The U.S. National Debt Just Hit The 23 Trillion Dollar Mark As We Continue To Steamroll Toward Financial Oblivion
The U.S. National Debt Just Hit The 23 Trillion Dollar Mark As We Continue To Steamroll Toward Financial Oblivion by Michael Snyder for The Economic Collapse Blog
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…
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.
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.
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…
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.
So where are we going to get the money that we need to support those programs?
Of course we aren’t actually going to make it to 2060. Our entire system will implode long before then.