Dispatches from District 48
It took into the mid-1960's for the Federal government to accumulate $328 billion in debt (yeah, I know, nominal dollars). It rose that much in one day last week.
This once has been bothering me, because I think there's probably a bigger issue under the headline. They didn't actually spend 328 billion in one day. And I doubt they issued 328 billion in new debt in one day. So what did they do?
I'm assuming they notationally moved 328 billion of debt incurred under 'extraordinary measures' from off-book debt to on-book debt.
But in doing so, aren't they admitting that it should of been on-book in the first place? And if it should of been on-book and it wasn't, isn't that fraud for any other organization?
"But in doing so, aren't they admitting that it should of been on-book in the first place?" There actions prove that it should have been on book. I doubt they'd ever admit it.
Yeah, and that does not count the issuing eighty five billion dollars of Federal Reserve Notes, which when you read the fine print on the money, is debt with a maturity on demand, a trillion-dollar per year program to prop up ten-year Treasury prices, postpone much higher borrowing costs, and screw senior citizens for their stupidity to save for retirement.
Here is a listing of the Treasury’s “Extraordinary Measures”
I’ve not had a chance to research, but my guess is this gap up was a reset of those measures.
Either way, get used to massive debt spirals, once Obamascare really kicks in next calendar year.
Per the government inflation calculator 328 billion in 1965 is 2.4 trillion today. Still spending 1/8 of the total inflation adjusted debt from the first 184 years of our government
We had something like 100 days where the official debt figure did not go up, because they were playing games with the official number, when the debt limit increase was signed they were able to record that debt in one day.
No what happened was they stopped reporting the increases in debt for about 100 days - Drudge was keeping note on that, - but they were spending it all along - faking the number. When the limit was increased they recorded the 100 or so days of debt in one entry.