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October sees second largest debt increase in US history

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The federal debt made its second biggest one-month leap in October, when it rose by $409 billion, or about 2.5 percent, according to the Daily U.S. Treasury Statement.

The additional debt amounts to an estimated $3,567 per household, CNS News reported.

A debt ceiling typically limits how much new debt the federal government can pile on, but congressional negotiations in October temporarily opened the purse strings. CNS reported:

In the continuing resolution deal sealed by President Barack Obama and the Republican congressional leadership last month, the legal limit on the federal debt was suspended until February 7 of next year.

The single greatest one-month increase in the federal government’s debt came in October 2008, when Congress enacted the Troubled Asset Relief Program to bail out the financial industry.

In that month, the debt subject to the legal limit climbed by about $545 billion.

Whether you agree with the bank bailout of 2008, the financial crisis offered a good excuse for the feds to bust the debt ceiling. The Troubled Asset Relief Program, which came to be known as TARP, set aside $700 billion to purchase assets and equity from “at-risk” financial institutions.

The Obama administration has no such excuse this time. It’s just a White House with a temporarily unlimited credit card.

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