Must Be Magic – Despite Massive Deficit No Increase In National Debt During August

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I want the US Treasury to start keeping my books. I could go shopping night and day, running up my credit cards for a month, only to have no additional debt. It must be magic!

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The federal deficit increased by $146 billion in August, according to a report released today by the Congressional Budget Office. But, at the same time, according to the U.S. Treasury, the federal debt did not increase at all during the month.

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Total federal receipts were $185 billion during August, according to the CBO, while total federal outlays were $331 billion. Thus, the Treasury was forced to engage in $146 billion in deficit spending.

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Despite this deficit spending, the Treasury reported that at the close of every single business day in August, the federal debt subject to a legal limit by Congress remained exactly $16,699,396,000,000.

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That is approximately just $25 million below the legal limit on the debt that is $16,699,421,095,673.60. (Read More)

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I’m sure they aren’t using tricky accounting methods to keep from hitting the debt ceiling. That would be dishonest, and we all know how honest and trustworthy these unelected bureaucrats are. Right?

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