Nation's Debt Hits Record High $16 Trillion
As the Democrats prepare for their convention in Charlotte, NC, they are greeting by the news just released that the total U.S. government debt eclipsed $16 trillion for the first time Friday, as total federal borrowing continues marching toward the $16.394 trillion borrowing limit.
Sen. Bob Corker (R-Tenn.) said, “Today, the United States passed a new unfortunate threshold which should be a call to action for Washington to finally address the potentially debilitating challenges posed by our unsustainable deficits and debt, which is now over 100 percent of our nation’s gross domestic product.”
Republicans have made the debt the centerpiece of their campaign to unseat President Obama, arguing that under Obama the debt has risen more than under any previous president. They put up two giant debt clocks last week at their convention in Tampa, Fla., to tally the red ink.
Since the Republicans finished their national convention last week and the Democrats start tonight, we dug through the amount of debt added by each of the last three presidents as a result of their policies.
When President Bill Clinton, a Democrat, took office in 1993, national debt stood at $4.1 trillion. He added about $1.5 trillion.
When Republican George W. Bush took over the White House, the debt had grown to $5 trillion. His programs added almost $4.9 trillion.
When Democratic President Barack Obama took over the White House in 2009, debt stood at $10.6 trillion. Today that number broke $16 trillion... a growth of more than $5 trillion in three-and-a-half years.
The government is currently running an average monthly deficit of $100 billion and is likely to hit the debt ceiling sometime in late December. The Treasury Department then can take emergency steps for several months to prevent the government from missing payments. Once the government hits the debt ceiling, it can no longer borrow money in excess of the statutory limit.
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Last Update on August 22, 2014 17:58 GMT
WASHINGTON (AP) -- Federal Reserve Chair Janet Yellen says the Great Recession complicated the Fed's ability to assess the U.S. job market and made it harder to determine when to adjust interest rates.
Yellen's remarks to an annual Fed conference in Jackson Hole, Wyoming, offer no signal that she's altered her view that the economy still needs Fed support from ultra-low interest rates. The timing of a Fed rate increase remains unclear.
She notes that while the unemployment rate has steadily declined, other gauges of the job market are harder to assess and may reflect continued weakness. These include high levels of people who have been unemployed for more than six months, many people working part time who would like full-time jobs and weak pay growth.
WASHINGTON (AP) -- The Obama administration will offer a new accommodation to religious nonprofits that object to covering birth control for their employees. The measure allows those groups to notify the government, rather than their insurance company, that birth control violates their religious beliefs.
The government is also extending an existing accommodation to some for-profit corporations like Hobby Lobby that's currently available only to nonprofits. That accommodation requires groups to sign a form transferring responsibility for paying for birth control to their insurers or third-party administrators.
The dual decisions embrace suggestions included in recent Supreme Court rulings. But they're unlikely to go far enough to satisfy religious groups. That's because they would still make the groups complicit in a system that provides birth control through their organizations' health plans.
ALBANY, N.Y. (AP) -- The maker of a popular line of wearable fitness-tracking devices says it has never sold personal data to advertisers, contrary to concerns raised by U.S. Sen. Charles Schumer.
Schumer said Friday he hopes other manufacturers of wearable devices adopt similarly transparent rules.
Many Americans wear fitness bracelets and monitors or use mobile apps to monitor their activity.
NEW YORK (AP) -- McDonald's has named a new president for its flagship U.S. division, marking the second change in less than two years.
The world's biggest hamburger chain says former McDonald's executive Mike Andres will replace Jeff Stratton, who is retiring, effective Oct. 15.
Stratton, 58, took over in late 2012 and replaced Jan Fields. That shakeup was made after McDonald's Corp. reported its first monthly sales drop in nearly a decade. Sales in the U.S. have remained weak ever since, with the company facing intensifying competition and changing eating habits.
McDonald's has said it's working on fixing basics, such as the speed of service and order accuracy.
Andres, 56, will report directly to CEO Don Thompson. Andres was most recently CEO of Logan's Roadhouse Inc.
MOLINE, Ill. (AP) -- Agricultural equipment maker Deere is laying off about 460 employees indefinitely from an Iowa tractor factory as it continues to adjust to market demand.
The Moline, Illinois, company said Friday the latest round of layoffs will be effective October 20. Deere said last week that it would lay off more than 600 employees at four Midwest factories that make harvesting and other agricultural equipment due to slumping demand.
Deere & Co. is the world's biggest farm equipment supplier and employs about 67,000 people globally.
It said earlier this month that it planned to reduce agricultural equipment production for the remainder of the year.
Company shares are down 63 cents to $85.58 in early trading.
NEW YORK (AP) -- Keurig Green Mountain says it struck a deal to make Kraft's branded coffees, such as Maxwell House and Gevalia, for its single-serve brewing systems in the U.S.
The companies did not disclose financial terms of the deal.
Keurig, based in Waterbury, Vermont, makes at-home brewing machines that let people make cups of coffee one serving at a time. The company is also working on a machine that would let people make cold, carbonated drinks at home, and has partnered with Coca-Cola to let people make various Coke drinks at home.
Kraft had also announced a deal to distribute packaged McDonald's coffee to supermarkets and other retailers. That deal will mean people will also be able to make McCafe drinks with Keurig machines.
Shares of Keurig rose 9 percent to $127.79.
Dynegy to spend $6.25B on power plant acquisitions
Dynegy plans to spend more than $6 billion to buy several coal and gas power generation plants from Duke Energy and Energy Capital Partners.
The Houston company says the deal will boost its presence in the Midwest and New England. Dynegy produces power that it sells through wholesale markets.
The company plans to spend $2.8 billion for Duke's assets and $3.45 billion for those of Energy Capital Partners, or ECP. It says the deal will add about 12,500 megawatts of coal and gas generation. Dynegy also expects the acquisitions to complement its existing business and add fuel diversification.
Dynegy Inc. says both deals should close by the end of next year's first quarter.
Shares of Dynegy are climbing in premarket trading.
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