The USSA's "single largest expense in fiscal 2013"...

[eyer]

..."was paying off $7,546,726,000,000 in debt that matured during the year."

And it gets even worse:

Between Oct. 1, 2013, the first day of fiscal 2014, and Nov. 14—which was less than a month after Congress agreed to temporarily suspend the legal limit on the federal debt—the Treasury was forced to issue more than $1 trillion in new debt.

During that time, according to the Daily Treasury Statement, the Treasury issued $1,014,215,000,000 in new bills, notes, bonds and other securities.

The government needed this $1,014,215,000,000 to cover government obligations and expenses that exceeded the $255,080,000,000 it raked in through tax revenues during the same six-week period.

Where did that combined $1,014,215,000,000 in newly borrowed money and $255,080,000,000 in new tax revenues go?

The lion’s share went to payoff maturing securities the Treasury had sold before and had now come due.

In total, according to the Daily Treasury Statement, the Treasury needed to redeem $879,734,000,000 in maturing debt during the first six weeks of the fiscal 2014.

Here's how Treasury Secretary Jacob Lew describes the way the USSA conducts its business:

“Every week we roll over approximately $100 billion in U.S. bills,” Lew testified. “If U.S. bondholders decided that they wanted to be repaid rather than continuing to roll over their investments, we could unexpectedly dissipate our entire cash balance.”

“There is no plan other than raising the debt limit that permits us to meet all of our obligations,” Lew said later in that hearing.

“Let me start by saying what I think should be obvious: that if we don't have enough cash to pay all our bills, we will be failing to meet our obligations, and under any scenario we will be defaulting on obligations,” said Lew.

“Let me remind everyone,” he said, “principal on the debt is not something we pay out of our cash flow of revenues. Principal on the debt is something that is a function of the markets rolling over.”

Here's how the Securities and Exchange Commission defines a Ponzi scheme:

“A Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors,” says the Securities and Exchange Commission’s definition.

“With little or no legitimate earnings, the schemes require a consistent flow of money from new investors to continue,” said 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.”

What a mess it's going to be when this humongous bubble inflating the stock market bursts...

http://cnsnews.com/news/article/ter...y-forced-issue-1t-new-debt-first-6-weeks-fy14

 

[KingOrfeo]

The USSA's . . .

You don't know how lucky you are, boys!

 

[BotanyBoy]

Get it while the getting is good!! =D

 

[lilsarah91]

What a mess it's going to be when this humongous bubble inflating the stock market bursts...

Yep, just like what happened under Gee-Dubaya when the stock market bubble was artificially inflated and then crashed, it put us into a recession.

 

[Bronc31]

Yep, just like what happened under Gee-Dubaya when the stock market bubble was artificially inflated and then crashed, it put us into a recession.

Well this certainly makes me feel better.