Government Spending Spree in March

 

Shared from a friend, Dean Stephens

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

Monday, April 04, 2011
By Terence P. Jeffrey
Erskine BowlesErskine Bowles, co-chairman of the National Commission on Fiscal Responsbility with his co-chair former Sen. Alan Simpson (R.-Wyo.) (AP photo/Alex Brandon)

 

(CNSNews.com) – 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. (See video below.)

“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.”

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  • Bob Quintano 2 minutes ago

    Democrats are political dinosaurs, RINO’s are as well, They all need to be marched down to the LaBrea Tar Pits and be made to join their ancestors. Spend, spend, spend. Geithner, Obama, Reid, etc. GET RID of that trash.

    ReplyReply

  • Forget political parties… no matter how we slice it, this is the result of government nonfeasance at best (malfeasance at worst).

    They ALL let us down.

1 person liked this. ReplyReply

Kleo 6 minutes ago
  • There is a good chance this will lead to the Confederates finally winning, leading to dissolution of the US. We have to remember that the USSR fell apart because of the its failure to be financially sound. I see history repeating in the US case.

    ReplyReply

  • Will in FL 7 minutes ago
  • Do not the educated caring people here realize that almost all the so-called debt is a fraud? When the Fed creates money it is instantly a “debt” for the US Government. Like the thre foreign banks and businesses the Fed just admitted to secretly giving three and a half trillion dollars to 2 years ago. Or the other billions of dollars that the Fed gives annually to the world bank/Internatinal monitary fund, much of which they pass on to terrorists and dictators. We can easily change this fradulant system just as fast a we created it (partly under FDR and partly under Nixon).
    The president and congress can strip the Fed of all financial power, educate the people of America and the World on how Natioinal Central Banks have stolen the wealth of the people of the world by simply “creating” money with a few key stroke on a computer and thus creating debt that is impossible to repay and so financially enslave the peope and nations. Then declare that since this whole thing is a world wide fraud there is no real debt to repay. Ditto the debt of the EU and other countries around the world. It is a fundamental tenant of US and international law that “once Fraud enters into any agreement it visciates even the most solemn promise to pay.” (Quote from supreme court decision)
    Of course then we would have to return to an honest money system and all the people making money off the present system would need to get real jobs.

    2 people liked this. ReplyReply

  • RALOREE 17 minutes ago

  • Erskine Bowles states as follows: “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.”

    Hearing that and watching the Democrats and some ill meaning RHINOS that joined the Democrats along with the POTUS oppose budget cuts that will begin to rescue America from this spiral into oblivian, is akin to watching a bunch of idiots putting a gun to their heads and pulling the trigger. HOW IS IT THAT THEY DO NOT SEE THE TRAIN WRECK THAT THEY ARE INTENTIONALLY ENGINEERING!! THE ANSWER IS THAT THEY ARE STUPID OR EVIL OR BOTH!!!

  • 5 people liked this. ReplyReply

    markit8dude 8 minutes ago in reply to RALOREE

  • My sentiment exactly.

    TRUE CUTS would be in the 3/4-1 trillion arena.

    The taxpayer stolen money given to ‘the green industry’, ‘non-profits (what an oxymoron..)’, ‘union only can bid on jobs’ ad infinitum is a HUGE reason as to why Socialism IS a failed experiment EVERYTIME it’s implemented,

    Socialism can’t exist without Capitalism. Capitalism has PROVEN to survive without Capitalism.

    -Independent who didn’t drink the kool-aid.

  • 1 person liked this. ReplyReply

    markit8dude 18 minutes ago

  • That’s the problems with ALL these t urds in the swamp, they think ‘short term fix’, which in essence is ‘kick the can down the road’.

    I’m sure most found it ridiculous the kabuki theater in ’09 when the Government nitwits, who’d put the American people in TRILLIONS of dollars in debt through the years, sanctimoniously grilling the banks and their CEO’s of taking billions of dollars of the very same cash the government STOLE from the American people and GAVE TO THE BANKS in the first place!!

    It costs ~$35-40 billion PER DAY for the country to function. The ‘cuts’ the ‘D’s and ‘R’s propose are both accomplishing NOTHING.

    Get rid of welfare for the multi-generational wastes of space plaguing the urban areas and make them and their children from multiple partners work!

