Doomer Doug
TB Fanatic
The total US government debt has now reached $21 TRILLION in the first year of POTUS Trump. Obama increased debt from around $ 10 TRILLION to $20 TRILLION, so Trump is in the same general range. I have seen articles claiming Trump is going into debt slightly slower, and less than Obama, which may be true. On the other hand, the spending beast is alive and well, munching away happily, and set to add roughly 1 TRILLION PER YEAR over the next decade or so.
The ancient Greek writer Polyibus stated that the fall of the Athenian Republic began when the politicians figured out they could take money from one class of people, and give it to another, in order to get elected, and to stay elected.
The Republicans have now lost even the fig leaf of being fiscal conservatives. We will eventually default on the debt. The bond markets will eventually force us to, or the foreigners who own a chunk of our debt will sell it off and trigger a bond collapse.
At any rate, the Uniparty likes debt, and it looks like Trump does too.
The link is here.
https://www.zerohedge.com/news/2018-03-16/us-national-debt-hits-21-trillion
US National Debt Hits $21 Trillion
Profile picture for user Tyler Durden
by Tyler Durden
Fri, 03/16/2018 - 17:47
For 8 years, we took every opportunity to point out that under Barack Obama's administration, US debt was rising at a alarmingly rapid rate, having nearly doubled, surging by $9.3 trillion during Obama's 8 years. It now appears that the trajectory of US debt under the Trump administration will be no different, and in fact based on Trump's ambitious fiscal spending visions, may rise even faster than it did under Obama.
We note this because as of close of Friday, the US Treasury reported that total US debt has risen above $21 trillion for the first time; or $21,031,067,004,766.25 to be precise.
Putting this in context, total US debt has now risen by over $1 trillion in Trump's first year... and the real spending hasn't even begun yet.
What is amusing is that Trump - who has a tweet for every occasion - and who no longer even pretends to care about the unsustainability of US spending was extremely proud as recently as a year ago by how little debt has increased during his term.
We doubt today's milestone will be celebrated on Trump's twitter account.
And while some can argue - especially adherents of the socialist Magic Money Tree, or MMT, theory - that there is no reason why the exponential debt increase can't continue indefinitely...
. one can counter with the following chart from Goldman, which shows that if one assumes a blended interest rate of roughly 3.5% as the Fed does, and keeps America's debt/GDP ratio constant, in a few years the US will be in what Goldman dubbed "uncharted territory" and warned that "the continued growth of public debt raises eventual sustainability questions if left unchecked."
The bad news, however, is that debt/GDP will not be constant, as the CBO recently forecast in what was actually an overly optimistic prediction.
The ancient Greek writer Polyibus stated that the fall of the Athenian Republic began when the politicians figured out they could take money from one class of people, and give it to another, in order to get elected, and to stay elected.
The Republicans have now lost even the fig leaf of being fiscal conservatives. We will eventually default on the debt. The bond markets will eventually force us to, or the foreigners who own a chunk of our debt will sell it off and trigger a bond collapse.
At any rate, the Uniparty likes debt, and it looks like Trump does too.
The link is here.
https://www.zerohedge.com/news/2018-03-16/us-national-debt-hits-21-trillion
US National Debt Hits $21 Trillion
Profile picture for user Tyler Durden
by Tyler Durden
Fri, 03/16/2018 - 17:47
For 8 years, we took every opportunity to point out that under Barack Obama's administration, US debt was rising at a alarmingly rapid rate, having nearly doubled, surging by $9.3 trillion during Obama's 8 years. It now appears that the trajectory of US debt under the Trump administration will be no different, and in fact based on Trump's ambitious fiscal spending visions, may rise even faster than it did under Obama.
We note this because as of close of Friday, the US Treasury reported that total US debt has risen above $21 trillion for the first time; or $21,031,067,004,766.25 to be precise.
Putting this in context, total US debt has now risen by over $1 trillion in Trump's first year... and the real spending hasn't even begun yet.
What is amusing is that Trump - who has a tweet for every occasion - and who no longer even pretends to care about the unsustainability of US spending was extremely proud as recently as a year ago by how little debt has increased during his term.
We doubt today's milestone will be celebrated on Trump's twitter account.
And while some can argue - especially adherents of the socialist Magic Money Tree, or MMT, theory - that there is no reason why the exponential debt increase can't continue indefinitely...
. one can counter with the following chart from Goldman, which shows that if one assumes a blended interest rate of roughly 3.5% as the Fed does, and keeps America's debt/GDP ratio constant, in a few years the US will be in what Goldman dubbed "uncharted territory" and warned that "the continued growth of public debt raises eventual sustainability questions if left unchecked."
The bad news, however, is that debt/GDP will not be constant, as the CBO recently forecast in what was actually an overly optimistic prediction.
A LOT more stuff, too-
