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Stop! Stop! Stop! US Public Debt Will Reach $60 Trillion By End Of 10-year Budget Window
Confounded Interest ^ | 05/05/2024 | Anthony B. Sanders

Posted on 05/05/2024 7:47:22 AM PDT by Kaiser8408a

Stop! Stop! Stop! … all the printing!

These people have to be stopped!

We are talking about the nation’s unhinged monetary politburo domiciled in the Eccles Building (The Federal Reserve), of course. It is bad enough that their relentless inflation of financial assets has showered the 1% with untold trillions of windfall gains, but their ultimate crime is that they lured the nation’s elected politician into a veritable fiscal trance. Consequently, future generations will be lugging the service costs on insuperable public debts for years to come.

For more than two decades these foolish PhDs and monetary apparatchiks drove the entire Treasury yield curve to rock bottom, even as public debt erupted skyward. In this context, the single biggest chunk of the Treasury debt lies in the 90-day T-bill sector, but between December 2007 and June 2023 the inflation-adjusted yield on this workhorse debt security was negative 95% of the time.

That’s right. During that 187-month span, the interest rate exceeded the running (LTM) inflation rate during only nine months, as depicted by the purple area picking above the zero bound in the chart, and even then by just a tad. All the rest of the time, Uncle Sam was happily taxing the inflationary rise in nominal incomes, even as his debt service payments were dramatically lagging the 78% rise of CPI during that period.

Inflation-Adjusted Yield On 90-Day T-bills, 2007 to 2022

What is also becoming more apparent by the day is that the money-printers at the Fed have led Washington into a massive fiscal calamity. It is only a matter of time, therefore, until the excrement hits the fan like never before.

(Excerpt) Read more at confoundedinterest.net ...


TOPICS: Business/Economy; Food; Government; Politics
KEYWORDS: debt; deficit; inflation
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To: Kaiser8408a

I wonder how long it will be before our wonderful government will empty out Ft. Knox’s gold bars to pay for their fiasco?


21 posted on 05/05/2024 8:34:56 AM PDT by antidemoncrat
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To: Kaiser8408a

The only plausible way out of this is a combination of SUBSTANTIAL cuts in spending, as in the abolition of entire departments and entitlements and massive tax increases. This will hit the middle class extremely hard as that is where most where the real money is.

Most politicians know this but they insist on whistling past the graveyard. They don’t want this to hit on their watch. It will be uglier than most can imagine.


22 posted on 05/05/2024 8:40:36 AM PDT by technically right
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To: Kazan

“NO NATIONAL INTEREST IN UKRAINE.”

The spending on Ukraine is PALTRY, MINISCULE against Biden’s unnecessary 0% “national interest” domestic spending.


23 posted on 05/05/2024 8:50:49 AM PDT by Wuli ( )
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To: Kaiser8408a; All

There is no stop. There is only the plan.


24 posted on 05/05/2024 9:13:22 AM PDT by SaxxonWoods (Are you ready for Black Lives MAGA? It's coming.)
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To: Angelino97
STOP UNCONSTITUTIOAL GOVERNMENT SPENDING,

To do so would cut off the money to tens of millions of recipients, citizens and illegals alike.

That's what they want people to think... people will die in the streets without the deficits we're running. Utter BS.

The Fed Gov spent $3.5T in 2014. They are spending more than $6.5T this year. Their spending has nearly doubled in 10 years! That money isn't going to improving roads, quality of life, or even supporting war efforts around the world. It's graft to the New World Order, pure and simple. They are bleeding us dry.

This is the result of continuing resolutions. They increased spending in the Fiscal Crisis... and continued to increase from that baseline. They increased spending in the COVID period... and continued the increases from that new baseline. It's baseline budgeting with automatic increases and there is never a reversion to historical norms... never a call for fiscal sanity.

25 posted on 05/05/2024 9:34:37 AM PDT by pgyanke (Republicans get in trouble when not living up to their principles. Democrats... when they do.)
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To: Wuli

Federal spending usually takes 1 1/2 years to hit the economy in a meaningful way. When Biden took office very little of the “original” stimulus had “hit”. Yes, the second package was unnecessary. The third package is just hitting now—and over the summer—so it will drive inflation this fall going into the election.

In any event, we can disagree on “who is responsible for today” but this isn’t a “today” problem. This has been going on for decades.

Foreign aid is not really making that much of a difference. And MOST of that comes right back into the MIC.


26 posted on 05/05/2024 9:48:26 AM PDT by Vermont Lt (Don’t vote for anyone over 70 years old. Get rid of the geriatric politicians.)
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To: Kaiser8408a

There’s an old saying, “That which cannot continue forever will therefore by definition stop”. This WILL stop when we collapse, but the lead-up and the finale will be a horror no one wants to live through.


27 posted on 05/05/2024 9:53:37 AM PDT by GrumpyOldGuy
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To: Wuli
$200 billion is miniscule? This after we told $3.5 billionb for border wall was too much.

You act like the money we're spending is monopoly money. It's not. It's call contributing to a crush national debt.

And, every penny would be used in this country on OUR PROBLEMS AND OUR CITIZENS.

Before we waste another penny on Ukraine or some other venture to enrich our political class, we can drag you through the streets by your testicles.

28 posted on 05/05/2024 9:53:46 AM PDT by Kazan
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To: Kaiser8408a

America is unlikely to elect people who would “stop” any of this.


29 posted on 05/05/2024 10:03:12 AM PDT by SaxxonWoods (Are you ready for Black Lives MAGA? It's coming.)
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To: Kaiser8408a

$60 trillion of budget on the books with at least $210 trillion in future, unfunded liabilities, as well as the $145 trillion that Dr. Mark Skidmore has found missing in HUD and military spending that is now hidden away behind national security brings us some $300 trillion in debt.

Think we can pay that back?

Dr. Mark Skidmore and the missing $145 trillion.
https://www.youtube.com/watch?v=kxJ0fgqX8b0&ab_channel=ArcadiaEconomics


30 posted on 05/05/2024 12:22:45 PM PDT by Tom Tetroxide
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To: Kaiser8408a

Another confusing article from the dopes at Confounded Interest.

Congress creates the US National Debt, not the Fed.

Congress authorizes and orders the amount of debt to be issued, and the Treasury Department funds it by selling Bonds.

Treasuries are sold at weekly auctions. Interest rates are determined by what Primary Dealers are willing to pay. They aren’t set by the Fed, the Treasury, or anybody else.

If we want to reduce the size of the US national debt and the amount of money paid out in interest we have to figure out how to get Congress to quit spending. No one has figured out how to accomplish this.


31 posted on 05/05/2024 1:56:44 PM PDT by Pelham (President Eisenhower. Operation Wetback 1953-54)
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To: Kaiser8408a

TAXATIOIN without representation
INFLATION without representation
INVASION without representation
DEBT NATION without representation


32 posted on 05/05/2024 5:04:32 PM PDT by PGalt
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To: Kazan

Yes. $200 billion over three years is a paltry pittance over the extra trillions per year in Biden’s extra domestic programs. The Ukraine aid is a distraction from the real financial culprit in Biden’s domestic spending.


33 posted on 05/06/2024 6:03:21 AM PDT by Wuli ( )
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