Tag: national debt

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$27 Trillion National Debt and Counting, How It Gets Paid and Who Pays It

The debt of the US government recently crossed $27 trillion. Additionally, there are talks for another $2 trillion of stimulus (which the stock market is loving by the way). So, if passed, that would put the US national debt at around $29 trillion!

We should note that the US National Debt was about $20 trillion at this time in 2016. So, the debt was doubled to $20 trillion from $10 trillion (2008-2016) during President Obama’s two terms and looks to be on pace to double again over the subsequent two terms based on the increase thus far in President Trump’s first term.

A $29 trillion debt represents almost $90,000 per US citizen. That means a household with four people has about $360,000 as their share of the national debt in addition to their own private debt and their state and local government debt. Consider that total US household debt is about $14 trillion so that’s another $42,000 per citizen, or $170,000 for that same household of four on average.

Let’s consider what this really means. Continue reading “$27 Trillion National Debt and Counting, How It Gets Paid and Who Pays It”

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The True National Budget Deficit

We recently found out that the U.S. government’s official estimate of the national budget deficit for fiscal year that ended September 30th was $779 billion. Yet, when I look at the change in the national debt for the same period I see an increase of $1.25 trillion. 

So if the official deficit was $779 billion, how did the national debt grow by over $1.2 trillion? Sounds like questionable accounting practices to me. Continue reading “The True National Budget Deficit”

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“Gold is the money of kings…but debt is the money of slaves.” U.S. National Debt Tops $20 Trillion.

 

“Gold is the money of kings, silver is the money of gentlemen, barter is the money of peasants – but debt is the money of slaves.”

– Norm Franz, Money & Wealth in the New Millennium

“The consequences arising from the continual accumulation of public debts in other countries ought to admonish us to be careful to prevent their growth in our own.”

– John Adams, First Annual Address to Congress

 Executive Summary

  • U.S. national debt tops $20 trillion for first time after debt ceiling is suspended again.
  • Interest on the national debt is half a trillion dollars even with historically low interest rates.
  • The national debt is a burden on ourselves, children and grandchildren essentially enslaving future generations as we put them on the hook for our profligacy.
  • The national debt also acts like an anchor dragging on economic growth.
  • Potential solutions (good and bad) include reduced spending, higher taxes, money printing or outright default.

Continue reading ““Gold is the money of kings…but debt is the money of slaves.” U.S. National Debt Tops $20 Trillion.”