It is hard to believe that the nation of farmers and small businessman, the America of 1776, that created the finest political document, the US Constitution, has fallen so far. As the Bible says, “a generation rose up that knew not these things.” We actually believe there is such a thing as a free lunch. We actually believe we can continue going into debt with no consequences, no limit, and no need to bother paying it off. Well, it’s the debt, stupid. It always has been, and it will always be true. You can’t spend more than you make, either as an individual, or a corporation, or a government. Yet, we not only keep doing this, we revel in it. We also think China will keep buying our Treasury bonds, they won’t, even as they are reduced to fancy toilet paper. The reckoning is due.
I find Trump to be a truly fascinating character. I am more of a never Hellary the Criminal voter, than a pro Trump voter. Still, on balance, Trump has done many good things, many neutral things, and more bad things than I like. Trump’s “economy” is roaring along; yet, the debt still piles up, in terms of both the federal deficit and the total federal debt. The debt was some $20 Trillion dollars when Trump took office, and it hasn’t gone down at all. In fact, even though “they” tell us the ratios have changed, the debt still goes up. The link below explains what is really happening. Trump has added over $500 billion in debt so far. It is estimated by the end of fiscal 2018, Trump will have added another 1 Trillion, to over 21 Trillion. Assuming he gets his 1 Trillion dollar “infrastructure project,” the figure could go much higher. Trump is turning out to be a “big spender.” His assumptions he will decrease debt by increasing economic growth, increase tax revenue, and cut spending are flawed. Like Reagan, Trump is increasing spending, decreasing tax revenue, and assuming greater economic growth over the next decade than will actually happen. The only credible way to decrease both the deficit and the total federal debt is to cut spending, which Trump won’t do. So, there you have it, gang. Once more we have decided debt is not important, and we will pay the price for that flawed assumption.
US Treasury says government borrowing will hit 8-year high
By MARTIN CRUTSINGER
WASHINGTON (AP) — With the government’s budget deficit rising, the Treasury Department announced Monday that it expects to borrow $441 billion in the current January-March quarter, the largest amount in eight years.
The Treasury said this figure compares to actual borrowing of $282 billion in the October-December quarter. It will be the largest borrowing need since the government borrowed $483 billion in the January-March quarter of 2010, a period when the government was using stimulus spending to try to lift the country out of the Great Recession and provide support to the banking system after the worst financial crisis in seven decades.
The government’s borrowing needs have been rising as federal deficits have increased. The deficit for the 2017 budget year, which ended last September, totaled $665.8 billion.
Private forecasters believe this year’s deficit will climb to around $765 billion, and some are forecasting deficits for next year could once again top $1 trillion. Those projections reflect growing costs for Social Security and Medicare as the baby boom generation retires and the costs of the big tax cut that President Donald Trump pushed through Congress last month, a package estimated to boost deficits by $1.5 trillion over the next decade.
To cope with the higher borrowing needs, Treasury has asked Congress to raise the borrowing limit, which is currently $20.5 trillion. The government has continued borrowing money during the impasse but Treasury Secretary Steven Mnuchin’s will run out of room to use various bookkeeping maneuvers to stay under the current debt limit probably by early March.
Treasury on Wednesday will release the specific details of what types of securities it plans to sell this quarter to meet its borrowing needs.
Here is a link to the “debt clock.”
I will note the current total Federal debt equals 103 percent of our GDP. This is up from 99 percent as recently as 2015. The bottom line is total federal debt is increasing, as is the ratio to our total GDP. It should also be clear the interest payments to the vile Federal Reserve are also increasing.
Doomer Doug, a.k.a. Doug McIntosh now has a blog at www.doomerdoug.wordpress.com
My end of the world e book “Day of the Dogs” will soon be available for sale at smashwords. The url is
https://www.smashwords.com/books/view/267340 It is also at the following url