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Post-election economic tremors.

On November 3, with most of the nation still fixated on the closely fought presidential election, the Bush administration quietly announced "that it will run out of maneuvering room to manage the government's massive borrowing needs in two weeks, putting more pressure on Congress to raise the debt ceiling when it convenes for a special post-election session," reported the AP.

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
Geographic Code:1USA
Date:Nov 29, 2004
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