Tag Archives: National Debt

Distressed Nation: Each American Would Owe $700,000 To Eliminate Worsening Debt Situation, by Tyler Durden

Got an extra $700,000 laying around to pay your share of the national debt and unfunded liabilities? No? Well somebody’s got to pay it. From Tyler Durden at zerohedge.com:

Truth In Accounting (TIA), a 501(c)(3) – focused on government financial information, published a new report that suggests the federal government’s overall financial conditions worsened by $4.5 trillion in 2018. The report also calculates the actual national debt on a per taxpayer basis.

With assets of $3.84 trillion, the federal government’s unfunded obligations and debt total $108.94 trillion, which contributed to a $105 trillion debt burden.

“Our elected officials have made repeated financial decisions that have left the federal government with a debt burden of $105 trillion, including unfunded Social Security and Medicare promises. That equates to a $696,000 burden for every federal taxpayer,” TIA states.

TIA rated the federal federal government with an “F” for its financial outlook and worsening fiscal situation that could trigger a crisis in the not too distant future.

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As the Madness Turns, by MN Gordon

Government debt is growing much faster than the economy, which can only lead to disaster. From MN Gordon at economicprism.com:

The first quarter of 2019 is over and done.  But before we say good riddance.  Some reflection is in order.  To this we offer two discrete metrics.  Gross domestic product and government debt.

GDP for the quarter, as estimated by the March 29 update to the New York Fed’s GDP Nowcast, grew at an annualized rate of 1.3 percent.  For perspective, annualized GDP growth of 1.3 percent is akin to getting a 1.3 percent annual raise.  Ask any working stiff, and they’ll tell you…a 1.3 percent raise is effectively nothing.

By comparison, the U.S. budget deficit for fiscal year 2019 is estimated to hit roughly $1.1 trillion.  This amounts to an approximate 5 percent increase of the current $22.2 trillionnational debt.  In other words, government debt is increasing about 3.85 times faster than nominal GDP, which is about $21 trillion.

These two metrics offer a rough perspective on the state of the economy.  Deficit spending is grossly outpacing economic growth.  Heavy treatments of fiscal stimulus are being applied.  Yet the economy’s practically running in place.  In short, the state of the economy is not well.

And as the economy slows and then slips into reverse later this year, and as Washington then applies more fiscal stimulus, these two metrics will move even further towards madness.  What’s more, the Fed is gearing up to promote this greater state of madness in any and every way possible…

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US government’s net worth is now NEGATIVE $75 TRILLION, by Simon Black

One guess as to who is on the hook for that negative $75 trillion. From Simon Black at sovereignman.com:

Usually around the middle of February each year, the US Treasury Department releases an annual report of the federal government’s financial condition.

It’s called the Financial Report of the US Government… and it looks a lot like an annual report that you might see filed by a big company like Apple or Facebook.

Except that, unlike Apple and Facebook, the US government’s annual report is absolutely gruesome.

This year’s report is no exception, save for one humorous anecdote: they -just- released it. In other words, they’re a month and a half LATE (given that the report is typically released in mid-February).

I actually CALLED the Treasury Department myself in early March, asking when they would publish the report.

The bewildered individual on the other end of the line said that he had no earthly idea, given that the government had been shut down for so long earlier this year.

Anyhow, if you want to see the report for yourself, you can download it here.

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US Budget Deficit Hits A Record $234 Billion As Interest On Debt Soars, by Tyler Durden

February set a new all time record for a monthly budget deficit, $234 billion. The record will probably not stand for long. From Tyler Durden at zerohedge.com:

Another month, another frightening jump in the US budget deficit. And this time it was a record.

According to the latest Treasury data, the US budget surplus in February – traditionally the worst month of the year due to tax refunds – was a whopping $234 billion, missing the $227 billion deficit expected, and well worse than the $214 billion deficit recorded last February. And even though there may have been one-time tax refund and government shutdown factors at play, the February deficit was also the biggest budget deficit on record.

For March, receipts rose 7.5% y/y to $167.3BN while outlays rose 8.2% to $401.2BN in Feb. As a result, the budget deficit for the first five months of the fiscal year, widened to $544 billion, a whopping 39% higher than the $391 billion reported for the same period last year, largely the result of the revenue hit from Trump’s tax cuts and the increase in government spending. The deficit was the result of a modest drop in fiscal YTD receipts to $1.278 trillion, while spending jumped 9% to $1.823 trillion.

