Treasury Says 30-Year Bond Is Returning....Move to Help Finance National D

[Rose Siding]

...a Move to Help Finance National Debt

WASHINGTON (AP) -- The Bush administration said Wednesday it is bringing back the 30-year Treasury bond, a move that could help finance the national debt and appeal to investors looking for a safe, longer-term investment option.

The Treasury Department said the first auction of the bonds will take place in the first quarter of 2006, with auctions held twice a year.

The United States stopped selling the "long" bond in 2001, which turned out to be the last year the government produced a budget surplus. Since then, record red ink has pushed the national debt to $7.8 trillion.
.....
Sen. Jon Corzine, D-N.J., once a top executive at Goldman Sachs, said bringing back the long bond was a good idea. He used the announcement, though, as an opportunity to jab the administration. "The bond has become all the more necessary in light of the federal government's excessive borrowing," he said.
.....
In other debt news, the department's best estimate is that the government in the first quarter of 2006 will bump up against the $8.18 trillion debt ceiling set by Congress, Bitsberger said. That would mean the government would probably have to shuffle finances to pay its bills until additional borrowing authority is provided by lawmakers.

http://biz.yahoo.com/ap/050803/30_year_bond.html?.v=9

[UpInArms]

1. the National Debt - unseen unspoken

Debt Limit to Rise to $8.18 Trillion
Tax Cut, Spending Caps Are Rejected

By Jonathan Weisman
Washington Post Staff Writer
Friday, November 19, 2004; Page A06

http://www.washingtonpost.com/ac2/wp-dyn/A60963-2004Nov18

excerpt:

With last night's passage of the debt ceiling increase, the government's borrowing limit has climbed by $2.23 trillion since President Bush took office: by $450 billion in 2002, by a record $984 billion in 2003 and by $800 billion this year. Just the increase in the debt ceiling over the past three years is nearly 2 1/2 times the entire federal debt accumulated between 1776 and 1980.

A recession, a sluggish economy and five tax cuts in four years -- coupled with soaring defense spending on wars in Iraq and Afghanistan and rising domestic spending -- have turned record surpluses that Bush inherited into a record deficit of $413 billion in the past fiscal year.

Economists and budget hawks fear that rising deficits are contributing to the steadily declining value of the dollar, which will increase consumer costs, and that those deficits eventually will drive up interest rates and slow the economy.

As the national debt continues to mount, Washington is having difficulty keeping up. In August, Treasury Secretary John W. Snow implored Congress to raise the debt limit to ensure that the Treasury could continue to borrow the money it needed to finance government operations and pay benefits such as Social Security. But with an election looming, lawmakers declined to act.

Last month, the government crashed into the debt ceiling, and the Treasury began borrowing from a civil service retirement fund. On Monday, the Treasury announced it had postponed an auction of short-term Treasury bonds because it was prohibited from borrowing the money. Yesterday, amid continuing uncertainty about Congress's intentions, the agency delayed revealing how many government securities it plans to sell next week. Treasury again warned that the government could default on its debt as soon as today if Congress did not act.

...more...



he estimated population of the United States is 296,674,344
so each citizen's share of this debt is $26,574.63.

The National Debt has continued to increase an average of
$1.64 billion per day since September 30, 2004

http://www.cnn.com/2003/ALLPOLITICS/02/20/debt.limit.ap/

Government hits national debt ceiling
Treasury begins taking evasive actions

Thursday, February 20, 2003 Posted: 11:59 AM EST (1659 GMT)

excerpt:

The drama was similar to one that unfolded last year as Congress finally raised the debt ceiling from $5.95 trillion to the current limit of $6.4 trillion on June 28, but only after months of debate and brinksmanship with then-Treasury Secretary Paul O'Neill having to resort to ever-more elaborate procedures to shift funds in order to clear room for necessary borrowing.

Republicans will push to approve the Bush administration's request for a higher debt limit, citing the need to protect the country's excellent credit rating. U.S. Treasury securities are considered the safest investment in the world because the government has always met its obligations.

...more...

Debt ceiling has been raised 4 times - from $5.95 trillion to $8.18 trillion since *Co took office.

What was a "surplus" and a SS "lockbox" has been a giant candy dish for the BFEE and it cronies.