Terry Jeffrey

That means the federal government's expenditures of a little more than $11 trillion in fiscal 2010 -- not counting tax refunds -- were about seven times the federal government's net tax receipts of $1.5697 trillion.

Where did the Treasury get the additional money it needed? It borrowed even more than the $7,207 trillion in loans it paid off.

In fact, according to the Treasury, the government took out $8.6492 trillion($8,649,171,000,000.00) in new loans in fiscal 2010, by selling new Treasury securities in that amount.

Now, if you think that is the end of this horror story, you are wrong. It is only the beginning.

Just as important as the dollar amount of these loans are the dates on which they will come due.

Of the 7.207 trillion in loans the government paid off in fiscal 2010, $6.220 trillion were short-term Treasury bills that had matured in one year or less. Another $795 billion were Treasury notes that had carried terms ranging from two years to 10 years.

Of the $8.6 trillion in new loans the government took out in fiscal 2010, about $6 trillion were in Treasury bills that will come due in fiscal 2011 -- that is, before September 30 of this year -- and another $2.2 trillion were in Treasury notes that will come due in the next two to 10 years.

Our federal government is an exhausted man desperately treading water in a deep sea of debt.

Erskine Bowles, a Democrat who served as chief of staff to President Bill Clinton and as co-chair of President Barack Obama's National Commission Fiscal Responsibility, stated the plain truth to the Senate Budget Committee last month.

"I think we face the most predictable economic crisis in history," he said.

"It may be two years, you know, maybe a little less, maybe a little more," said Bowles. "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."

Maybe then they will shut down our government whether we like it or not.


Terry Jeffrey

Terence P. Jeffrey is the editor-in-chief of CNSNews

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