To: Goose94 who wrote (4110 ) 1/12/2014 3:52:22 PM From: Goose94 Read Replies (1) | Respond to Obama's Debt Buildup Risks A Major Fiscal Catastrophe - http://news.investors.com/ibd-editorials/111913-679856-us-issues-1-trillionin-new-debt-in-just-6-weeks.htm Fiscal Fraud: The government issued an astounding $1 trillion in new debt during the first six weeks of the fiscal year. How could such a thing happen with nary a peep? Just like ObamaCare, it's more government deceit.Maybe you didn't notice, because it barely warranted reporting by anyone other than the plucky CNSNews.com. But the government has quietly raised $1 trillion in new debt since the end of September. As we've noted, it was all part of the charade of last summer's debt-ceiling negotiations between the Obama administration and Republicans in the House. A handful of reporters noted at the time how strange it was that the government kept running budget deficits, yet the official public debt count remained stubbornly stuck at $16.738 trillion for months on end. How could that be? The debt ceiling was officially $16.699 trillion, so the government was already breaking the law. But the Obama administration didn't want to make things worse, so it pretended the debt wasn't rising by paying most of its bills out of incoming taxes, then rolling over the debts it owed for another day. By doing this, it bought time to bash the GOP politically in debt talks. And we, the people, were gamed, big time. By any legitimate accounting standard, the government's indebtedness continued to grow all summer, even though the reported debt didn't. But after the brief shutdown, a debt deal was struck. The result? From Oct. 1 through Nov. 15, total public debt jumped from $16.738 trillion to $17.190 trillion. That means, net of retired debt, you, the public taxpayer, have been saddled with nearly half a trillion dollars more debt in just 45 days. How could this happen? As Treasury Secretary Jack Lew helpfully explained to the Senate on Oct. 10, "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." Unfortunately, as CNSNews notes, what the government did meets its own definition of 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," the Securities & Exchange Commission says. "With little or no legitimate earnings, the schemes require a consistent flow of money from new investors to continue." The endgame, the SEC says, is "collapse." And if we don't rein in our surging debt, that's a real possibility. Yes, we know. No court has found this practice illegal. But as with the lies behind ObamaCare, this fiscal recklessness without end seriously endangers our economy. It's little known by the public that under the recent deal, the debt ceiling has been suspended through Feb. 7, 2014. Until then, Obama can add as much as he wants — which explains the sudden explosion in public debt. One recent estimate said U.S. debt is on pace to hit $22 trillion just three months from now — a surge of $5 trillion, or 30%, in barely five months. That's scary. Such fiscal legerdemain would land a private investor or manager in prison. Under Obama, it's how business is done. This could well be our next crisis.