    ‘Encourage’ or FORCE people 40 and younger to start a 401k and/or Roth retirement plan.

    86 Obamacare for ‘paying’ for the right to live is as draconian as it gets. there’s infinitely more to do but this may help matters more so than the 535 idiots who are out to destroy my country..

    -Independent who didn’t drink the kool-aid.

  • 2 people liked this. ReplyReply

    katok 22 minutes ago
  • Cut Millionaire taxes and eliminate the estate tax, that’s one way to skin a cat!

    1 person liked this. ReplyReply

  • weew 11 minutes ago in reply to katok
  • If you took 100% of everything from the “rich”, it wouldn’t pay a fraction of this debt. It might make YOU feel good to see it happen, but that’s about it.

    1 person liked this. ReplyReply

  • Cope4reo 23 minutes ago
  • Scary.
    Where is the news media on this. Republicans are right. Cut, Cut, Cut

    1 person liked this. ReplyReply

  • VeryProudofAmerica 29 minutes ago

  • So we all see the problem. No one thinks this is sustainable. No one sees a way out.

    Why is the president not doing something about this? Why are we not demanding that he does?

    The media and the liberals have managed to place the Republican party in the role of mature parent. The liberals get to be the bad kids who have all the fun, and conservatives have to be the voice of reason that enforces the rules. In the end the budget may get fixed, but it will always be the republicans that cut the benefits, the republicans that raised taxes on the middle class, the republicans that destroyed this or that popular program. The liberals know that if in the end the budget crisis is overcome, Republicans will be villianized as heartless people. If it doesn’t get oevrcome, Republicans will be villianized as not having fullfilled their role as parent.

    We need to demand Democrats grow up and present real ideas on how to close the budget gap. Why every nite show host is not making fun of Obama the ostrich with his head in the sand hoping the budget problem will go away is beyond me.

    We need a president – not an ostrich. Pull your head out Obama and help solve this budget crisis!

  • 8 people liked this. ReplyReply

    Brennan D 15 minutes ago in reply to VeryProudofAmerica
  • everyone knows that republicans are the party of ideas that hates government and therefore cannot govern and the democrats hate ideas and therefore never have a good one but love to control other people’s behavior.

    1 person liked this. ReplyReply

  • Jules 59 3 minutes ago in reply to Brennan D
  • Where do you even get your limited education? Republicans want SMALLER government, less spending.

    ReplyReply

  • Mskjon 30 minutes ago
  • The ultimate problem with our system and many past civilizations is a concept called “the tragedy of the commons”. Since economists have existed they’ve known of this phenomena.
    The commons were free use grazing areas in town centers. Things would be great if the area could sustain 50 sheep owned by 5 ranchers and things stayed that way. But a rancher who adds 1 sheep gets full benefit of the grazing at no cost to him. But the pasture is degraded for all. As each rancher adds sheep, actiing in his own best interest the pasture is destroyed.
    Self interest is the ultimate problem at the expense of all.
    Whether it’s property taxes, income taxes etc. It all translates to today’s issues. Politics is local, finances are personal and our votes continually add more sheep to our overgrazed pasture. Ultimately and sadly it is democratic voting, at any level of gov., that allows us to act in our self interest and destroy ourselves.

    VeryProudofAmerica and 1 more liked this ReplyReply

  • VeryProudofAmerica 9 minutes ago in reply to Mskjon
  • Very well said.

    ReplyReply

  • Bluffbarron 45 minutes ago

  • So they spend and the productive people pay the consequences? I don’t think so. Let the bankers (i.e. Federal Reserve) go to H-ll!
  • 4 people liked this. ReplyReply

    sirgareth 24 minutes ago in reply to Bluffbarron

  • But you have identified the primary reason what government exists. To take from those who make in order to give it to the takers.

    Government is uniquely qualified to do this because they are armed.

  • 2 people liked this. ReplyReply

    cowboy 50 minutes ago
  • Afazier you talk about entitlement programs ….where is it in the constitution that entitlement programs are a part of our God given right .it is those in Washington that started these programs ……please explain to me why i have to pay the way for people i do not know and never will ……i do not mind helping those who can not help them self but at what point do we say …..we have got to stop ……….our Government will never look at this and say maybe we are taking care of to many they will never see the waste and abuse ……that is what gets them elected …….have you ever thought about all the charities in this world that do one hell of a better job with the money they collect …….Washington has to hire how many people to spend one damn dollar of tax payer money who are they really helping !!!!!!!!!!!!!

