Skip to comments.The federal deficit is now out of control
Posted on 09/26/2022 6:33:36 PM PDT by anthropocene_x
The United States is hemorrhaging debt. The principal cause of consumer price inflation running above 8% on an annual basis is too much federal government spending. Before the pandemic, federal debt held by the public was already on an unsustainable trajectory. It is largely caused by overly generous entitlements and a shrinking working population to pay for benefits for an increasing number of elderly citizens.
In his March State of the Union address, Biden claimed he would be "the only president ever to cut the deficit by more than $1 trillion in a single year." That's laugh-out-loud material. In reality, the policies that reduced the deficit were set in stone; Biden did nothing positive in that regard. Moreover, what Biden won't acknowledge is that his free-spending policies will contribute importantly to ever-increasing deficits. The CBO projects that federal deficits over the period 2022-2052 will average 7.3% of GDP. That's double the average of the past 50 years. The CBO explains that interest payments on the federal deficit are the most significant factor in out-of-control spending.
(Excerpt) Read more at washingtonexaminer.com ...
So is the Money Supply from printing $$$$$$$$$
Bond markets puked. What are bonds? Debt.
The world is in the largest financial bubble in history.
My whole adult life I have been saying this.
Take a look at this chart:
The plan is to hyper inflate our way out of this. Who cares if it destroys everybody’s savings and quality of life?
You are correct, and the fallout will be horrendous beyond comprehension when this bubble explodes.
Like never before seen.
Yep. So we'll be like Argentina.
When was it ever in control?
Or Zimbabwe. Get ready for some $100,000,000,000,000 notes with Brandon’s drooling face on em.
They can print but then it adds to national debt.
National debt has serciving cost (interest paid).
When interest rates go on 10 year bonds from 2% (last year’s rate) to 4% (current rate) the cost for issuing bonds doubles.
But the debt becomes worthless if the currency is worthless within the 10 years. Debt is just delayed payments for money printing.
Yes. Andrew Jackson completly retired the Debt in 1835. A great American.
If the currency becomes worthless, you won’t be able to buy simple necessities with your wages. Don’t be under the delusion that worthless currency is no big deal. Read about Germany during Weimar.
I've long suspected that this is the real reason why there is such a unified push for open borders in government and industry in the U.S. We need a massive influx of people whose expectations for their standard of living are so low that they won't mind paying off the $30+ trillion of debt that has accumulated before they arrived here.
Something else to consider here is that even with rising interest rates, the yield on a 1-year Treasury bill is still less than half of the reported rate of inflation in the U.S. Someone is taking a bath on this, and it isn't the U.S. taxpayer.
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