Sen. Risch warns of possible financial crisis

Print Article

Sen. Jim Risch (R-ID) gives an emphatic speech Thursday at the Jobs Plus luncheon in Coeur d'Alene.

COEUR d'ALENE - After a look inside how the United States borrows money, U.S. Sen. Jim Risch describes it as a Ponzi scheme.

One that could put the country in a financial crisis, either months or years from now.

"This can't go on," Risch said Thursday, in Coeur d'Alene as part of his tour of North Idaho, speaking about the nation's debt.

The senator was shown the ins and outs earlier this year on how the country borrows money through the Bureau of Public Debt through the U.S. Department of Treasury.

In a nutshell, the bureau borrows money needed to operate the federal government.

The country borrows $4 to $5 billion a day just to meet its daily bills for the new debt that day, plus $40 billion a day for outstanding debts coming due that day.

Those totals are borrowed every day, on top of the $14 trillion national debt.

And there's no paper trail. Transfers are done electronically, without a paper certificate or bond.

"There's no money," the senator said. "It's a Ponzi scheme."

A quarter of the loans come from the Chinese, a quarter from other countries, and a quarter from private investors.

"What happens," Risch asked, "when people stop loaning us money?"

Getting the country's debt in line is a top priority for the senator. A passionate speaker on the topic, he admits he's an outlier in Washington circles with his concern, although he supports Pennsylvania Sen. Pat Toomey's proposed budget that cuts funding for departments across the board.

Defense, education, research, you name it, funding there should be cut to balance the budget, Risch said, and a Congress that fully grasps the problem is needed.

Cuts will hurt, he said, but are necessary.

"I'm telling you, there's going to come a day, and everyone will be affected."

The look into day-to-day operation of the Bureau of Public Debt was hard to absorb. It left him angry and a little sad. He's speaking about it to pass the message of the big numbers some people might have a difficult time comprehending.

"It didn't hit me there. It took time for this to set in. What I realized was this country is no longer the master of its own destiny."

Print Article

Read More Business

Community steps up for cancer patients

October 14, 2018 at 5:00 am | Coeur d'Alene Press With October being National Breast Cancer Awareness Month, it seemed a good time to review the support Kootenai Health and the Foundation provides to local cancer patients. There are walks, fun run...

Comments

Read More

OPINION: HARVEY MACKAY — Don’t look back in business

October 14, 2018 at 5:00 am | Coeur d'Alene Press A farmer famed for his agricultural knowhow once hired a neighbor’s teenage son to help him do the spring plowing. The farmer believed in letting people do their work without undue supervision, so he...

Comments

Read More

Saudis reject threats as stocks plunge after Trump comments

AP

October 14, 2018 at 5:52 am | DUBAI, United Arab Emirates (AP) — Saudi Arabia warned Sunday it will respond to any "threats" against it as its stock market plunged following President Donald Trump's warning of "severe punishment"...

Comments

Read More

Merger includes two local banks

October 12, 2018 at 5:00 am | Coeur d'Alene Press A Billings, Mont.-based community bank with more than 120 branches throughout six states will acquire two Kootenai County banks and expand its presence in Idaho. First Interstate BancSystem, Inc....

Comments

Read More

Contact Us

(208) 664-8176
215 N. Second St
Coeur d'Alene, Idaho 83814

©2018 The Coeur d'Alene Press Terms of Use Privacy Policy
X
X