The utterly unbelievable scale of U.S. debt right now

[Hoodat]

The utterly unbelievable scale of U.S. debt right now

The debt accumulated under Donald Trump would be enough to cover the inflation-adjusted cost of U.S. involvement in the Second World War

Tristin Hopper     |     February 15, 2019     1:31 PM EST

This week, the United States national debt ticked above US$22 trillion for the first time, an amount equivalent to $67,000 per U.S. citizen.

The U.S. federal government owes more money than any other institution in the history of human civilization. And it’s just getting worse. According to the Congressional Budget Office, in only 10 years the U.S. debt-to-GDP ratio will be higher than any point since the Second World War.

Below, a few factoids about just how eye-wateringly, bone-chillingly large the U.S. debt has become.

• U.S. debt is now higher than the combined market value of the Fortune 500
  
• Just with the money it spends on interest, the U.S. could run Canada or Mexico
  
• All the gold ever mined would only pay off the debt accumulated under Obama
  
• Debt from one Trump term could pay for another WWII
  
• One year of debt could pay for everything NASA has ever done
  
• Jeff Bezos’ fortune would cover only 34 days of debt accumulation
  
• In one year, the per-household share of the debt could buy a new car
  
• The U.S. just built history’s most expensive warship. It cost five days’ worth of deficit.
  
• The vast majority of this is entitlement spending
  
• This is all happening during good times
  

https://nationalpost.com/news/the-utterly-unbelievable-scale-of-u-s-debt-right-now


The key point above is that the vast majority of this is entitlement spending.  We are borrowing against our children's future so that people can get handouts today.  Every single dollar of money paid in federal income tax does not cover the amount of 'entitlements' [sic] being paid as direct cash payments to other people.

And it saddens me to no end to hear people on this forum comment that all this is no big deal, that Conservatism lost the election, and that we should all just get behind Trump and pretend everything is wonderful.

[Sanguine]

No, there is nothing "right" about this, and the piper will be paid.

[rustynail]

Now do Obama.

[ABX]

[Sanguine]

Got tired of being referred to by gay sexual terms, continually excoriated in the press and in person, and tired of being otherwise completely ignored.

[godblessRonaldReagan]

Nothing will be done on either side of the aisle until the grand collapse, and then it will be too late. 

[truth_seeker]

Under Reagan, tax cuts contributed to debt increases, but we were going to "grow our way" out of debt.

Under GW Bush, tax cuts contributed to debt increases, but we were going to "grow our way" out of debt.


Obama added MORE to the accumulated debt, than all Presidents before him.

[LMAO]

Nothing will be done on either side of the aisle until the grand collapse, and then it will be too late. 

 That’s because to actually make the cuts that are necessary would also be very unpopular. Everybody is promising more spending because unfortunately that wins elections. Universal healthcare, free college,  more military spending, pork projects to congressional districts all cost money.

[LMAO]

Got tired of being referred to by gay sexual terms, continually excoriated in the press and in person, and tired of being otherwise completely ignored.

 I have a hunch that if they came out today and protested the spending they’d find a much more sympathetic media than they found between 2009 to 2016. And their sympathy won’t have anything to do with the debt

[Sanguine]

I have a hunch that if they came out today and protested the spending they’d find a much more sympathetic media than they found between 2009 to 2016. And their sympathy won’t have anything to do with the debt

True.

[XenaLee]

Under Reagan, tax cuts contributed to debt increases, but we were going to "grow our way" out of debt.

Under GW Bush, tax cuts contributed to debt increases, but we were going to "grow our way" out of debt.


Obama added MORE to the accumulated debt, than all Presidents before him.

Just think what the 'next' DemocRat president will be adding to our debt.... while expanding social programs for illegals and decimating our national defense and military.  You ain't seen nuthin yet.

[ABX]

Just think what the 'next' DemocRat president will be adding to our debt.... while expanding social programs for illegals and decimating our national defense and military.  You ain't seen nuthin yet.

Hell, the current Republican president is exceeding that.. I don't even want to think what a Democrat will do to keep the ball rolling.

[verga]

BKMK

[Fishrrman]

No one's going to fix the debt problem.
$22 trillion? That's peanuts.

It'll go to $122 trillion, then $222 trillion, unless the system "physically breaks down" before those numbers are reached.

It will NEVER be fixed until things break down to the point where there is no other choice BUT to "fix them".

That day may come.
But when it does (probably after most of us ol' folks have passed), those alive aren't gonna like the steps the powers-that-be take to "fix" things.

