Accounting Miracle: August Deficit Up $146 B. National Debt Up Zero.

[madfranks]

http://teapartyeconomist.com/2013/09/10/accounting-miracle-august-deficit-146-b-national-debt-zero/

It’s all fake. Congress knows it’s fake. The media know it’s fake. It is now a source of great amusement. It’s called “putting the shuck on the rubes.” The voters don’t care or understand.

As for the law: Who cares?

The federal deficit increased by $146 billion in August, according to a report released today by the Congressional Budget Office. But, at the same time, according to the U.S. Treasury, the federal debt did not increase at all during the month.

Total federal receipts were $185 billion during August, according to the CBO, while total federal outlays were $331 billion. Thus, the Treasury was forced to engage in $146 billion in deficit spending.

Despite this deficit spending, the Treasury reported that at the close of every single business day in August, the federal debt subject to a legal limit by Congress remained exactly $16,699,396,000,000.

That is approximately just $25 million below the legal limit on the debt that is $16,699,421,095,673.60

If the federal debt had climbed by the same $146 billion that the deficit climbed in August, it would have exceeded the legal limit by almost $146 billion.

In fact, according to the Daily Treasury Statements that the Treasury publishes at 4:00 p.m. on each business day, the debt subject to the legal limit has remained at exactly $16,699,396,000,000–or about $25 million below the legal limit–every day since May 17.

With the release of the Daily Treasury Statement for Sept. 6 (which occurred at 4:00 p.m on Sept. 9), that makes 112 days that, according to the U.S. Treasury, the debt has been stuck at $16,699,396,000,000.

The CBO reported today said that in addition to a $146 billion deficit in August, the Treasury also ran a $98 billion deficit in July, and that in the first eleven months of fiscal 2013 (October through August) the federal government has run a cumulative $753 billion deficit.

Back on May 17–when the Treasury said the debt first hit $16,699,396,000,000–Treasury Secretary Jack Lew sent House Speaker John Boehner a letter indicating that the Treasury would begin using “extraordinary measures” to allow the government to continue borrowing money without exceeding the legal limit of $16,699,421,095,673.60.

[Son-of-Liberty]

So what happens when they finally raise the debt limit? Does the national debt immediately soar? Or do they just never put back the money they are likely taking out of the pension fund?

I think at some point they are going to come after 401k money and that is probably what all the homeland security, and militarized police are for. A lot of people are going to be pissed when there 401K money gets nationalized for their own security.

[jimswift]

They have to rob you blind, to save you.

[palani]

It has been reported that Treasury promised 'extraordinary measures' that would run out in October. Probably has something to do with pilfering retirement benefits.

[Sparky]

So what happens when they finally raise the debt limit? Does the national debt immediately soar? Or do they just never put back the money they are likely taking out of the pension fund?

I think at some point they are going to come after 401k money and that is probably what all the homeland security, and militarized police are for. A lot of people are going to be pissed when there 401K money gets nationalized for their own security.

The national debt will simply go up by a huge amount in one day during October, when they pay back the federal workers pension plan which they've been neglecting in order to not borrow more money.

Understand how they will "go after" your 401K. They won't take it away. Their will get at it this way:
1) They will make is so the default 401K contribution goes to U.S. Treasuries
2) They will offer 401K's to be converted to "annuities", which is what social security is. They will offer to pay you a fixed amount the rest of your life (with cost of living adjustments) in exchange for them taking over your current balance.

[General of Darkness]

I took a snap shot of the debt clock on the 6th, funny thing is that the individual debt is lower now, WTF?

[palani]

funny thing is that the individual debt is lower now, WTF?

Debt stays the same. More children available to be taxed. => individual debt goes lower

[Son-of-Liberty]

The national debt will simply go up by a huge amount in one day during October, when they pay back the federal workers pension plan which they've been neglecting in order to not borrow more money.

Understand how they will "go after" your 401K. They won't take it away. Their will get at it this way:
1) They will make is so the default 401K contribution goes to U.S. Treasuries
2) They will offer 401K's to be converted to "annuities", which is what social security is. They will offer to pay you a fixed amount the rest of your life (with cost of living adjustments) in exchange for them taking over your current balance.
Of course they are going to do it in a weaselly way. First it will be optional then when that gets tapped out they will make it mandatory. They won't be satisfied until they have killed the host.