As the government shutdown ended, the Feds immediately set to borrowing to make up for lost time. The result? Over $300 billion in new debt, causing America’s total debt to skyrocket to $17 trillion. Brave new world, eh:
The $328 billion increase shattered the previous high of $238 billion set two years ago.
The giant jump comes because the government was replenishing its stock of “extraordinary measures” — the federal funds it borrowed from over the last five months as it tried to avoid bumping into the debt ceiling.
Under the law, that replenishing happens as soon as there is new debt space.
In this case, the Treasury Department borrowed $400 billion from other funds beginning in May, awaiting a final deal from Congress and Mr. Obama.
Usually Congress sets a borrowing limit, or debt ceiling, that caps the total amount the government can be in the red.
But under the terms of this week’s deal, Congress set a deadline instead of a dollar cap. That means debt will rise by as much as the government spends between now and the Feb. 7 deadline.
Congress wants to keep spending until one of two things happens: everybody resigns themselves to the fact that our government simply won’t do anything to halt it’s boundless greed, or the economy completely implodes and borrowing is no longer an option as foreign governments refuse to loan us anymore money. Congress COULD ask the Federal Reserve to make up the difference, but they’ve been doing something like that non-stop for years now. “Quantitative easing”? In layman’s terms….they’re printing money. Our government has no idea how to fix this problem, but that’s not even the worst of it: they don’t care about fixing it. The best they’re willing to do is keep patching the leaks until they retire, live their remaining years in comfort, and leave the tab for the next generation(s).
Bloody fantastic, don’t you think