Monday, December 1, 2014

BloggeRhythms

In an article today that few will probably bother to read, Terence P. Jeffrey, editor in chief of CNSNews.com writes about newly released information regarding the national debt.
 
Mr. Jeffrey begins by reporting that since fiscal year 2015 started just eight weeks ago for the government, “Treasury took in $341,591,000,000 in revenues. That was a record for the period between Oct. 1 and Nov. 25. But that record $341,591,000,000 in revenues was not enough to finance ongoing government spending let alone pay off old debt.”
 
The Daily Treasury Statement released Wednesday afternoon “revealed that the U.S. Treasury has been forced to issue $1,040,965,000,000 in new debt since fiscal 2015 started just eight weeks ago in order to raise the money to pay off Treasury securities that were maturing and to cover new deficit spending by the government.
 
The Treasury also drew down its cash balance by $45.057 billion during the period, starting with $126,568,000,000 in cash and ending with $81,511,000,000.”
 
Mr. Jeffrey then explained that, “The only way the Treasury could handle the $942,103,000,000 in old debt that matured during the period plus finance the new deficit spending the government engaged in was to roll over the old debt into new debt and issue enough additional new debt to cover the new deficit spending.”
 
What was most interesting, however, is the description of the debt situation presented by the Securities and Exchange Commission, as follows:   
 
“This mode of financing the federal government resembles what the Securities and Exchange Commission calls a Ponzi scheme. “A Ponzi scheme," they say, “is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors.
 
“With little or no legitimate earnings, the schemes require a consistent flow of money from new investors to continue,” explains the SEC. “Ponzi schemes tend to collapse when it becomes difficult to recruit new investors or when a large number of investors ask to cash out.”
 
While the quarterly results add confirmation to the case that the current administration’s fiscal policies are by far the worst since Jimmy Carter’s, the magnitude of the situation seems incredible. Because in just eight weeks, the government took in more than a quarter of a trillion dollars, yet that wasn’t enough to pay off current spending nor reduce any of the current debt.
 
Reading the last sentence above was remindful of my entry for November 25th, which began: “Liberal site Policy.Mic decries the president’s failure to expand ObamaCare in his sweeping executive action on immigration: “His latest actions do not provide those newly-protected immigrants access to health care benefits under the Affordable Care Act, preventing millions of people from purchasing coverage and receiving subsidies. Obama could have, within the parameters of existing law, broadened the scope of the program as part of his executive action.”
 
And there you have in one brief paragraph. a perfect example of the Liberal mindset that’s taken this nation from its former position as the most fiscally sound in the world, and reduced it to a debt-ridden society that will soon have no creditworthiness at all.
 
At the end of Mr. Jeffrey’s column, reader Tony Konte commented, “That's all without Al Sharpton paying his 4.5 million in back taxes! Wow.”
 
That’s it for today folks.
 
Adios

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