Posted on 03/10/2024 9:13:09 AM PDT by Kaiser8408a
In statistics we talk about “jump processes.” Like Federal government spending every time there is a financial crisis like the subprime crisis of 2008-2009 and the Covid lockdowns of 2020. Each crisis brought a jump in the level of spending and jump in Federal debt.
Federal debt under Biden started at $27.7 trillion and is currently at $34.5 trillion, that amounts to $6.75 TRILLION in additional debt under Old Grand-dad Joe Biden. Federal spending, of course, is out of control with Biden/Congress spending $569 BILLION since Joey took office.
Generally speaking, the Federal government needs to justify the elevated levels of Federal spending, like another COVID outbreak, escalate the war in Ukraine, get into a hot war with Iran and China, or … say … Washington DC pols never need much of an excuse to go on a spending spree.
If only Biden would retired gracefully. He could be the new face of “Old Grand-dad Bourbon Whiskey.” Except Biden’s version would be an angry 80+ year old man with dementia.
(Excerpt) Read more at confoundedinterest.net ...
If only there was a way for Speaker Johnson and the House to decrease spending.
You gotta pay to play fatten your wallet.
This is the nature of ALL fiat monetary systems throughout history - the ability to spend, the ability to borrow, and the ability to print all to enhance power and social-engineering schemes of those in power.
The answer, once again, is money that is NOT in the hands humans, but rather, God and mother nature.
If you are going to have Caps in your title and breathless exclamation of numbers in the OP posting, at least get the numbers right.
Spending by the gubmint is about $6.5T. Revs about $4.5T for a $1.8T deficit. The spending is $6.5T per year and God knows how the OP decided that added up to $569B after 3+ years.
$35T is the current number and it will be $36T by election day. Current consolidated interest (the combination of all the maturity durations of Treasury instruments in that debt) is 3.2% and rising since the Fed has short term paper at 5.5% and each new issuance has to reflect that.
At 4% that $36T will be generating $1.44T in interest expense. This is part of the $6.5T spending. There is a desperate unanimous hope that inflation trends down, but there is zero guarantee this will happen. It ticked up the last couple of months.
If it does, that will mean the Fed will not cut, and might increase rates.
Short term rates are 5.5% right now and that’s not abnormal historically. It is abnormal over the last 10 years during monumental QE, but over the very long term, 5.5% is not absurdly high.
Doesn’t anyone wonder where the money is coming from that they are getting at a moments notice? Is no one asking about obvious slush funds or the borrowing of earmarked funds while raising taxes and giving themselves a raise taken from social security, medicare, or other people oriented set aside cash?
Until those questions are asked, and a legit answer given, the mystery continues and no one can take the blame for mismanagement. Shrewd... But when the well goes dry, or gets so low there’s nothing but mud, then who will die of thirst first? Won’t be the people that caused the drain. They’ve already prepared for that and have wells set aside for themselves like in the Caymans. And the problem is that the people who should be asking those questions without being accused of an insurrection, are hip deep in it right now and just as wet as the perpetrators. Or are they the perpetrators.
wy69
Another completely non-understandable post by this author.
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