In a story today in the Washington Times, the headline said that U.S. debt rose a record $328,000,000,000.00 in one day. This happened yesterday, Thursday October 17th, the day that the debt ceiling was raised due to a political ploy. There was much left unsaid, but then the government could not tell the truth about the debt ceiling without facing embarrassment and mass scrutiny.
What was left unsaid was that the debt ceiling was actually reached last May, not on October 17th. The fraud and scam perpetrated by the Obama administration, the Federal Reserve and the Treasury Department began last May when the national debt was fast approaching the debt ceiling limit. In fact, it was about to breach the $17 trillion level even then. Yesterday, the debt went from approximately $16.747 trillion to $17.076 trillion overnight. The debt stood at $16.805 0n May 1st and actually was reported at a lower number since that time. That is impossible.
What does this mean? It means that since May, the government was “replenishing its stock of “extraordinary measures” by borrowing federal funds for the past five months so as not to exceed the debt ceiling limit. The Treasury did this by borrowing $400 billion from “other funds.” The government was not allowed to borrow conventionally, so it did so under the table. The Treasury Department simply cooked the books so to speak in order for the government to hide the truth by using phony accounting methods. In other words, this was a scam.
Why the timing for the so-called debt ceiling fight? Why October instead of May? Why did the American citizenry not see through this ruse? One thing is obvious here, the government fully understands that the economically ignorant and apathetic sheep in this country are very easy to fool. How else could such a fraud be committed in full view of everyone?
Even worse, and something not mentioned by any politician that I know of, is that the Congress, both Republicans and Democrats, used another sneaky tactic to allow for even more borrowing, spending and debt increase. In this bi-partisan deal by Congress, instead of setting a borrowing limit that caps the amount of deficit borrowing as is the norm, only a deadline was set. That means that the government can borrow and spend as much as it wants until the new deadline of February 7th, 2014. If the government spends only at the level it has since last May, and it can certainly spend more, then the debt will rise just during this interim period by over $700,000,000,000.00.
The president and the Congress are cheaters, scoundrels and liars, but aren’t you glad that the government is now back in business?