I know the leftists among us want to pretend that all we have to do is tax the rich and all our problems will be solved..

Guess what? You are full of ......


March Madness: U.S. Gov't Spent More Than Eight Times Its Monthly Revenue

The U.S. Treasury has released a final statement for the month of March that demonstrates that financial madness has gripped the federal government.

During the month, according to the Treasury, the federal government grossed $194 billion in tax revenue and paid out $65.898 billion in tax refunds (including $62.011 to individuals and $3.887 to businesses) thus netting $128.179 billion in tax revenue for March.

At the same time, the Treasury paid out a total of $1.1187 trillion. When the $65.898 billion in tax refunds is deducted from that, the Treasury paid a net of $1.0528 trillion in federal expenses for March.

That $1.0528 trillion in spending for March equaled 8.2 times the $128.179 in net federal tax revenue for the month.

The lion’s share of this federal spending went to redeem Treasury securities that had matured during the month—most of which were short-term Treasury bills that have terms of one year or less.

In fact, during March the Treasury redeemed $705.3 billion in Treasury securities of which $623.9 billion were short-term bills with a term of one year or less.

After the disbursements made to pay off the $705.3 billion in loans that came due in March, three of the other top four federal spending items for the month were entitlements programs. The other top item was payments to defense contractors.

The Treasury paid $49.8 billion in Social Security benefits in March, $47.4 billion in Medicare benefits, and $22.575 billion in Medicaid benefits. It also paid $37.9 billion to defense contractors.

To help pay off its $1.0528 trillion in monthly bills on only $128.179 in monthly tax revenue, the Treasury turned primarily to new borrowing. During the month, according to the Treasury statement, the government sold $786.5 billion in new securities. It also drew down its cash balance from $190.6 billion at the beginning of the month to $118.1 billion at the end of the month. It also reaped $18 billion from the sale of assets in the Troubled Asset Relief Program.

The federal government’s cash-flow situation was summed up pungently in Senate Budget Committee testimony by Erskine Bowles, who served as chief of staff to President Bill Clinton and is now the co-chair of President Barack Obama’s National Commission on Fiscal Responsibility.

http://cnsnews.com/news/article/march-madness-feds-spent-more-eight-time

“I'm really concerned,” Bowles told the committee last month. “I think we face the most predictable economic crisis in history. A lot of us sitting in this room didn't see this last crisis as it came upon us. But this one is really easy to see. The fiscal path we are on today is simply not sustainable.

“This debt and these deficits that we are incurring on an annual basis are like a cancer and they are truly going to destroy this country from within unless we have the common sense to do something about it,” said Bowles.

“I used to say that I got into this thing for my grandchildren,” Bowles said. “I have eight grandchildren under five years old. I'll have one more in a week. And my life is wonderful and it is wild. But this problem is going to happen long before my grandchildren grow up.

“This problem is going to happen, like the former chairman of the Fed said, or the Moody's said, this is a problem we're going to have to face up,” he said. “It may be two years, you know, maybe a little less, maybe a little more. But if our bankers over there in Asia begin to believe that we're not going to be solid on our debt, that we're not going to be able to meet our obligations, just stop and think for a minute what happens if they just stop buying our debt.

“What happens to interest rates?” asked Bowles. “And what happens to the U.S. economy? The markets will absolutely devastate us if we don't step up to this problem. The problem is real, the solutions are painful, and we have to act.”

http://cnsnews.com/news/article/march-madness-feds-spent-more-eight-time

hard to blame this on bush, huh...

BUSH DID IT!

the bastard!...he's busy helping muslim women now...

