National Debt Balloons To $30 Trillion

The Daily Caller ^ | 12/1/2022 | Jacob Yusufov

[Sparky1776]

The U.S. national debt surpassed $30 trillion for the first time ever in the nation’s history Tuesday. The data was published Tuesday by the Treasury Department’s FiscalData website. The national debt is divided between public debt and intragovernmental debt, respectively representing approximately $23.5 trillion and approximately $6.5 trillion, according to the data.

[Sparky1776]

$90,000 per citizen.

[Sparky1776]

https://usdebtclock.org/

[Tell It Right]

That’s more debt than even my ex can run up. LOL

[servantboy777]

>>That’s more debt than even my ex can run up. LOL<<
Now that’s funny right there!

[Leaning Right]

Congress will not cut back on spending. And they will not default on the debt. That leaves them only one way out: Allow for massive inflation, then pay back the debt with worthless dollars.

That’s gonna happen. Not today, and probably not tomorrow. But it’s gonna happen.

[circlecity]

“surpassed $30 trillion for the first time ever in the nation’s history Tuesday”

Every increase in the debt sets a new record.

[Harpotoo]

You can confirm the $30T here:

https://www.usdebtclock.org/

[Sparky1776]

Yep, it happened on Ground Hog Day too, not sure how that’s going to work out, maybe it just stays like that forever now ?

[nathanbedford]

Simultaneous with the announcement that fourth-quarter GDP was pegged at 6.9% it was also announced that the national debt has officially just exceeded $30 trillion.

It is axiomatic that government spending has exceeded government income or we would not be $30 trillion in debt. Inferentially, government spending has exceeded GDP growth over these recent decades to an extent that has produced $30 trillion in acknowledged debt. "Inferentially" because one can infer, albeit unrealistically, that taxes could or would have been prudently assessed to balance the budget if more GDP had been available for that purpose.

$30 trillion in debt (not counting $100 trillion to $300 unscheduled liabilities) is a relatively recent phenomenon in terms of degree. Yes the United States faced staggering national debt after world war II yet entered a decades long error of amazing prosperity. Conventionally, we assess the seriousness of our national debt as a percentage of GDP.

Conventional wisdom tells us that a tipping point of 77% of debt to GDP is crucial. Our debt is percentage of GDP now exceeds 126%.

Obviously a debt 1 1/4 the size of the value of the goods and services produced cannot be paid off in one year but must be rolled over. That means that new debt must be undertaken to pay off old debt and that means that the interest rates for the new debt must not run up too high or the whole system will break down. Enter inflation.

Heretofore inflation in America has been under control (at least by modern rather than traditional standards of reckoning) because America has been the world's largest economy, the world's reserve currency, a superpower, energy rich, internally stable, under the rule of law, with open markets and growing. One need not review every element to immediately react and say, Biden has impaired everyone of these vital elements! Anyway, by 1970s standard of reckoning in real dollars, our present rate of inflation is approximately 17%!

So our government has run up tens of trillions of dollars in debt in the last two decades and this was done by the simple expedient of the Federal Reserve bank printing money. The money is printed by keyboard strike, preferred private elitist banks sell bonds to the Federal Reserve at a guaranteed profit and the Federal Reserve delivers printed money in the form of cipher notations to these banks. The elite are enriched, property values and paper assets soar, the middle class is left behind and a bubble is created.

By definition, bubbles burst. To resort to another aphorism, that which cannot go on will not go on. The only question that remains for us is when will this extraordinary bubble of asset values burst? Put another way, when will the ability of the Fed to sell bonds to real purchasers, rather than to itself, come to a crashing halt as the market decides that the risk of repayment at 126% of GDP is simply too high. Either the bonds will not sell or the government will have to pay staggeringly increased interest rates. One, either one, can trigger the other.

Indeed, any black Swan that strikes the economy can also act as a trigger and burst our bubble. Black swans by definition are unanticipated because they are impossible to predict but one prediction is certain, black swans are coming.

I have been saying for some time that very smart people have gone broke being right at the wrong time. Finally, it is becoming increasingly clear that the time is drawing nearer and nearer for the inevitable to happen, for the bubble to burst, and soon.

Is this time different? I believe it is, I believe the Fed is out of dry powder, the private sector is deeply in debt, the state municipal governments are deeply in debt, there is scarcely any dry powder anywhere and the inevitable retrenchment must therefore be terribly painful and the middle class will pay a terrible price.

Assuming the Republicans come into power in January 2023, the question is whether the bubble will burst before they take over or during their tenure? Either way the Republican Party must be very careful and take a look at how Franklin Roosevelt demagogued the Great Depression into one party rule for 20 years. He did it by passing out subsidies and surviving the world war. Other nations were not so lucky. History tells us that the sequela for economic crisis is often the man on horseback. Beware the demagogue, beware the strongman.

The Democrats have shown that they are not prepared to let any crisis go to waste, corona virus included, a great terrible depression will be just what they need to unleash the tyrant residing like a virus within every one of them. The job of the Republicans will be to get the public to eat spinach while the Democrats are promising dessert. The Democrats have the easier sale. If we fail, we lose the Republic.

[kosciusko51]

Every time I look at that clock, I realize that the Federal debts will never be repaid.

[fhayek]

I monitor the clock on a regular basis. I projected that it would pass $30 trillion around February 9th (which, coincidently is also my anniversary (ahem..). Anyway, it took a $850 billion jump just over the past few days. I was hoping to see it tick over.

No one seems to care about the debt anymore. I mean, no politicians talk about it. It's like they think that it can just go on forever. I am pretty sure it can't go on forever.

[cableguymn]

except that I don’t think they will ever pay back the debt. inflation? yes, it’s already here.

Pay the bills? probably not.

[Starboard]

$90,000 per citizen.

************

$240,000 PER TAX PAYER.

[ActresponsiblyinVA]

Politicians worry about the impact of climate change that may or may not be true while running up debt that will destroy this country.

[Starboard]

Congress will not cut back on spending.

*************

This is all they do: SPEND other peoples’ money.

Its their “solution” to everything.

[TexasFreeper2009]

way to go Brandon!

[DoodleDawg]

way to go Brandon!

And Trump. And Obama. And Bush. And Clinton. And...

Neither party or their presidents have been interested in controlling spending.

[Sparky1776]

That’s true..........

......but Biden is the constant. He has been there since 1973 when the Debt / GDP ratio was 32% the lowest post WWII. Up until his time there never was a government shutdown.

I think the Debt per citizen was under $2,000 when arrived, now it’s over $90,000. Joe was the 18th longest serving Senator, ever. He left as #4 in seniority, to become #2 as VP, then #1 as president. He has been in the room the whole time while the others you mentioned have not.

Brandon has a lot to do with this and no plans to correct it.

[Harpotoo]

This is from April last year you can only imagine what it is now.

US national debt closer to $123 trillion due to unfunded liabilities...

[Jonny7797]

Wake me when it gets to 90 trillion.