After recently passing the Senate, Obama has signed a bill into law that raises the Federal debt from 12.1 trillion to 12.4 trillion. There are many critics to this bill that was passed along partisan lines. However, the Obama administration has stated that they have no other choice. Reuters.com posted a story on how the debt limit has doubled over the past decade.
Congress approved an increase in the debt limit from $12.1 trillion on Thursday, winning two more months of funding for a record U.S. deficit as Obama tries to stimulate economic growth after the country's worst recession in 70 years.
Critics say Democrat Obama is making the deficit worse, but the White House blames the recession and unfunded cuts in taxes and prescription drug aid, which were all inherited from his Republican predecessor George W. Bush.
The U.S. government posted a record $1.4 trillion deficit in the fiscal year ended September 30 and is on track during the current fiscal year to spend at least $1 trillion more than it collects.