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”

“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.”