Happy Debt Day!
Apr 26th, 2009 | By Rob | Category: Government
Today is Debt Day this year, and so it is worthy of a post acknowledging that fact. What is Debt Day, you ask?
It’s the day on the government’s fiscal calendar in which the government can no longer claim to be spending money that it will take in over the course of the fiscal year. Every dollar spent from now until the government’s fiscal year ends on September 30 adds to the national debt.
In the past few years, Debt Day has fallen between July and September. Deficit spending this year accounts for just over 5 months of the government’s budget.
While I’m generally in favor of government spending in a recession to offset the contraction of the economy, I think we can all agree that our government’s spending is out of control. It’s pretty sad that the only entity capable of bailing out the banks from their balance sheet problems is itself in pretty bad financial shape. There is no larger entity that can bailout the government if it gets itself in trouble. The debt will be passed on to us as taxpayers.
So, Happy Debt Day!
Well, from my side of the fence, a lonely little debtor in an onion patch, I would love to be favored like so many of these despicable credit companies who suddenly “got religion” after Obama made them sit in the “dunce’s corner” at the White House pow-wow last month. Effectively, corporate America has received full financial “amnesty” as a “Madoff Nation” tries to recover from this culture of excess, which I fully admit being a party to. On a personal level it is a sobering experience to have to pay down debts for which I have little on reserve to honor. It is nonetheless extremely bothersome to me that at the corporate level there is no such “sobriety” being put into practice as of this writing, nor in the foreseeable future. Fill the hole with X billions, add water and watch the hole get deeper. The truth of the matter is that this nation no longer has an economic leg to stand on, let alone a pot to pee in, because we have lost the meaning of true currency. Digital credit is not related to GNP, it is simply x’s and o’s. Ou sont les bouillons d’entemps?