Chart courtesy of Bianco Research
Last week, total U.S. debt exceeded $15 trillion ($14.98 trillion of which counts against the debt ceiling). Accordingly, the U.S. is a mere $200 billion away from the current ceiling, negotiated amidst much rancor, recrimination and difficulty back in August. Estimates based on the current pace of debt accumulation are that the ceiling should be reached around the first of the new year. To raise this ceiling, the Super Committee must agree to $1.2 trillion in debt reduction over the next 10 years by Wednesday.
Expect the difficulty, recrimination, rancor and talk (threats) of default to return, post-haste.