US debt shot up $238 billion to reach 100
percent of gross domestic project after the government’s debt ceiling was
lifted, Treasury figures showed Wednesday.
Treasury borrowing jumped Tuesday, the data
showed, immediately after President Barack Obama signed into law an
increase in the debt ceiling as the country’s spending commitments reached a
breaking point and it threatened to default on its debt.
The new borrowing took total public debt to
$14.58 trillion, over end-2010 GDP of $14.53 trillion, and putting it in a
league with highly indebted countries like Italy and Belgium.
Public debt subject to the official debt
limit — a slightly tighter definition — was $14.53 trillion as of the end of
Tuesday, rising from the previous official cap of $14.29 trillion a day
Treasury had used extraordinary measures to
hold under the $14.29 trillion cap since reaching it on May 16, while
politicians battled over it and over addressing the country’s bloating deficit.
The official limit was hiked $400 billion on
Tuesday and will be increased in stages over the next 18 months.
The last time US debt topped the size of its
annual economy was in 1947 just after World War II. By 1981 it had fallen to 32.5
Ratings agencies have warned the country to
reduce its debt-to-GDP ratio quickly or facing losing its coveted AAA debt
Moody’s said Tuesday that the government
needed to stabilize the ratio at 73 percent by 2015 “to ensure that the long-run
fiscal trajectory remains compatible with a AAA rating.”