Download now: Gold and Silver Mining Stocks

Geithner Urges Congress to Raise Federal Debt Limit

US Treasury Seeks 7.4% Increase to Debt Ceiling

Written by Luke Burgess
Posted August 10, 2009 at 3:24PM


U.S. Treasury Secretary Timothy Geithner wants to take the country even deeper into debt.

In a letter to U.S. lawmakers on Friday, Geithner urged Congress to raise the legal limit on the nation's credit card.

The amount the government may borrow is currently limited by law to $12.1 trillion, a cap that has been raised several times since the nation slipped into recession in December 2007. But Geithner says that it is "critically important" that Congress raise the country's credit limit in the next two months as the current debt limit could be reached as early mid-October.

Geithner didn't request a specific increase in the letter. But according to a report in the Washington Post, Treasury officials are expected to ask Congress to raise the debt cap to $13 trillion.

"It is critically important that Congress act before the limit is reached so that citizens and investors here and around the world can remain confident that the United States will always meet its obligations," Mr. Geithner said.

According to, the U.S. national public debt is already $11.675 trillion and increases by $3.91 billion per day.

Meanwhile, the U.S. deficit is on track to exceed $1.8 trillion, a postwar record compared with the size of the overall economy. The Congressional Budget Office has projected that the policies laid out in Obama's first budget would require an additional $9 trillion in borrowing over the next decade.

The massive size of this debt spells disaster for the long-term value of the US dollar. As a result, we continue to be extremely bullish on gold and silver.

Luke Burgess
Managing Editor, Gold World

What is the benefit of the email subscription?
While the Wealth Daily website offers access to the articles and reports, as a newsletter subscriber you will be among the first to receive access to the valuable advice, delivered directly to your inbox daily, and you will have access to deals on our exclusive services.
China's World Domination
And Why it's Not Going to Happen
Should Greece Pay Its Debt?
The Case for a Greek Default
Gold's Early Warning
Deflation May Be Coming
There's No Escaping Austrian Economics
Fed Bubble is Popping
More Secret Bank Bailouts Coming
The Best Reason to Buy Silver
A Long-term Outlook for Silver
China's World Domination
And Why it's Not Going to Happen
Legal Marijuana Investing
The Best Marijuana Stock for 2015 is...
Bitcoin and the Collapse of Greece
How to Hide Your Wealth from Central Planners
Gold's Early Warning
Deflation May Be Coming