Friday, November 18, 2016
Is The U.S. On Pace To Increase The Debt By $2.4 Trillion This Year
Zero Hedge/Sovereign Man: Obama on pace to increase the debt by $2.4 trillion this year
OK, this is pretty nuts.
According to data released by the Treasury Department yesterday, the US national debt has soared by a whopping $294 billion since the start of the 2017 fiscal year, just 45 days ago.
That’s an annualized increase of 14%.
So if they keep up this pace, the national debt will increase by $2.4 trillion this fiscal year, surpassing $21 trillion by next September.
It’s hard to believe how rapidly the debt is growing; debt growth is far outpacing the growth of the US economy… and there’s no way to pretend that this is good news.
That doesn’t stop leading economists from trying.
Nobel Laureate Paul Krugman says “debt is good” because the US economy has grown so much over the last 200 years despite not having been debt-free since 1835.
This kind of logic is astonishing.
Read more ....
WNU Editor: To begin .... President Obama is not the only one who should be blamed for the massive explosion of U.S. debt in the past few years .... the U.S. Congress has also been a major participant in this mess. As to what is my take on government debt .... it has become a tool for politicians to pursue their agenda and policies without burdening the taxpayer with higher taxes .... at least at the beginning. But all good things do come to an end .... and while economists and Nobel Laureates like Paul Krugman likes to push the narrative that since interest rates are low we should borrow more .... the sad fact is that governments become addicted to this method of obtaining funds for their budgets that when interest rates do rise .... and they will rise .... we get the economic and financial crisis that then impacts everyone. As for the $2.4 trillion debt project in the above post .... when this fiscal year is over by next year it is currently projected to actually be over $1 trillion. As for the long term .... this has the potential of becoming President-elect Trump's biggest crisis .... and why his program to expand and grow the economy must succeed because if economic growth does not happen .... this debt problem is going to be a crisis that will become his legacy .... even though he is not responsible for it in the first place.