Posted on 04/14/2024 8:35:35 AM PDT by SeekAndFind
An equation to understand the current confusion: National debt = issuance of Treasury bonds = printing dollars (Q.E.), and increasing the supply of money = federal spending. Therefore, national debt = federal spending. It’s the principle of equivalency.
All those who work for a living, and who make their own way, pay this debt. The recipients of this spending, like welfare and entitlement beneficiaries and federal subsidies like E.V. credits, ride on the effort of those who work. Corporations don’t pay debt; they increase the price of their products and pass it along to buyers. Bottom line: Every citizen bears the burden of federal spending.
Here is another simple equation: Federal spending in excess of tax revenue = debt. So our government’s inability to live within its means, as we citizens do, creates a debt burden on us. Did any of us agree go into debt personally?
Fact is, we are being placed into debt against our will, by bureaucrats who are paid through our taxes and politicians whom we elected. This is insane.
Some would suggest that we tax the rich. How did taxing the rich out of business work out for Hitler, Stalin, and Mao? Fact is, we already do: over 50% of all tax revenue comes from the top 5% of earners. The tax rate is already very progressive — especially when one considers that the bottom 50% of wage-earners pay no taxes, but receive federal benefits in excess of their tax. Like debt, tax rates are self-limiting. As tax rates go up, tax revenue declines because the source of revenue, private businesses and jobs, declines.
(Excerpt) Read more at americanthinker.com ...
Interest on the federal debt is now so immense that it's consuming 40% of all personal income taxes. The largest source of revenue for the federal government is increasingly being devoted to just servicing the debt, not even paying it down.
The problem is getting worse daily . . .
US national debt tracker for April 12, 2024: See what American taxpayers (you) owe in real time
Thanks to a combination of high inflation, rising interest rates and unrelenting growth in the national debt, interest payments are expected to triple from nearly $475 billion in fiscal year 2022 to a stunning $1.4 trillion in 2032.
Given that the left refuses to cut spending on wasteful communist-socialist pogroms and too many politicians overall refuse to cut spending on pork . . .
Some time within the time-span of mid 2027 on up to mid 2029, all of personal income taxes will be paying all of the interest on the national debt. None of personal income taxes, will be paying down the national debt.
A day or reckoning in real estate prices, along with most other things, has to be at hand. Surely it is? If you want to realize a gain from this stupidity you better sell fast and not by. It is all timing and most are not successful at it.
People made a lot of very bad decisions because of and since covid. biden just made them all worse. Eventually they will have to pay for them with a realized loss. Trump's misguided summer of free money and no work was the spark that kindled the fire. That big hole in production led to shortages and the start of rampant inflation. biden added insult to injury by extending it all and then doubled down on it time after time.
No economy can sustain or even survive such a loss of productivity and unbridled spending and printing of money as we have in the last four years.
The day after tomorrow is Tax Freedom Day.
“Interest on the federal debt is now so immense that it’s consuming 40% of all personal income taxes ... The problem is getting worse daily”
I think you’re correct. Not sure what our politicians have in mind for us.
The Final Solution?
Zoos will become great sources of protein.
If your outgo exceeds your income, your upkeep will be your downfall.
People think housing prices are too high. No! The value of the dollar has greatly gone down. As the spending value of the dollar decreases, investors put the money into housing in order to retain value. Where else can you preserve your earned wealth?
I have cash in banks and credit unions. I've watched as the dollar eroded in value due to idiotic government overspending causing inflation that exceeded any earned interest from the banked savings. So I shifted cash into real estate that will go to my children when I pass. Real estate prices will continue to increase, despite small decrease blips, and will not "crash" (short of destruction of our nation).
More and more Americans don’t see themselves paying this debt, and haven’t created a next generation to bear the brunt of it. The Thirdworlders trafficked here as pliable labor and desperate consumers will bear much of the burden. Many Western whites are opting out of future generations’ participation in this.
I would not trust Zillow for true estimates of housing values. Homes will only sell for what buyers are willing to pay. Zillow estimates fluctuate often without regard to value of comparable sales in a region, because some people exaggerate input to Zillow.
For instance, a 3-bdrm split-level home with double-car garages and big yard in a cul-de-sac a couple blocks away went on the market a couple weeks ago, asking $1.1M. Another home a few houses away around the corner from it, is a rancher 1-story home with 2-bdrms and a small single-car garage and small hilly yard went on the market last week, asking $1.08M. Zillow has them posted with the same value, no reflection of reality. The 1st split-level home now is posted as pending after a week on the market. The 2nd rancher home will probably sit on the market for a long time until the price is dropped to reflected its lower true value.
Sounds like confirmation bias to me. Opinions, we all have them. Good luck.
If you like this government, keep funding it (buying government bonds, T-bills). But if you don’t support the bureaucratic Deep State or the woke Biden regime... why keep supporting it financially? Just something to think about.
And then there's the people who don't vote at all/don't care, who just expect "their check."
It’s true that wealth can be stored in real property. But not free of charge. Various gov’ts. want a [likely significantly increasing] portion of your stored wealth in the form of yearly property taxes. And if you sell at a profit, they want more of your stored wealth.
"They" (meaning government actors) call it profit and demand a cut. The "profit" barely keeps up with inflation, if you're lucky. This is the lie of gov't, that it is profit. Gov't causes inflation that erodes the value of the dollar so it won't buy the same amount of goods over time, and takes a cut of "profits" so that the future increased amount of dollars can't buy the same amount of goods later on. Tax it when you earn it, tax it when you earn interest, tax it when you sell it, and tax it when you pass it on to your adult kids. (California now hiking property taxes on transferred property to adult kids). So yeah, not free of charge.
“Too many simply vote D/R or for some alternative and ...”
True. A Democracy or Republic or whatever we are isn’t a perfect system.
Hopefully this time around people will vote for the candidates’ positions on the issues and track records and not on how much they like or dislike them as individuals.
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