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. 14âwhich was less than a month after Congress agreed to temporarily suspend the legal limit on the federal debtâthe 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....
"Lewâs description of the way the government handles its now-$17-trillion-plus debt mirrors the Securities and Exchange Commissionâs definition of a Ponzi scheme.
âA Ponzi scheme is an investment fraud that involves the payment of purported returns to existing investors from funds contributed by new investors,â says the Securities and Exchange Commissionâs definition.
âWith little or no legitimate earnings, the schemes require a consistent flow of money from new investors to continue,â said the SEC. âPonzi schemes tend to collapse when it becomes difficult to recruit new investors or when a large number of investors ask to cash out.â "