Let Him Do What He Does... And Encourage It!
That's right - no offsetting spending cuts. Which means one thing - much more debt. How much more? At least $160 billion much. Which means that the debt ceiling discussion will hit not in November as we speculated previously, but potentially as soon as September.Last year the debt ceiling debate took place during a period of unease in the markets. Panic over Greece and a downgrade of the U.S. debt rating were the headlines that dominated this period. Now, we're headed for a potentially similar period in September 2012, a month that is historically the worst performing due to the prevalence of crashes and panics.
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