Debt... Will that be Visa or MasterCard?

[mike.redd1266]

I saw this and had to share right away! it is so true and sad. America has a debt problem. Not just the Government but everyone.

Source Rare.us | House of cards

I say we burn our credit cards to only use the money we make to pay for things we need or want. Imagine only spending what you have, soooooo innovative...

Is there any one else out there that feels the same way? are there any politicians that think this way?

 

[waltky]

Granny says it's like pourin' money down a rat-hole...

Roll Over Plan: Treasury Needed to Pay Off Record $7.5T in Maturing Debt in FY 2013, Issued $8.3T New Debt; Increased Net Debt $777B
October 7, 2013 -- The U.S. Treasury needed to pay off a record of approximately $7,546,726,000,000 in maturing Treasury securities in fiscal 2013, which ended last Monday, according to Treasury's official accounting.

During the same period, the Treasury turned around and issued another $8,323,949,000,000 in new Treasury securities. The spread between the old debt held by the public that matured and was paid off during the fiscal year and the new debt that was sold to cover government spending over and above tax revenues, increased the net federal government debt held by the public by $777.223 billion during the fiscal year. In the previous fiscal year, 2012, the Treasury had needed to redeem only $6,804,956,000,000 in Treasury securities, but then it needed to turn around and issue $7,924,651,000,000 in new securities—increasing the net debt held by the public by $1.119695 trillion.

The Treasury was forced to redeem a record amount of old debt in fiscal 2013, even though the debt did not increase as much as it had in fiscal 2012, because a large portion of the debt is composed of shorter-term Treasury bills and notes, for which the government can pay a lower interest rate than it would need to pay on longer term Treasury bonds. Treasury bills have maturities of anywhere from a few days to 52 weeks. Treasury notes have maturities of between two years and ten years. Treasury bonds have maturities of 30 years. And the Treasury also sells Treasury-Inflation Protected Securites (TIPS), which have terms of 5, 10 or 30 years.

In September 2013, the average interest rate the Treasury paid on Treasury bills was 0.074 percent. The average interest rate it paid on Treasury notes was 1.808 percent. The average interest rate it paid on inflation-protected securities was 1.084 percent. And the average interest rate it paid on 30-year Treasury bonds was 5.101 percent. That means the interest rate the Treasury needed to pay on its long-term bonds was about 69 times as great as the interest it paid on its short-term bills. As of the end of fiscal 2013, the U.S. government’s marketable debt held by the public was approximately $11,577,400,000,000. That included approximately $7,750,336,000,000 in medium-term Treasury notes, $1,527,909,000,000 in short-term Treasury bills—and only approximately $1,363,114,000,000 in 30-year Treasury bonds.

The Treasury’s medium- and short-term low-interest notes and bills accounted for about $9,278,245,000,000—or 80 percent—of the government’s $11,577,400,000,000 debt held by the public. Thanks to the short-term, quick-roll-over nature of most of the federal government’s marketable debt, the average interest rate on the government’s marketable debt was just 1.981 percent in September. In January 2000, it was 6.620 percent—or 3.3 times as great as it is now.

- See more at: Roll Over Plan: Treasury Needed to Pay Off Record $7.5T in Maturing Debt in FY 2013, Issued $8.3T New Debt; Increased Net Debt $777B | CNS News

See also:

Boehner: 'We Are Not Going to Pass a Clean Debt Limit Increase'
October 7, 2013 -- Previous presidents -- even President Obama -- have negotiated deals as part of raising the nation's debt limit in the past, and this time won't be any different, House Speaker John Boehner told ABC's "This Week With George Stephanopoulos" on Sunday.

"We are not going to pass a clean debt limit increase," Boehner said. "I told the president, there is no way we're going to pass -- when the votes are not in the House -- to pass a clean debt limit. And the president is risking default by not having a conversation with us." "So under no circumstances will you pass a clean debt limit?" Stephanopoulos repeated.

"We are not going down that path," Boehner responded. "It is time to deal with America's problems. How can you raise the debt limit and do nothing about the underlying problem? George, we've spent more than what we've brought in for 55 of the last 60 years. This year, the federal government will have more revenue than any year -- any year in the history of our country, and yet, we're still going to have a nearly $700 billion budget deficit. We are squandering the future for our kids and our grandkids by not dealing with this problem."

Boehner said he agrees with the Treasury Department's assessment that failure to raise the debt limit would be catastrophic: "And the president is putting the nation at risk by his refusal to sit down and have a conversation," he said several times. Boehner said his goal is not to have the United States default on its debt: "My goal here is to have a serious conversation about those things that are driving the deficit and driving the debt up." Asked if he would be willing to consider higher taxes as part of any debt limit negotiation, Boehner said no: "The president got $850 billion -- or $650 billion of new revenues on January 1st. He got his revenues. Now it's time to talk about the spending problem." "So that's a no?" Stephanopoulos asked. "Very simple. We're not raising taxes," Boehner said.

Asked how the current impasse will end, Boehner said it will end when President Obama "decides to allow Harry Reid to talk to me or allow Patty Murray to talk to Paul Ryan. The president just can't sit there and say, I'm not going to negotiate." Boehner said he stayed in Washington this weekend, thinking President Obama might want to talk to him. "He knows what my phone number is. All he has to do is call." Later, Boehner repeated his willingness to talk: "George, I'm ready for the phone call. I'm ready for a conversation. I'll take anybody on the Democrat side who wants to seriously sit down and begin to work out this problem.""When is this going to end?" Stephanopoulos asked. Boehner told him, "If I knew, I'd tell you."


- See more at: http://cnsnews.com/news/article/sus...lean-debt-limit-increase#sthash.X1E9I7Fe.dpuf