Ever have a friend or family member who is constantly in debt and whose idea of fiscal responsibility is to get an increase in their credit card limit in order to pay off their debts? Well, we all have such a relative... our Uncle Sam.
Since October 1, the beginning of the new Fiscal Year, the Treasury Department has issued $1,040,965,000,000 in new debt just to pay off maturating Treasury Securities and ensure the federal government was able to issue new debt. That's right, the federal government is issuing new debt to pay off old debt!
One reason for this is the federal government is putting most of its debt in short term debt instruments, which enables the government to save on interest payments but requires the Treasury to roll over the debt in a shorter period of time.
During this same period, the federal government took in a record amount of tax revenue, so clearly the problem is not that the government taxes too much. This is why Campaign for Liberty is continuing to work for Real Cuts, Right Now.
(Hat Tip, Terry Jeffery at Conservative News Service. Terry's article on this is a must-read.)
Tags: Real Cuts Right Now, debt