The accounting fraud behind the debt ceiling

Published October 5, 2017 4:01am ET



President Donald Trump’s debt ceiling compromise with congressional Democrats earlier this month kept the government open through December and represented the first major bipartisan compromise of the administration. However, after an all-encompassing level of coverage in real time, the media quickly moved on to the next day’s news cycle and interest in the debt ceiling waned. If you were to ask the average American today to recall what happened, the majority likely would tell you that the deal was a win for the nation.

Unfortunately, raising the debt ceiling yet again has resulted in rapid and entirely foreseeable financial consequences that are detailed in the ledgers of the U.S. Treasury Department’s “Debt to the Penny” website. Just 24 hours after Trump signed the measure, a torrent of $317 billion in concealed—and technically unauthorized—government spending made its way onto official ledgers for the first time. In the last two weeks alone, that number hit a staggering $335 billion. This significant development is only the beginning of what’s likely to be a tumultuous time for the country’s fiscal health.

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