Thursday, May 05, 2011

Most Disturbing

I knew this was happening, but I never really thought about the implications until just now.
We're going to hit the debt ceiling in the middle of this month, but the Fed has some accounting tricks it can pull to buy us a few weeks.
This, however, ought to make you madder'n hell:

The Treasury estimates that it can avoid a crisis until early August with few if any lasting consequences by spending about $100 billion in cash that it keeps on deposit with the Federal Reserve, the nation’s central bank, and by temporarily suspending $232 billion in special-purpose borrowing programs so it can instead borrow money to finance general operations.

Emphasis added.

That's us. Borrowing, AT INTEREST, money we've lent to American banks, INTEREST-FREE!

Don't they, you know, owe us?