[jmyrlefuller]

No one's going to fix the debt problem.
$22 trillion? That's peanuts.

It'll go to $122 trillion, then $222 trillion, unless the system "physically breaks down" before those numbers are reached.

It will NEVER be fixed until things break down to the point where there is no other choice BUT to "fix them".

That day may come.
But when it does (probably after most of us ol' folks have passed), those alive aren't gonna like the steps the powers-that-be take to "fix" things.

Like I noted on another thread... you look at the birth rate, and you can tell people know. They realize the mess the current society has made and don't want *their* flesh and blood to have to deal with it.

[Hoodat]

That’s because to actually make the cuts that are necessary would also be very unpopular.

Cuts?  I would be happy if they would simply stop the increases.

[InHeavenThereIsNoBeer]

Lately I've been thinking we'll know when things are coming to a head when we see the carrot and then the stick.  The carrot is when they make gains on US bonds tax preferential (probably by jacking up cap gains on everything else, as well as doing anything they can to try to coerce IRA/401k/etc to US debt).  This is the sign that they're having a hard time finding debt buyers.  The stick is when they jack up taxes on bond gains to the point where they basically default on the interest by taking it all back.  This is the sign they've given up on finding new suckers, I mean buyers.

[IsailedawayfromFR]

Lately I've been thinking we'll know when things are coming to a head when we see the carrot and then the stick.  The carrot is when they make gains on US bonds tax preferential (probably by jacking up cap gains on everything else, as well as doing anything they can to try to coerce IRA/401k/etc to US debt).  This is the sign that they're having a hard time finding debt buyers.  The stick is when they jack up taxes on bond gains to the point where they basically default on the interest by taking it all back.  This is the sign they've given up on finding new suckers, I mean buyers.

No need to do all of that gimmickry.

All they need to do is raise the interest paid on bonds.  People will buy the bonds.

And we go further into debt.

The cycle repeats until inflation rate looks like Venezuela.

Inflation is the absolute best way to cancel out debt.

It's been done many times by many governments.

[roamer_1]

No need to do all of that gimmickry.

All they need to do is raise the interest paid on bonds.  People will buy the bonds.

And we go further into debt.

The cycle repeats until inflation rate looks like Venezuela.

Inflation is the absolute best way to cancel out debt.

It's been done many times by many governments.

Hey... Don't worry... They can always print more money!   

 

[InHeavenThereIsNoBeer]

No need to do all of that gimmickry.

All they need to do is raise the interest paid on bonds.  People will buy the bonds.

And we go further into debt.

The cycle repeats until inflation rate looks like Venezuela.

Inflation is the absolute best way to cancel out debt.

It's been done many times by many governments.

They don't set the bond rates, the buyers do.  Until they don't (at least in theory, people are buying 100 year notes from Argen-"we default on our debt several times per century"-tina).

Inflation is the most obvious tool for defaulting on debt, but it's not the only one.  My point is when they start pulling the less obvious tricks it's a good sign that things are getting desperate.

[Hoodat]

They don't set the bond rates, the buyers do.

Bingo!  And the fact that we have to sell a whopping $2 trillion in bonds in a 12-month period, this alone would drive interest rates skyward.  It would take rates in the high teens to bring in that much capital.  Yet they brought it in for much less.  Which means that there is another lender out there who has an unlimited amount of capital and who requires little or no interest.  In other words, the Obama policy of monetizing the debt continues unabated.  We are simply printing up money just like Venezuela to keep government running.

[IsailedawayfromFR]

They don't set the bond rates, the buyers do.  Until they don't (at least in theory, people are buying 100 year notes from Argen-"we default on our debt several times per century"-tina).

Inflation is the most obvious tool for defaulting on debt, but it's not the only one.  My point is when they start pulling the less obvious tricks it's a good sign that things are getting desperate.

I believe we are saying the same thing.

People will not buy bonds unless their rates they wish are complied with, which will be higher as debt escalates.  Printing money to cover the increased debt and interest will escalate it even further until inflation wipes out the held bonds as being worthless.

Slate wiped clean and No more debt.

[Weird Tolkienish Figure]

Sold out to Trump, including Limblob.

Conservatives are possibly the biggest dummies on the planet.

[IsailedawayfromFR]

Sold out to Trump, including Limblob.

Conservatives are possibly the biggest dummies on the planet.

As a conservative, I resent that.

You should tailor your argument a bit.

[Free Vulcan]

It ends when we can't pay the interest out of cash flow any longer without significant cuts everywhere else.

It really ends when foreigners dump our debt and  currency from printing and devaluing our way out of the problem.