    8 people liked this. ReplyReply

  • Sparky_Wan_Kenobi 53 minutes ago
  • The problem WILL be corrected. The question is only whether it will be a managed correction or federal bankruptcy. The former is a chancy proposition at best given the “leadership” we now have; the latter will defintely cause a global financial meltdown.

    2 people liked this. ReplyReply

  • Arche 1 hour ago

  • No one would ever let me spend more than I earn ever not the bank not Walmart no one. What would happen if I went to Walmart filled two or three carts full of groceries. rang it through the register and it came out to $1,200 then I pay them $300 and walk out the door with all the groceries. As soon as I hit the door I would be arrested for grand theft seeing the total value exceeded $1,000.

    This is like a Homeless street person going and buying a limo with no cash to drive around and pickup aluminum cans. Who in their right mind would give the street person the limo if he doesn’t have any cash? No one. But lets say the car company let him do it then what will happen? do you think he has any intention is paying for the Limo? Of course not but this is exactly what the Govt is doing So how is it the Govt can do this? They don’t have any intention of paying the debt they created. Some one is allowing this to collapse the system so that a fundamental transformation can take place.

    This is crazy you could make this stuff up.

  • Rsmry and 7 more liked this ReplyReply

    Styx717 1 hour ago
  • Can obami and his lap dogs be THIS incompetent, or is all this intentional? Seems like the Cloward/Pliven strategy being put into practice. Those two want to see the downfall of capitalism and the US, and of course, obami sees himself as a “citizen of the world”. So what’s REALLY happening? Is this intentional or can they actuall be this fracking dumb?

    4 people liked this. ReplyReply

  • Jules 59 0 minutes ago in reply to Styx717
  • The socialists have been working on this for over a hundred years, building their base and their “infrastructure”. Obama moved a little too fast and the rest of us saw what was happening, but they have the Union structure and all the useful idiots working for the Unions. Most of those people still do not realize what is happening and are focusing on their own selfish wants, rather than looking around and seeing how they are destroying our Country.

    ReplyReply

  • guest 8 minutes ago in reply to Styx717
  • Read the book Road to Serfdom by F.A. Hayek. This progressive bs has been going on for a long time. I’m really starting to believe it’s intentional.

    1 person liked this. ReplyReply

  • Weelleemon 1 hour ago

  • The major problem with our American system of government has always been what is also one of its greatest strengths. The system of checks and balances was instituted to ensure that one side or another should never gain too much power and be able to drastically alter the course of the nation over a short period of time to suit their political beliefs. The problem with this, of course, manifests now 234 years down the road, when the nation’s drifting slowly off course for the past many decades has resulted in an exponentially worsening situation that requires a drastic altering of the course of the nation over a short period of time.

    Whoops.

    The American government as we have known it doesn’t work, and will fail. This isn’t so hard to understand: It has happened time and time again to the great civilizations throughout history. It’s our turn. The only thing that we should be trying to ensure at this point is that the transition to come is bloodless, and that what replaces our Constitutional Republic is something worth having. We are in dire, dire danger of slipping into either anarchy or totalitarianism. And yes, it CAN happen here.

  • Rsmry and 7 more liked this ReplyReply

    Buckbuck618 1 hour ago
  • amen brother!

    ReplyReply

  • Oildad 1 hour ago
  • National Commission on Fiscal Responsbility< Should be Irresponsibility. I understand that there are +/- 50% of the population of the US receives a check of some kind from the federal government. If thats true, the people receiving those checks are merely voting themselves a raise on election day………or in othere words, we’re screwed……..

    5 people liked this. ReplyReply

  • Ohanake 1 hour ago
  • Pllllllleeeeaaaase raise interest rates…. I’ve been waiting for over a year and a half now.