Of all the nerve! First he helps us then he helps them!? Where does it all end!!?? WHEN DOES THE HURTING STOP!!?

hard to 'blame' it on any one person,,,its been going on for years, the debt build up has maintained an increase of about half trill per years since 2000, and 1 trill in 2007, 2 tril in 2008, and 1.5 tril in 2009


same with the deficit, which was 'in the black' to the tune of 236 billion when clinton left office but by 2004 had nearly doubled to 413 billion and at the end of 2008(when bush signed the 700 billion bank bailout package) grew to 438 billion

then in 2009. Obama enacted the economic recovery plan for 787 billion, somehow bringing us to 1.4 trillion in debt

( I say somehow , because the math seems shady to me, but this is whats reported as true. Bush signed a 700 billion package which reportedly only raised the deficit another 25 bill but OBama signed a 787 billion package which reportedly raised the deficit the full 787 billion)


but my point is, the spending and debt/deficit issues begun long before most had even HEARD the name Obama

keep in mind also, the fiscal year runs from october through september, so when a president 'leaves office' we are still mostly under THEIR budget until the first october of the next presidents first term

just so you know, it is 2011 right now...when did bush leave office?

The debt issues have been around since before President Obama. (true).

However he is sure not going to make that name reverbrate through history if he continues the debt cycle...

America, to remain America, Land of the Free.

Needs to get real.

Not even a Nation can spend more than it earns... and survive as a Nation.

No word from the leftys...Does that mean you win this argument

I believe msharmony is a lefty. I think she's doing just fine.

She IS doing just fine.

But not a 'lefty' or a 'righty'.

More balanced than most on this forum.

Pleasure to read her posts.

Some I agree with, some I don't...

Anyone know where the funds come from to pay that trillion dollar expense?

Question: who do you think would be buying saving bonds, treasury bonds or other U.S. securities to the tune of a trillion dollars, when the profit is not worth the cost of the tax on that profit?

I'm not a economist so I haven't a clue - only a few hunches. What about you guys - hunches? Answers?

And if the little guy who thinks that buying any security below $10,000 is a sign of National support has to pay taxes on the interest income - why do the buyers who exceed a million dollars not only get to claim the EXPENSE of their investing but rarely ever pay a dime of tax on the interest income (due to all kinds of various laws and loopholes that only serve to keep money in the hands of the very wealthy).???

i believe invicus said the money was borrowed in his post...

To help pay off its $1.0528 trillion in monthly bills on only $128.179 in monthly tax revenue, the Treasury turned primarily to new borrowing. During the month, according to the Treasury statement, the government sold $786.5 billion in new securities. It also drew down its cash balance from $190.6 billion at the beginning of the month to $118.1 billion at the end of the month. It also reaped $18 billion from the sale of assets in the Troubled Asset Relief Program.

Thanks, I understand that but who is buying the $786.5 in Federal securities and who will continue to buy that amount every time an interest payment comes due?

I don't even know if security is titled (as in, was it sold to a particular owner?) It's clear that it can be traded quite easily, which gives me the sense that the transactions are fairly anonymous.

Just curious wondering is anyone else is or if they have a logical answer. Thanks

A lot of the trading may be going on in the index funds. They are at a 3 month low right now. This is getting into a realm where my poor little brain is in the weeds.

Yea I know. I looked it up and the interest is totally upside down. Thirty years will get ya just over 4%. Of course I understand that it's basically speculation and NO ONE intends to keep a couple million dollars worth of that stuff (I don't imagine.) So I looked up the benefits of the uber wealthy idividual to trade in such a long-term and potentially volatile investment. I kept finding one tax write off after another BUT I can't say I'm reading it all correctly as it's totally out of my league.

So for some this investment may simply be a loss lead for a major porfolio.

But my big question is - are the Major Corporate players backing these securities. After all they could easily pay the debt of our nation but they would lose their power. Perhaps it's wiser to trade the risky commodity and bury the loss in a corporate portfolio.

Just another form of coalition between those who are 'perceived' to lead, and those who actually have the power?

Where's heavelyboy, isn't he the one who claims to have such a great interest in this economy stuff???

i'm sorry...I thought this post was about why obama is spending over 8 times more than what the government makes in one month? i noticed all you libs skipped over that part

Isn't there suppose to be a budget? Isn't he suppose to be within that budget?

Explain why that part isn't working and then there might be more discussion about Obama.