Treasury Forced to Issue $1T in New Debt in First 6 Weeks of FY14
Between Oct. 1, 2013, the first day of fiscal 2014, and Nov. 14â€”which was less than a month after Congress agreed to temporarily suspend the legal limit on the federal debtâ€”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....
"Lewâ€™s description of the way the government handles its now-$17-trillion-plus debt mirrors the Securities and Exchange Commissionâ€™s definition of a Ponzi scheme.
â€śA Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors,â€ť says the Securities and Exchange Commissionâ€™s definition.
â€śWith little or no legitimate earnings, the schemes require a consistent flow of money from new investors to continue,â€ť said the SEC. â€śPonzi schemes tend to collapse when it becomes difficult to recruit new investors or when a large number of investors ask to cash out.â€ť "