It is insanity to repay debt with more debt, but that is how the U.S. government works.
This is what the mainstream media has been pushing for years. So no one should be surprised at what the Treasury Secretary, Jack Lew, has done. As I wrote last year: “So according to Reuters, economists, and CEOs, The salvation of the economy lies in increased spending and increased debt. This is the insane philosophy that lies behind the current attack on the Tea Party. This is what lies behind the “Anarchist” smear. If you don’t want perpetually increasing spending backed by perpetually mounting debt then you are an anarchist and an enemy of the economy.
“Contemplate this: the editorial staff and reporters at Reuters think this is an intelligent news story for intelligent readers.
“To navigate in our present world you need to understand that people all around you, especially those who think of themselves as sophisticated or educated, have given themselves over to destruction. They really want to simply keep the money/debt flowing and hate anyone who tries to save them from this suicide.”
Now, a year later, we get the insane behavior that the media has been calling for. CNS News reports,
The Daily Treasury Statement that was released Wednesday afternoon as Americans were preparing to celebrate Thanksgiving revealed that the U.S. Treasury has been forced to issue $1,040,965,000,000 in new debt since fiscal 2015 started just eight weeks ago in order to raise the money to pay off Treasury securities that were maturing and to cover new deficit spending by the government.
During those eight weeks, Treasury took in $341,591,000,000 in revenues. That was a record for the period between Oct. 1 and Nov. 25. But that record $341,591,000,000 in revenues was not enough to finance ongoing government spending let alone pay off old debt that matured.
The Treasury also drew down its cash balance by $45.057 billion during the period, starting with $126,568,000,000 in cash and ending with $81,511,000,000.
The only way the Treasury could handle the $942,103,000,000 in old debt that matured during the period plus finance the new deficit spending the government engaged in was to roll over the old debt into new debt and issue enough additional new debt to cover the new deficit spending.
According to our establishment experts, this kind of behavior is wise and moderate. Trying to end the debt cycle threatens the economy.
You know this can’t end well, unless you are stupid.