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We Have Soul-Destroying Debt Because We Have Unending Deficits

By January 21, 2024Commentary

I will keep writing about this, as it imperils the quality of life for all of us and no Democrats and few Republicans seem to care.  Our huge debt pile and debt issuance needs have caused the Federal Reserve and US Treasury to loss control over long term interest rates.  But that debt exists because of huge federal government spending deficits over the last two decades, which occurred under Dem and Rep Presidents.  Presidementia Biden has taken this to new low by running $2 trillion deficits when the economy is supposedly superstrong.  But that relationship is backwards.  The economy only appears strong because the federal government, controlled by the Dem party, keeps throwing money around to make its rich campaign contributors even richer and to buy votes.

The only thing preventing a recession is all the money being spent by Dems and all the money being printed by the Fed to support that deficit spending.  On average, the Federal government is spending $150 billion more each month than it takes in as revenue.  This is obviously unsustainable but the Dems just hope the house of cards doesn’t collapse until after November.  I have not idea what the Presidementia’s plan is if he actually manages to win a second term, which is a terrifying possibility.  We have unlimited inflation with no growth or a recession.  When the market refuses to buy US debt, and that will happen, its over.  (ZH Post)

Join the discussion 2 Comments

  • South Carolina says:

    I came across a compelling letter to the editor in today’s edition of the Red Star, shedding light on the pressing issue of the national debt. The author has backed their points with well-referenced documentation links. It’s worth noting that, although the letter found its place at the bottom of the page, it’s commendable that the Red Star chose to publish it.

  • Bill in Seminole, FL says:

    It was not so very long ago that a spending program in excess of $1 trillion over 10 years was considered, by most on both sides, to be inflationary, if not outright damaging to the country. The, along came COVID, and spending restraint was abandoned. That coincided with widespread acceptance among primarily Democrats of something called Modern Monetary Theory which postulates that governments with a fiat currency system under their control can and should print as much money as they need to spend because they cannot go broke or be insolvent unless a political decision to do so is taken. Now we have politicians regularly advocating for social welfare programs that cost in excess of $1 trillion (over 10 years), knowing that the funding for those programs will come from debt, and more debt. And they do as described above knowing that Social Security and Medicare will require trillions of Federal funding to stay alive.

    The Federal government spent $659 billion on interest payments in 2023, the largest single outlay after Social Security, Medicare and defense.

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