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The Blind Leading the Deaf and Dumb, by James Howard Kunstler

Are the tables about to be turned on both the Russia collusion story and financial markets? From James Howard Kunstler at kunstler.com:

You had to wonder why it took Nancy Pelosi so long to figure out that maybe impeachment was not the big rock-candy mountain that, for “the resistance,” marked the gateway to a Trump-free nirvana. It became obvious this week, through the release of the Bruce Ohr and Lisa Page transcripts, that RussiaGate was birthed entirely by persons in the employ of Hillary Clintion, with then CIA Director John Brennan as midwife, and the DOJ / FBI avidly assisting — all of them fully aware that the predicate was false. What’s more, the evidence timeline makes it clear that Democratic Party leadership, including Nancy Pelosi, knew it was false. Hence, the pained smile she’s been wearing these many months.

In the event of an impeachment proceeding in the House, all that would be revealed, especially if it got as far as a trial in the US Senate, where the defense is allowed to mount a case under rules of evidence. Imagine the howls of embarrassment on late-night TV when even ex-comedian Stephen Colbert would have to admit that he was gulled into acting as a shill for a seditious con.

I suppose Ms. Pelosi also made the calculation that any impeachment ginned up by the likes of Jerrold Nadler and Maxine Waters would be superseded by a slew of actual indictments among the above-mentioned former law enforcement officialdom, including perhaps former Attorney General Loretta Lynch and persons in the Obama White House. You might even include the enigmatic Robert Mueller, who appears to be liable for the destruction of evidence in his own inquiry, as well as malicious prosecution.

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Pity the Nation: War Spending Is Bankrupting America, by John W. Whitehead

The warfare state is certainly helping to bankrupt America, but John Whitehead goes too easy on the welfare state. From Whitehead at rutherford.org:

“Pity the nation whose people are sheep
And whose shepherds mislead them
Pity the nation whose leaders are liars
Whose sages are silenced
And whose bigots haunt the airwaves
Pity the nation that raises not its voice
Except to praise conquerors
And acclaim the bully as hero
And aims to rule the world
By force and by torture…
Pity the nation oh pity the people
who allow their rights to erode
and their freedoms to be washed away…”
~ Lawrence Ferlinghetti, poet

War spending is bankrupting America.

Our nation is being preyed upon by a military industrial complex that is propped up by war profiteers, corrupt politicians and foreign governments.

America has so much to offer – creativity, ingenuity, vast natural resources, a rich heritage, a beautifully diverse populace, a freedom foundation unrivaled anywhere in the world, and opportunities galore – and yet our birthright is being sold out from under us so that power-hungry politicians, greedy military contractors, and bloodthirsty war hawks can make a hefty profit at our expense.

Don’t be fooled into thinking that your hard-earned tax dollars are being used for national security and urgent military needs.

It’s all a ruse.

You know what happens to tax dollars that are left over at the end of the government’s fiscal year? Government agencies – including the Department of Defense – go on a “use it or lose it” spending spree so they can justify asking for money in the next fiscal year.

We’re not talking chump change, either.

We’re talking $97 billion worth of wasteful spending.

According to an investigative report by Open the Government, among the items purchased during the last month of the fiscal year when government agencies go all out to get rid of these “use it or lose it” funds: Wexford Leather club chair ($9,241), china tableware ($53,004), alcohol ($308,994), golf carts ($673,471), musical equipment including pianos, tubas, and trombones ($1.7 million), lobster tail and crab ($4.6 million), iPhones and iPads ($7.7 million), and workout and recreation equipment ($9.8 million).

So much for draining the swamp.

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As budget deficit balloons, few in Washington seem to care, by Andrew Taylor

Everybody has a plan to eliminate the budget deficit in ten to fifteen years, but the debt and interest payments are ballooning now, and the economy is supposedly doing well. From Andrew  Taylor at apnews.com:

The federal budget deficit is ballooning on President Donald Trump’s watch and few in Washington seem to care.

And even if they did, the political dynamics that enabled bipartisan deficit-cutting deals decades ago has disappeared, replaced by bitter partisanship and chronic dysfunction.

That’s the reality that will greet Trump’s latest budget , which will promptly be shelved after landing with a thud on Monday. Like previous spending blueprints, Trump’s plan for the 2020 budget year will propose cuts to many domestic programs favored by lawmakers in both parties but leave alone politically popular retirement programs such as Medicare and Social Security.

Washington probably will devote months to wrestling over erasing the last remnants of a failed 2011 budget deal that would otherwise cut core Pentagon operations by $71 billion and domestic agencies and foreign aid by $55 billion. Top lawmakers are pushing for a reprise of three prior deals to use spending cuts or new revenues and prop up additional spending rather than defray deficits that are again approaching $1 trillion.

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