Dooms-Day On U.S. Treasuries?

03/06/2006

Paul Munnis

As press secretary Lockhart came onto CSPAN today and began touting the Bush economic record we decided that we had better check and see what is really going on. We found Treasury Bonds and Notes under pressure, U.S. stocks falling, and gold prices somewhat flat.

We wondered why the U.S. Treasuries were under siege and found that the U.S. government is now reaching its debt limit ceiling and that unless the deficit ceiling is raised then the U.S., sometime in the third week of March, will start defaulting on its Bonds to investors. You can read about it HERE.

Our Treasury Department has seized U.S. government employee retirement and pension funds to try to cover the interest payment exposure.

Bush and Snow are both pressuring Congress to raise the debt ceiling and many Democrats are pointing out that the off-budget manipulation of war costs for Iraq and Afghanistan has already put the U.S. over the debt limit.

So Bush has done it – he has reached the wished for point by The Tax Payers League – he has managed to “drown the U.S. economy like a baby in a bath tub.”

This defaulting of the U.S. Treasury debt is a dooms-day scenario and the fact that Bush has allowed the U.S. to come this close to default is an awful thing just in its own right. The fact that Congress, the body given to protecting the U.S. economy, has allowed it to come to this point is now the final straw.

Sen. Max Baucus, D-Mont., said last week that under President Bush the total of the deficits has increased by $3 trillion, a 40 percent increase from where the national debt - the total of previous deficits - stood when Bush took office in January 2001.

The GOP members of the U.S. Congress must go. They are totally irresponsible in their fiscal responsibilities to America.