Did Treasury purposely force us to hit the debt limit during fiscal cliff debate?
Earlier I spoke about how it seemed kind of odd that throughout the year the Treasury kept telling us that we would make it until Feb before the debt limit was reached. Then magically on Dec 31 we hit the debt ceiling. Turns out we hit it on that date because Timothy Geithner forced us to hit it on that date.
According to CNSNews it turns out that we borrowed $95.953 billion that we didn’t even need. Why because that amount raised our debt from $16.298022 trillion to 16.393975 trillion with the debt limit being at $16.394 trillion.
That the treasury borrowed $95 billion dollars is not surprising, finding out that they did it when the budget for the month of December was balanced is a bit eye opening and makes you wonder why. See even by the Treasuries own reports we took in $270 billion and paid out $270 billion in the month of December. While spending all of our money isn’t the smartest plan out there, at least we only spent what we took in.
But never fear Turbo Tax Timmy is here to save the day for Obama. Why would treasury borrow almost $100 billion dollars they didn’t need? Simple, it turned up the pressure on the House GOP to accept tax increases. And the worst part about it is we fell for it completely. Honestly we have become so used to Government predictions being wrong, especially about money that I’m willing to be that no one thought to go look at Treasuries books and make sure they weren’t being cooked.
Now you find out that the debt limit didn’t need to be hit, hell we actually had cash on hand.
In fact, according to the Daily Treasury Statement, the $92.720 billion in cash Treasury had in its account on the same day it borrowed $95.953 billion and declared the debt limit had been reached was about $10.5 billion more than the $85.446 billion in cash Treasury held at the beginning of fiscal 2013.
Did Treasury need to imminently spend the extra $33.954 billion it added to it cash account New Year’s Eve. No. A week later, at the close of business on Monday, Jan. 7, 2013, according to the Daily Treasury Statement for that day, Treasury still had $63.870 billion cash on hand—having drawn down only $28.85 billon of the extra $33.954 billion it stashed way on debt-limit day.
Look at that. We honestly did not need the money. But we can’t let a small thing like facts get in the way of a good story. I mean, how much more was Obama able to get McConnell to capitulate to on the grounds that the debt limit had just been hit.
As I have said before pass 3 bills in the House right now. Three bills that you know can get complete support in the House and the Senate and actually CUT spending, not reduce future increases, CUTS spending from 2009 levels. If that’s the last year we thought it important to pass a budget then those are the last numbers that were legal. Three Bills: Debt limit increase, Budget, Sequester fixes. Once those are passed through the House you DO NOT vote on anything else. The House goes into recess until the Senate votes on and passes something to send back to the House. Think about the amount of media coverage you could get with the House shut down until the Senate did their job.
Oh and McConnell and the squishy idiots in the Senate, I know what your thinking, No you are not allowed to go make some new compromise crap bill that puts us right back where we are trying to get out of.
Cross posted to The Handbook.