In the last two weeks of 2012, total loans and leases at commercial banks in the US surged by $82 bln. That was sharpest two week increase in four years. What is happening here? One likely explanation is that vendors and other recipients of government payments may be getting bank loans to cover day-to-day operating expenses as government payments slow to a crawl under the debt ceiling. This is resulting in a temporary surge in bank credit as seen here and it could, potentially, dampen some of the negative impact of the current fiscal stalemate. However, you see how government "saving" is now just translating into non-government dissaving (debt growth). Too bad the clowns in Washington don't understand this.