The US government is now just four days into the new fiscal year, and in the last three days alone, the Treasury has borrowed $162 Billion dollars to keep the government running. This new borrowing continues to increase the ongoing debt crisis in Washington, and has brought the Debt to GDP ratio to an astounding 98.9%.
Little to say here: total debt is now at, obviously, a new record high of $14,856,859,498,405.73, which is a $20 billion increase overnight, $67 billion in the past two days, and $162 billion in the last three days. We will repeat the last part: total US debt has increased by $162 billion in three days. Said otherwise, total US Debt/GDP is now 98.9%. Please carry on. – Zerohedge
What needs to be recognized here, is that the drama of this summer’s debt ceiling showdown between Congress and the White House accomplished little more than political theatrics to keep the status quo. Since the agreement to raise the debt ceiling by $2.4 Trillion dollars into 2013 was passed, no cuts by the Super Congress have been brought before either floor for a vote, and the government has spent several hundred billion in newly borrowed money.
Ironically however, instead of passing legislation to cut federal spending and programs as promised under the debt celing compromise, the debate over the past month has turned instead on new ways to institute taxes on the rich, and those earning a set amount of money. In two different instances, President Obama proposed a new tax on millionaires, and one on energy companies as a way to pay for his new make-work jobs bill. The individual tax, known as the ‘Buffett tax’, since it was suggested by billionaire Warren Buffet, would place a structured tax on those making more than $1 million per year in earnings. The second tax he proposes on energy companies, would in reality be a tax on all Americans as the coporations would simply increase prices to have consumers pay for their loss of profits.
The US government is like an addict, only their addiction is with spending money. To this point since the August compromise, there is little evidence to show that Congress, or the President, is sincere in achieving any real cuts to federal spendng. In fact, today’s report that shows the government borrowed $162 Billion in new debt in just the last three days, proves how much the country is still embroiled in a debt crisis, and the junkie has access to relatively unlimited borrowing.