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December 19, 2005 The U.S. Treasury’s Bureau of Public Debt reports that as of December 6, 2005, the debt has increased $30 billion in just four working days since the beginning of the month. By itself, that’s a record average of more than seven billion a day in new debt. But it’s much worse – fifty percent worse. On closer inspection, the fraudulent IH (Intragovernmental Holdings) portion of the debt went down $15 billion and the honest side of the debt, the side that represents borrowing from investors (mostly foreign countries) under wide open contract, actually went up $45 billion. That’s $45 billion in just four days and a more than $11 billion per working day average – an excessive amount of borrowing and a new record even for the Bush administration that until now had been averaging two or three billion a day. It requires explanation. When the government “cashes in” some of the bogus bonds held mostly by entitlements like Social Security and others in the IH side of the debt (surplus money they’ve stolen and pretended to borrow), the money comes from the Treasury’s general fund of taxpayer dollars or money borrowed honestly under contract. The government has no other source of revenue. We know that taxes didn’t go up. In fact, the democrats are still complaining about Bush’s 2001 tax cuts. Forget that option. That leaves borrowing from investors or the third option of robbing Peter to pay Paul by taking funds from budgeted programs in discretionary spending like education, highways, and so forth. This has happened before with everything from the Headstart educational program to medical care for veterans and active duty troops, but it probably didn’t happen this time. It’s just too obvious that this time the extra $15 billion came from new and heavy borrowing from investors. It also means that Bush’s recent trip to our Asian creditors, mostly China and Japan, was a success. Billed or spun as a trip to accomplish other more humanitarian objectives, the real purpose turns out to be to beg or intimidate foreigners into loaning us even more money. It also goes headlong against the old argument that emerging manufacturing giants like China need our overindulgent credit card consumers to buy their products. A nation with a population of almost 1.4 billion, a communist nation with cheap labor that’s already attracted most of our major manufacturers at the expense of American workers, and a nation of workers who somehow manage to save half of their earnings while our people have less than nothing set aside for a rainy day – needs our much smaller population of consumers to buy their products. This is an argument that no longer holds water, especially when they have their own emerging consumers along with India (population 1.2 billion) and other world markets to tap. As far as capitalism goes, the Chinese seem to be in the forefront. They loan us money so we can buy their products. Then they get repaid with interest coming out with profit on both ends. It begs the question of “who” are the better capitalists, the lenders or the borrowers. It’s also becoming more and more difficult for the Treasury to raise money by borrowing. For instance, on December 7th five year bonds were offered at 4.435 percent interest. Of the $31 billion in bonds “tendered,” only $13 billion were “accepted” or sold. These will not be recorded until the fifteenth of the month, but it will then increase everyone’s indebtedness and it merely necessitates more “auctions” or offerings. A great many other implications go much deeper and most Americans are beginning to realize that our ship of state has madmen on the bridge. Are we already both financially and morally bankrupt? But no one is offering viable solutions and “tiz the season to be jolly” so fa-ged-abow-dit if you can. What’s another illusion here or there? Send a message to your elected representatives. Click here to start. Be sure to send a copy to Ed Henry.
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Expulsis Piratis Restituta Probitas A Single Day Of Stealing In Debt Perils Of Social Security Reform Questions In The Age Of Distraction Cult differences In Truth & Financial Responsibility The Real Deficit - Without Crooking The Books The Job Market - Is It Really Getting Better? Going, Going, Gone - The Saga of Financial Responsibility Special Bonds In "Special" Trusts Too Late For Corrective Action Complete Archives for Ed Henry | ||||||||||||||
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