The Treasury Department's Financial Management Service is reporting that in July the federal government ran a deficit of $98 billion but that the federal government's debt remained exactly $16,699,396,000,000 for the entire month. At that static level, the debt was just $25 million below the legal limit that was set by law.
By Terence P. Jeffrey
August 14, 2013 - 4:15 AM
The Treasury Department's Financial Management Service (FMS), which publishes both the federal government's official Daily Treasury Statement and its official Monthly Treasury Statement, is reporting that in July the federal government ran a deficit of $98 billion but that the federal government's debt remained exactly $16,699,396,000,000 for the entire month.
The FMS said that the deficit went up $98 billion ($97,594,000,000) in the Monthly Treasury Statment for July, which it released on Monday.
At the same time, the FMS said the debt stayed at exactly $16,699,396,000,000 in its Daily Treasury Statements, which are published every business day. The Daily Treasury Statements show the daily value of the federal government debt that is subject to a legal limit set by Congress.
At the static $16,699,396,000,000 level that the Treasury reported for every day of July, the debt was just $25 million below the legal limit of $16,699,421,000,000 that was set in a law passed by Congress and signed by President Barack Obama.
If Treasury's daily statements were to declare that the government had borrowed an additional net $98 billion to cover the $98 billion deficit the Treasury declared in its monthly statement for July, the Treasury would be conceding that the government had already surpassed the legal limit on the debt--and has been violating the law by continuing to borrowing additional money.
Instead, even as the Treasury was running up the $98-billion deficit it reported in the July Monthly Treasury Statement, every one of the 22 Daily Treasury Statements published for July said the Treasury had closed out the previous business day with exactly $16,699,396,000,000 in debt.
The Daily Treasury Statement for Aug. 12, released Tuesday afternoon, says the debt remained stuck at exactly $16,699,396,000,000 during the first 12 days of this month, too.
On May 17, the first day the Treasury reported that the debt had hit exactly $16,699,396,000,000--and was thus just $25 million below the legal limit--Treasury Secretary Lew sent a letter to House Speaker John Boehner saying he was beginning to implement what he called "the standard set of extraordinary measures" to prevent the Treasury from exceeding the legal limit on the federal debt.
Since Lew sent that letter--announcing that he would use "extraordinary measures"--the debt has remained stuck at exactly $16,699,396,000,000 for 87 straight days.
That includes all 31 days in July when Lew's Treasury says it was running a $98 billion deficit.
When Lew stops using "extraordinary measures" to keep the debt at exactly $16,699,396,000,000, the government will have another debt-limit crisis.
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