Post-election economic tremors.
The federal government collided with the $7.384 trillion debt ceiling on October 14, forcing the Treasury to use "a series of bookkeeping maneuvers to keep financing the government's normal operations without breaching the debt ceiling," continued the report. With Treasury Secretary John Snow fresh out of accounting tricks and a series of debt auctions looming the week after the election, the administration needed immediate action to raise the debt ceiling. Administration allies in the GOP congressional leadership proposed raising the ceiling by $690 billion to $8.074 trillion.
Not surprisingly, the dollar's value continues to plunge as Washington continues its relentless accumulation of debt. Two days after the election, the dollar "fell to fresh nine-year lows ... and gold prices reached an 16-year peak amid concerns over tensions in the Middle East and a renewed belief in the dollar's longer-term decline," reported the November 4 Financial Times of London.
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|Title Annotation:||Insider Report|
|Publication:||The New American|
|Article Type:||Brief Article|
|Date:||Nov 29, 2004|
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