Posted on 06/06/2024 6:47:53 AM PDT by delta7
Government spending has consequences. The US national debt has surpassed $34.6 trillion at the time of this writing and continues to grow every minute. America has never been in a deeper deficit. The Committee for a Responsible Federal Budget (CRFB) has reported that America was forced to pay $514 billion in the first seven months of FY2024 on interest costs alone.
This means that America paid more in servicing its debt than on any other program besides Social Security ($837 billion), which is a separate problem entirely. To put it into perspective, the US shelled out $498 billion on national defense, funding 2.5 wars, during this time. Around $465 billion was spent on Medicare, with an additional $355 billion spend on Medicaid, and neither surpassed the amount paid on simply holding onto debt.
What can be done when the government refuses to curtail spending? Biden audaciously labeled one of the largest spending packages in the nation’s history the “Inflation Reduction Act,” and expects the people to believe that it has not greatly contributed to the rising costs of goods and services.
Every week, Biden signs a new check to Ukraine or a climate change agenda, but no one can stop him from draining the Treasury. Even the Federal Reserve is utterly helpless and can do nothing besides sit back and watch as America spirals down.
Imploding this situation is China’s rightful refusal to purchase US debt. Other central banks see how careless US politicians have become with their spending and question if they ever intend to pay off their growing debt.
How could they at this point? No one in Washington has a clue on what to do. Instead, they will continue spending with no concern for the long-term consequences that are inevitable.
“this mathematically cannot continue”
I would be concerned—but our leading intellectuals assure us that “math is racist” so we have nothing to worry about...
;-)
Just looked, it's now 34, 799, 250,370,967 and my number is wrong before I could even finish typing.
Well...our pooping pervert of a “president” is a perfect metaphor
As goes college welfare (student loans), goes the federal loans it takes out for itself to operate.
As we continue to roll over our debt from low interest to “normalized” interest rates, we will continue to borrow MORE money just to service the debt. Without significant GDP growth, this is unsustainable. As they say, “Trees don’t grow to the sky.”
Inflation is theft and a hidden tax.
But biden said he would not raise taxes on anyone making $400K or less. Turns out he raised taxes on everyone who buys food and fuel.
Not only that, but somehow the collusion between banksters, politicians, university-taught "economists" and the eneMedia hindered us, the public, to think that a FED target of 2% inflation is normal.
No, that is not normal, other than being a cover for generational wealth stealing.
My 20 something kids were big on biden/harris during the 2020 steal. I warned them about the coming price inflation due to their policies. They rolled their eyes at me. In 2023, they started complaining about how much food and fuel costs while their pay has not gone up.
They are learning.
US federal debt plus the states and local debt over $200 Trillion.
https://freerepublic.com/focus/news/4221193/posts
Similar on my side, except they are 30 yo’s.
They can no longer be Told. They must be shown.
Spend and spend, tax and tax, we damned fools don’t know the difference!
Term limits is the answer:
2 FOUR-year terms for senators.
4 two-year terms for Congresscritters.
2 SIX-year terms for president. (Hopefully no more Obamas, Bidens or Lyndon Birds.)
The president doesn’t get enough time to implement his agenda before he’s forced to begin campaigning.
The long-term consequences are often referred to, but are never really clearly explained. And that's one reason I think that people are not motivated by the growing debt. No one really knows what or when the consequences will hit.
Here's is my uneducated guess as to what happens.
As the debt continues to grow, the government will have to pay more interest on every T-Bill it sells. Eventually, investors will not have the money to invest, even at the high rates being paid, and they will quit loaning to the government. In order to avoid default, the treasury will begin using accounting entries to create money (the new version of printing money, which can't actually be done fast enough to feed the demand). With a massive influx into the money supply, inflation becomes unlike we've ever seen.
Will it happen in ten years? Probably not, but maybe within twenty. I might be alive to see it, but I sure hope not. In any case, I hope to have a plan to protect what few assets I have. But that might mean relocating.
If by some miracle Trump makes it into the WH, I’m sure Deep State’s plan is to leave Trump a smoking, wrecked hulk for a ship of state.
Trump is going to have to do some painful things to right it.
I hope we have the will to follow where he leads.
How it ends - see Argentina.
2 Billion dollars a day.
$2,000,000,000. That’s how much INTEREST the US pays on our National Debt each day.
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