Posted on 11/22/2023 9:01:44 AM PST by Kaiser8408a
The US is experiencing a fiscal inferno thanks to out of control Federal spending and debt issurace.
The US government collects about $2.5 trillion per year in personal income taxes. Of that about $1 trillion per year (40%) is being consumed by interest on the national debt. REAL Federal interest payments of the debt is skyrocketing!
Interest on the debt is growing as old cheap debt matures and gets refinanced at the new higher rates. Plus new debt added every year.
Within a few more years, at this pace, 100% of personal income taxes will be going to pay interest on the US national debt.
Yes, US national debt is at $33.75 trillion and growing awfully fast. Of course, that is small potatoes compared to the $211.7 TRILLION in unfunded Federal promises (entitlements). That means that unfunded promises are 6.27 times the current national debt. There isn’t enough taxable income from individuals to pay for the promised entitlements.
NY Senator Chuckles Schumer: “We did it Joe! We broke the back of the US economy!”
(Excerpt) Read more at confoundedinterest.net ...
Some of us have been warning about this for years. This was all entirely predictable and known by the politicians in charge.
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Just those five? How about every congressthing that ever voted for it, and every President who ever signed it into law?
My leftist professors always assured me:
“We owe it to ourselves.”
Lol.
Stop the unconstitutional welfare, now, today. No more. We’re broke. And that also means no illegal alien support. Toss ‘em out pronto.
This is not just a Biden/Democrat problem. Trump did a lot of good things when he was president. Number one being that he kept the peace. But he did nothing to rein in the debt. Nothing.
Will Trump 2.0 be better? We can only hope so.
If they let Trump and the Republicans take control in 24 expect them to crash it completely on their watch so they can blame them.
I believe the total government intake is about 5 trillion(Found that number in multiple places a while back) so they must make some money somewhere else. But the interest is a staggering amount.
Good discussion and numbers in this article:
https://www.zerohedge.com/economics/david-stockman-washingtons-fiscal-doomsday-machine
The "entitlements" this article is referencing is comprised primarily of Social Security and Medicare. Comparatively speaking, all other federal "welfare" spending, as you call it, is de minimis.
There's no longer any politically feasible fix for the problem. The country is now in a post-iceberg environment. It is going down. It's just a matter of "how much time do we have left?"
“The US government collects about $2.5 trillion per year in personal income taxes. “
The US Treasury reports that in fiscal year 2022, individual income tax and tax withholdings was about 4 trillion. The “2.5” versus “4” is puzzling to me. Does the article leave out the withholdings?
Ooh, a new catch phrase. This guy must stay up late thinking of these. “Fiscal Inferno”! Disco Inferno, Fiscal Inferno, get it? Shallow.
No way welfare to the 12 percent will ever stop. No way cash to the aliens will stop. The feds don’t want burn loot riot on their hands. Easier to shut down Social Security and Medicare. Those recipients don’t riot. There. Fixed it. Ho hum.
“The country is now in a post-iceberg environment. It is going down. It’s just a matter of “how much time do we have left?”
The insiders know this.
That is why they are just stealing what they can while they can.
No mention of government intake that I saw. They mention the GDP which is not a number that directly determines what the government takes in. It is deceptive that so many articles compare the interest on the debt to GDP since most of that is not government income. All those fancy numbers are given and yet the most important numbers here are Income and debt interest. Which are 5 trillion and 1 Trillion respectively. And it is quickly getting worse.
I believe it's a distinction between FICA withholdings going towards something the worker (and his employer) paying into something owed back to the worker later either in retirement (social security) or if he gets disabled (collecting disability after paying disability premiums for years). Ostensibly the government doesn't touch that money, so don't talk about it as government income like the other. But on the other hand, it is part of the debt owed to Americans and is more debt owed (paid out) than is taken in. So in a way it's a kind of welfare in that most people receive more than they put in. And it grows.
But because people put into it they feel that they've earned it and thus they feel that it's not welfare. My take is that it is welfare if you take out more than you put in. My take is we should end social security and disability, give back to all Americans as much as they put in (maybe with some interest), and be done. The smart Americans will save and invest for their future and the dumb ones will blow it all like they always do and be broke in their elder years. Either way we all get what we want and our financial futures aren't managed by broke, corrupt government.
Indeed.
Every adult American should write ourselves checks for 'our share' of the
$33.75 trillion, and then demand that they cash them at the bank.
I'm sure it'll work out just fine. /s
“I believe the total government intake is about 5 trillion(Found that number in multiple places a while back) so they must make some money somewhere else.”
The author was very careful to point out that it was a percentage of PERSONAL income taxes, which means it didn’t include CORPORATE or other taxes.
And he didn’t bother to include that little detail because he wanted the story to seem even scarier than it is.
If you’ve read other posts from this author you know he’s the ultimate doom and gloom. Don’t expect a balanced analysis from him.
“I believe it’s a distinction between FICA withholdings ...”
Do you think “withholdings” in the article refers to FICA withholdings”.
My main question is, do we have a real problem or is this just a routine excess of debt. There might be benefits to inflation. Other countries, Israel comes to mind, have had periods of huge inflation and they survived.
The financing of our government, or should I say the way it’s presented to us, seems like intentional covering up. All of the terms: the Treasury, the Federal Reserve, the Central Banks. bond issuing, selling, buying, interest rates, inflation, deflation, unfunded liabilities, quantitative easing, ...
Here’s a starter to clear things up. Don’t refer to the selling and buying of bonds. It’s lending and borrowing. Tell us straightforward how money is put into circulation and taken out of circulation. Put these pieces together for us.
Clearly, some of the reasoning is not intended to be given straightforward to the public because the decisions benefit some and hurt others, and we know who wants to get the benefits.
Regarding our social security system, we pay into it and are promised “something” as we get old. Today’s recipients are getting out more than they would have gotten if they’d put their money in “safe” investments. Our youngsters are paying the difference. I suspect the biggest nasty on the youngsters is medicare.
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