Skip to comments.US Default? Since 2008, Net Interest Costs UP 192%, Social Security And Health Entitlements UP 140%, Nondefense Discretionary Spending UP 76% Based On 2032 Federal Budget
Posted on 01/15/2023 9:08:05 AM PST by Kaiser8408a
Newly-minted US House Speaker Kevin McCarthy faces a daunting task: trying to avoid a US debt default. As I have discussed many times before, nothing has been the same since the US housing bubble and near-collapse of the banking system that produced an expensive bailout of seemingly all financial institutions. After 2008, Federal spending has gone out of control. The budgetary hawks (or pigeons) in the US House of Representatives (with Pelosi, Boehner, Ryan then Pelosi again) went on Federal spending sprees of epic proportions.
The Manhattan Institute has a nice chart showing the explosion in the Federal budget since 2008. Of particular note, interest payments on the Federal debt has increased by a staggering 192%. On the non-interest spending front, Social Security and Health Entitlements have increased by 140% while Nondefense Discretionary Spending has increased 76%.
The massive increase in Federal debt interest is due to both increased Federal spending and rising interest rates thanks to The Federal Reserve raising rates to fight inflation.
But what will McCarthy and House Republicans recommend cuts in? Tighter restrictions on who qualifies for Social Security and particularly Social Security Disability payments?
The odd factoid is that Defense and Wars budget is up less than 1% from 2008 to 2032. So, Ukraine military aid is coming from somewhere, but not from the Defense budget. Is Ukraine another entitlement program?
Rest assured that after debate, the House will pass a budget and, provided that virtually nothing was cut, the Senate will gleefully agree to more spending and “Top Secret Documents” Biden will sign it.
After he parks his gorgeous Corvette Sting Ray, that is.
(Excerpt) Read more at confoundedinterest.net ...
> US House Speaker Kevin McCarthy faces a daunting task: trying to avoid a US debt default <
Daunting task? I don’t think so. McCarthy will fuss a little, then approve more borrowing and spending. Just kick that can down the road a bit more.
It’s actually pretty easy.
Which is EXACTLY why it is called an "entitlement"! I don't understand why so many on our side don't understand this simple word.
Our total debt might pass the one quadrillion mark by the end of this decade - but if the interest payments have no direct impact on the lives of elites over the few months directly ahead, no one will care.
A Great Reset is coming.
Bank 🏦🏦🏦🏧🏧🏧 on it.
Pun absolutely intended.
Yes, you are correct. Good point.
The old Chinese curse, “May you live in interesting times”, has befallen the US and probably most of the rest of the world.
We shall lose everything. This is all in conformity with Klaus Schwab and the World Economic Forum, which is a revival of the Third Reich and its “new” economic model.
Save your Confederate money, the South is gonna rise again.
“Which is EXACTLY why it is called an “entitlement””
But if government legislates that I will get $1000 per month no strings attached, then am I by law entitled to it?
Yes, entitled by a likely politically driven, crappy law. But deserving or morally or ethically justified to such money? That's another matter.
"The U.S. government paid $562.4 billion in interest in fiscal year 2021, while earning $210.1 billion in interest and investment income. Its net interest costs are expected to increase to $1.2 trillion annually by 2032."
I’m sensing a new attack on social security by Republicans. The Stupid Party doesn’t adequately describes them.
Yes it is/was.... and if it had been put into a bank under our own names many if us would be millionaires ...Inflation is the dirty little secret of “fiat money” and the Founding Fathers understood that...
What’s the cost on illegal aliens ?
What portion of entitlements is paid for benefits that were never intended?
Dumbo made it a form of permanent welfare.
Nope, Military fascism
“As long as our dollar remains backed by the full faith and credit of the United States Marine Corps”
History suggests you have it backwards.
When the Empire can no longer pay the salaries of the Imperial Troops then the Empire falls.
That could happen with hyperinflation (so the salaries paid are in fact worthless) or it could happen with infrastructure collapse (where there is no practical way to get resources around the world). One other way it could happen is if the Empire splits by secession or other collapse so the currency has no value in international markets.
The key point is this—currencies don’t last very long in historical terms—a few hundred years is an above average run...
I wish it wasn’t but I see no way it’s going to be avoided.
It’s a Sign of the Times. IMHO
And yes, we do indeed live in interesting times. And yes it’s apparently a Chinese curse for real.
Thanks for the headline warning that this is a silly article. The USA is nowhere a default.
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