    ReplyReply

  • Thomas Avallone 1 hour ago
  • The Tea Party needs to fire Boehner and “Deem” the $100 billion cuts “Passed” like Pelosi did. Forget Obama and Reid, they’re irrelevant anyway

    Rsmry and 6 more liked this ReplyReply

  • Welcome Black Carter 1 hour ago
  • The problem is this is part of the progressive plan. Seems to be going well for them…

    Rsmry and 4 more liked this ReplyReply

  • Oildad 1 hour ago
  • National Commission on Fiscal Responsbility <there’s a=”” be=”” for=”” irresposibility……..=”” should=”” title=”” ya,=””></there’s>

    Rsmry liked this ReplyReply

  • Afrazier 1 hour ago

  • I am of the opinion that this problem can’t be fixed. Not because solutions don’t exist, but because those in power who need to make the decision to implement a solution aren’t going to do so.

    What we’re looking at, in a manner of speaking, is no different than a low to middle class individual with more bills than income, using credit cards to buy food, and suddenly finding themselves with rising utility expenses, food expenses, gasoline expenses, etc. That is where our government is at. They have more things to pay for than they have revenue coming in to cover it, so they are forced to do things on credit in order to maintain the standard of life we have come to enjoy in the United States.

    I do not doubt or deny that our government is behaving with gross irresponsibility. However, I do also see that there is some small amount of necessity that is driving some of it. I see the logic, for example, in cutting entitlement programs. There are, and will always be, people who abuse the system. But I don’t see the humanity in putting someone who is 85 years old on the street after they paid into SS all their lives, or cutting benefits for someone who lost their legs fighting a war he didn’t volunteer to go fight. I don’t see the fulfillment of our righteous duty as human beings in starving children whose only crime of irresponsibility is having lazy parents.

    So what can they really do about entitlement programs? If they leave them, one side complains. If they cut them, the other side complains. The programs in and of themselves are good things. They are intended to help people in crisis, so that you don’t lose your house if you are unexpectedly laid off and don’t have a paycheck for six weeks while you find another job and start getting paid again. But what they’ve become instead is a crutch for people who don’t want to find a job. If you take away Unemployment, you take away hope for those who don’t abuse the system. If you leave it, you enable those who do abuse it. If you take away SS, you condemn the 95% of stupid Americans who aren’t wise enough to plan for their own retirement. But if you leave it in its present form, you enable people who collect disability benefits for garbage like depression.

    Maybe they should make an Entertainer’s Tax. Something outrageous like 90% of income earned through entertainment. Actors make me even more sick than the government. As recently as 1990, you could live comfortably off of your interest if you carefully invested half a million dollars. Some of these actors get that much per episode, and then have the nerve to complain, while at the same time, our butchers get $10 per hour, our carpenters get $20, our mechanics get $15, etc. The people who actually matter to the prosperity of the country get paid nothing and get taxed to the eyeballs, while the undeserving earn ridiculous amounts and find ways to avoid the taxes altogether, all the while complaining about wanting more.

    Our country has no sense of itself. It’s people are stupid as a general rule. The government is full of idiots, voted in by morons . . . and when we are on the verge of needing to borrow some of Germany’s wheelbarrows to buy bread (because our dollar is getting so worthless that we wouldn’t be able to afford to buy them), they’re still spending a trillion dollars a month.

    You can’t fix it. It’s completely broken.

  • sbenard and 12 more liked this ReplyReply

    Gracie 1 hour ago in reply to Afrazier
  • Why do you talk in the same paragraph about “entitlement reform”, “starving children”, “lost their legs” and “85 years old on the street”? It’s no wonder the discussion becomes incoherent when this is how people think about entitlement reform.

    2 people liked this. ReplyReply

  • George Colgrove 1 hour ago in reply to Afrazier

  • I do not think we need to go after people for taxes – that is evil. We need to screw our heads on – get the federal workforce out of the way and get the private sector going to solve these problems. It was the arogants of government that got us here and it will be the people to get us out.

    It is not too late. We are at the brink but we can stop this if congress acts now!

    THE FEDS FAILED at their 70 year long FDR experiment. It is time we get Social security out to the private sector to help that 85 year old. The only things feds will do is do what is neccdessary to protect their very high compensation. Have you been noticing what has been going on in Wisconsin lately?

    The federal workforce can fix this now. They can adjust their budgets down, fire people and start reducing their processes and simplifying procedures. BUT THEY ARE NOT!

    We need to take the helm and fix this our selves. We need more peopel in congress to go after the budgets, cut programs consolidate agencies and programs and even cut departments al together.

