The U.S. National Debt Just Hit The 23 Trillion Dollar Mark As We Continue To Steamroll Toward Financial Oblivion
Published: November 14, 2019
Source: Michael Snyder @ The Economic Collapse
This week, the U.S. national debt reached the 23 trillion dollar mark for the first time ever. There was no fanfare, there were no politicians giving speeches about fiscal responsibility, and there has been very little national outrage. We have simply come to accept that it is “normal” for our national debt to grow at an exponential rate, but the truth is that we are literally committing national suicide. Given enough time, there is no doubt that this colossal mountain of debt will kill our Republic, and yet fiscal responsibility is not even a major national issue any longer. Everyone seems to be okay with the fact that we are stealing more than 100 million dollars every single hour of every single day from future generations of Americans and destroying the bright future that they were supposed to have. What we are doing to our children and our grandchildren is beyond criminal, and yet very few of us seem to care.
At this point things are so bad that even Fed Chair Jerome Powell is warning Congress that the national debt is a major problem…
When a major downturn hits the U.S. economy, the federal government is not going to be able to do much because we are already spending money at emergency levels.Federal Reserve Chairman Jerome Powell warned lawmakers Wednesday that the ballooning federal debt could hamper Congress’ ability to support the economy in a downturn, urging them to put the budget “on a sustainable path.”
Powell suggested such fiscal aid could be vital after the Fed has cut its benchmark interest rate three times this year, leaving the central bank less room to lower rates further in case of a recession.
Of course Powell shouldn’t exactly be criticizing Congress, because the Fed has already been using up all of their ammunition too.
So when the next recession officially arrives, the amount of intervention that will be possible will be very limited.
Since Barack Obama’s inauguration, we have been adding an average of more than a trillion dollars to the national debt every year. That is utter insanity, but it has helped the economy in the short-term.
When the federal government borrows money that it does not have and spends it into the economy, that boosts economic activity. But at the same time it makes our long-term financial problems even worse.
If we were to go back and remove from the economy the 12.4 trillion dollars that the federal government added to our national debt since Obama’s inauguration, we would be in the deepest economic depression in American history right now.
So all of that reckless spending has kept us from economic disaster, but it has set the stage for something even worse when this bubble finally bursts.
In October, the federal government’s budget deficit for the month was $134.5 billion. That was 34 percent higher than for the same month a year earlier.
I can’t even begin to describe how foolish this is. The extreme negligence being committed by our politicians in Washington is mind blowing.
And this is just the beginning of our problems. As our population ages, Social Security, Medicare and other entitlement programs are going to become rapidly more oppressive…
So where are we going to get the money that we need to support those programs?This is only going to get worse. According to Census Bureau projections, by 2030 each 100 working-age Americans will be supporting 35 retirees, and this could rise to 42 by 2060. Another way to think of this is to calculate the number of retirees each worker must support. In 1946, the burden of one retiree was shared between 42 workers. Today, according to the SSA, roughly three workers cover each retiree’s Social Security and Medicare benefits. By 2030, however, there will be only two workers supporting each retiree.
Of course we aren’t actually going to make it to 2060. Our entire system will implode long before then.
Consumers have also been on a tremendous debt binge in recent years, and we just learned that total U.S. household debt is about to cross the 14 trillion dollar mark…
We are in the final stages of the biggest debt bubble in the history of the world, and most of us realize that this chapter in our history is going to end very badly.Americans increased their borrowing for the 21st straight quarter as more households took out loans to buy homes or refinance existing mortgages, according to a report released today from the Federal Reserve Bank of New York.
Total U.S. household debt rose $92 billion, or 0.7%, to $13.95 trillion in the third quarter, the New York Fed’s quarterly household credit and debt report showed.
So why do we just keep making things worse?
Of course it isn’t just the United States that is drowning in debt. According to the IMF, total global debt has now reached the 188 trillion dollar mark…
Most people don’t understand that the global financial system has literally been designed to create as much debt as possible. But once you grasp this, it shouldn’t actually be a surprise that we are now 188 trillion dollars in debt. The system is simply doing what it was intended to do. For much more on this, please see my previous article entitled “Global Debt Is Up To $188,000,000,000,000 – This Is Officially The Biggest Debt Bubble The World Has Ever Seen”.The global debt crisis has reached epic and historical proportions. It’s now $188 trillion, which is more than double the entire economic output of the entire planet.
The global debt load has surged to a new record of around 230% of the world’s output, IMF chief Kristalina Georgieva said according to a report by the Daily Mail. The entire globe’s economic stability is hanging by a thread, and this news makes that thread appear just a little thinner.
For decades, we have been ignoring the future consequences of running up so much debt, but at some point time is going to run out.
In a recent article, Ron Paul put it this way…
As usual, Ron Paul is right on the mark.Even though the federal deficit is already over one trillion dollars (and growing), President Trump and Congress have no interest in cutting spending, especially in an election year. Should he win reelection, President Trump is unlikely to reverse course and champion fiscal restraint. Instead, he will likely take his victory as a sign that the people support big federal budgets and huge deficits. None of the leading Democratic candidates are even pretending to care about the deficit. Instead they are proposing increasing spending by trillions on new government programs.
Joseph Zidle, a strategist with the Blackstone investment firm, has called the government — or “sovereign” — debt bubble the “mother of all bubbles.” When the sovereign debt bubble inevitably busts, it will cause a meltdown bigger than the 2008 crash.
And actually “a meltdown bigger than the 2008 crash” would be a best case scenario.
Ultimately, it is extremely doubtful that we are going to be able to survive what is going to happen to us once this bubble completely bursts.
The Republic that previous generations of Americans sacrificed so much to build is being systematically destroyed, and it is our own greed that is doing it.
About the Author: I am a voice crying out for change in a society that generally seems content to stay asleep. My name is Michael Snyder and I am the publisher of The Economic Collapse Blog, End Of The American Dream and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe. I have written four books that are available on Amazon.com including The Beginning Of The End, Get Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned) By purchasing those books you help to support my work. I always freely and happily allow others to republish my articles on their own websites, but due to government regulations I need those that republish my articles to include this “About the Author” section with each article. In order to comply with those government regulations, I need to tell you that the controversial opinions in this article are mine alone and do not necessarily reflect the views of the websites where my work is republished. This article may contain opinions on political matters, but it is not intended to promote the candidacy of any particular political candidate. The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial or health decisions. Those responding to this article by making comments are solely responsible for their viewpoints, and those viewpoints do not necessarily represent the viewpoints of Michael Snyder or the operators of the websites where my work is republished. I encourage you to follow me on social media on Facebook and Twitter, and any way that you can share these articles with others is a great help.
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