Posted on 01/28/2023 8:41:22 AM PST by Kaiser8408a
I was interviewed by James Rosen at Fox News on the exploding US debt and whether it is a problem. I said “Yes, the sheer size of the US debt load in unsustainable and will get worse if interest rates rise.” Well, here we are!
The US paid $853 billion in interest for the $31 trillion in debt in 2022.
That is more than the US Defense budget in 2023.
If the Fed keeps rates at at these levels (or higher), the US we will be at $1.2 trillion to $1.5 trillion in interest paid on the debt.
The US govt collects about $4.9 trillion in taxes.
Thanks for this, Biden, Pelosi, Schumer! Aka, The Spend Squad!
(Excerpt) Read more at confoundedinterest.net ...
The Fed currently holds about $5.435 trillion in Treasuries. The interest paid on these securities is remitted to the government.
$853 billion. Is that all?
You know what they say...
"VenAHAfoch hu" 😉
Part of the plan to force U.S. into the Great Reset. PRAY.
America’s printed, fiat currency, issued by the Federal Reserve, is the foundation of the woke-progressive state.
it allows massive debt, and the funding of 1000 social engineering schemes, political corruption, massive government, etc...
In other words - a Ponzi Scheme
“Thanks for this, Biden, Pelosi, Schumer! Aka, The Spend Squad!”
Many more deserve “thanks” for this mess. Paul Ryan, Obama, Bush, heck, even Trump spent like crazy.
Cut spending NOW!!!
And we pay this to the unconstitutional federal Reserve Bank, and we are not allowed to know who owns this bank, or audit it.
Back under Reagan it was decided that debt was good. Spending was increased, especially on defense, while taxes were cut.
The basic idea was that as debt increased, interest on the debt would crowd out other government programs, causing government to shrink. At some point, the government’s power to tax only results in transferring wealth from the taxpayers to the bondholders.
This was actually the situation in France prior to the Revolution. Debt from the Seven Years War and other misadventures, such as supporting the American War of Independence, consumed the taxation power of the French government.
That’s worse than Mafia type interest.
But, it’s always other people’s money, so, easy come, easy go.
They have to lower rates. Stonks go up.
But we need to keep sending money and resources to Ukraine, because reasons.
Awwww... that sure is nice of them to loan the government 5 trillion and not even collect any interest. That must be why they resist audits tooth and nail.
That’s about $2,600 for every man, woman, child, and baby. If you just count taxpayers, it’s probably about $4,000-$5,000 per person, if not more.
This was the goal of the left:
To get the U.S. to dig its own grave so deep it’s impossible to climb out of.
“Back under Reagan it was decided that debt was good. Spending was increased, especially on defense, while taxes were cut.”
That is the democrat line. Yes, we spent more on defense. But saying taxes were cut is very disingenuous. The heavily mocked Laffer Curve was very real. The idiot GHW Bush called it voodoo economics. The concept was that a high tax rate suppresses the economy. A drastic cut in tax rates results in far more tax REVENUE being brought in.
Bottom line, when Reagan took office in 1980, the US Government took in 517 billion dollars. In 1988 AFTER Reagans tax cut, the government took in 909 billion.
Emotionally, a lower tax rate seems like a smaller piece of the pie. But if lowering it doubles the size of the pie, its a much bigger slice of food.
If the Fed keeps rates at at these levels (or higher)
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