  • 3 people liked this. ReplyReply

    bruce 1 hour ago

  • It is time to stop calling this budget tsunami a government spending problem.It is a Democrat spending problem. The distillate of Democrat dopes, left in Congress after their historic defeat are incapable of understanding this problem and dont have the combined brain power to do anything about it. We cannot leave our future in the hands of these mentally challenged individuals.

    Dem Dopes worship at the alter of the NY Times which has stated over and over again there is no deficit problem, and that the earth is flat. Why is any attention paid to these proven Congressional morons, because the media morons with them agree.

    What’s left of the left is the left of the left and that represents at best 10% of the voters, so marginalize them with ridicule and ignore them when they speak.

  • Ohanake and 6 more liked this ReplyReply

    Quick4cyl 29 minutes ago in reply to bruce
  • It’s every bit republican caused as democrat. Grow up and get over the little D/R and maybe we can work to get the problems fixed

    ReplyReply

  • ChicagoBob123 16 minutes ago in reply to Quick4cyl
  • I used to agree with you until last years free for all 720 billion cash out and spending spree. Have you noticed how large the government has become? Read “We have become a nation of takers” where they point out how large the government has become. Sad.. And look who defended Fannie and Freddie before the collapse.. No this crisis is ALL on the Democrats who had control of all three branches and burned more cash.. And HOW can I forget Obamacare and its trillion dollar plus per year need in building new agencies and hiring. ITS ALL Democrats spend spend spend

    ReplyReply

  • Bill 1 hour ago
  • Well, well, well, Irksome, and how long have you been asleep. Can you wake up the democrats and maybe the president, too?

    Ohanake and 2 more liked this ReplyReply

  • ChicagoBob123 9 minutes ago in reply to Bill
  • I would like to add where has the PRESS BEEN $1.4 trillion deficit and they never GRILL them about it. 5 billion a day we borrow. In previous years we would run about a 200billion dollar deficit and the democrats would say OMG now they are quite like church mice.. Gee I guess a 700% increase is no big deal. Its time to end the democrat party go third party if necessary but no more democrats who lie and have caused the disaster this nation has ever known the debt disaster. OR do you love Americans borrowing from Saudis Chinese and others who would love to destroy us?

    ReplyReply

  • cowboy 1 hour ago
  • when those we elect decide not to listen to the people we are heading down a path that brought the United States in to this world.Or have you people forgotten we went to war with a Government that did not listen to the people .G od help us all if Washington does not start to listen .the unrest we see in the Mideast can also happen here …..it is the people of this country who make the laws not the few in Washington who think they know how we should live

    Ohanake and 9 more liked this ReplyReply

  • George Colgrove 1 hour ago

  • We the people, trusted congress and the president along with the millions of federal workers to do the work for the people while we the people ran the country. A representative government suggests that we the people put other people in basic administrative jobs that have to be done so that entrepreneurs and their employees can make the things that make life great. But federal workers got greedy and seeing that we the people had better things to do than watch who they were putting in charge of the chicken house, they started to grab wealth, privilege and power. Now look at where we are. We find that they put a fox in charge of the henhouse and there are no more hens.

    Once we get this fixed, we have to understand that government is never to be trusted again. All government oversight, GAO, CBO, Open Government initiatives, FOIA, and all the others needs to be brought out of government and operated in the private sector. The feds have fully disclose 100% of their documents to these private sector oversight organizations with the exceptions of immediate national security. And even that has to have 100% full oversight by non-governmental teams of people with subject matter expertise and field experience. All line items will see scrutiny.

    Federal workers should not have permanent careers in government. Government jobs should have a maximum of 10 years then the person moves on. We have been screwed by congress, the various presidents and this insidious unionized federal workforce.

    As Jefferson said:
    “The two enemies of the people are criminals and government, so let us tie the second down with the chains of the constitution so the second will not become the legalized version of the first.”

    Lets fix this mess and educate the people about the constitution so that this never happens again. Had we just followed the constitution, the mess we have right now would have never happened.

  • 13 people liked this. ReplyReply

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    About billmoore353

    Retired LTC- USAR Former HS Principal- John A. Holmes HS in Edenton, NC Former HS Principal- Roosevelt HS in Yonkers, NY
    This entry was posted in Budget, ECONOMY, Politics, Uncategorized. Bookmark the permalink.

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