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National debt passes $22 trillion for first time in history

Mujahideen

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#1
The soaring national debt has passed a new milestone, topping $22 trillion for the first time in US history.

The Treasury Department’s daily statement showed Tuesday that total outstanding public debt was $22.01 trillion compared to $19.95 trillion when President Trump took office in January 2017.

The debt figure has been rising at a faster pace following passage of Trump’s $1.5 trillion tax cut in December 2017 and action by Congress last year to boost spending on domestic and military programs.

https://nypost.com/2019/02/12/national-debt-passes-22-trillion-for-first-time-in-history/
 

Cigarlover

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#2
I wonder how much longer before grains of sand are scarcer than US dollars?
 

ZZZZZ

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#3
$22 trillion is just the tip of the phony fiat iceberg.

If the farkin' federal government had to keep its books in accordance with private sector accounting standards, they would have to recognize about $222 trillion more in unfunded debt liability.
.
.
 
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Cigarlover

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#4
They take in like 4 trillion plus a year and cant make ends meet with that. Of course pelosi has to have her private jet so make sure you pay your taxes on time. Wouldn't want her 17k an hr plane to run late.
 

SongSungAU

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#5
You can keep posting this and just increase the number because until the Federal Reserve is abolished.... there's nothing but increasing debt in our future. Get used to it.

END THE FED!

The Federal Reserve Act was passed by mostly Democrats in the Senate and mostly Democrats in the House and signed into law by a Democrat President.
 
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hoarder

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#7
I don't go around advocating we "audit" or even "abolish" the fed. We should arrest all the central banksters, confiscate their loot, charge them, convict them and hang them.

1545755399005.png
 

Cigarlover

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#8
So 2020 we go to 24 trillion, 2021 we got to 27 trillion, 2022 we go to 30 trillion. So by 2030 we should be around 50 trillion.

It's just time to give up the illusion and print all they want. Give everyone free stuff and let the chips fall where they may.. Just get my free check to me quickly so I can turn it into real money.
 

Joe King

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#9
The soaring national debt has passed a new milestone, topping $22 trillion for the first time in US history.

The Treasury Department’s daily statement showed Tuesday that total outstanding public debt was $22.01 trillion compared to $19.95 trillion when President Trump took office in January 2017.
It's all good.
....at least for now.

As long as the debt can be and is serviced, the ball stays in play.

The problem comes when interest rates go up and the gov can no longer afford to both service the debt and meet its self-imposed obligations on all the various social programs.

A couple points.

Half of all US debt is due within the next 6 years. That means the issuance of new debt for at least $11trillion plus all deficit spending within that time frame will need to occur. With many nations slowing, or even stopping their purchases of US debt, I can't help but to think that the debt could become un-serviceable within the next 8-13 years.

Also, keep in mind that during that same time period the gov will need to payback all of the monies previously borrowed from the SS trust fund. That's at least an extra $3-5trillion in new debt that will need to be issued. Or alternatively the gov could actually pay it off. Ok, that made me laugh just typing it. lol

Think of that. All the monies that were borrowed over the course of several decades will need to be paid back over the next 10-13 years. Trust fund is scheduled to be depleted by 2033. That means paid back between now and then. That means raise that much in taxes or issue that much more debt in order to do so.

Or the gov could cancel other programs and divert those funds to SS, or the gov could just cut (or even eliminate) bennies to a level the gov could afford, but will probably go the debt issuance route as it's seen as the easiest way. That is, as long as the World economic situation continues to be crappy enough to make our shit look good by comparison.
....but even that won't matter if interest rates rise high enough to make that debt issuance cost prohibitive, and by all appearances they're headed in that direction.




IMO, the gov ain't paying none of it off. The gov has literally gone decades now being unable to pay off old debt without issuing new debt in order to do so.
....and by the time a debtor can only pay off old debt by issuing new debt, default is usually but a matter of time.
 

newmisty

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#12
They take in like 4 trillion plus a year and cant make ends meet with that. Of course pelosi has to have her private jet so make sure you pay your taxes on time. Wouldn't want her 17k an hr plane to run late.
On the books she makes almost $900 per day.
 

newmisty

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#13
 

Ebie

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#14
Japan has 2.5 times our debt to GDP ratio--and they are doing OK...
 

newmisty

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#16
Japan has 2.5 times our debt to GDP ratio--and they are doing OK...
Have you seen their "game shows". They are NOT ok. (just a joke)
 

Strawboss

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#17
Japan has 2.5 times our debt to GDP ratio--and they are doing OK...
Plus we are the worlds reserve currency (Japan isnt). We have PLENTY of runway left...right?

Right?

Bueller?

Mueller?

Anybody?
 

newmisty

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#18
Plus we are the worlds reserve currency (Japan isnt). We have PLENTY of runway left...right?

Right?

Bueller?

Mueller?

Anybody?
Sure thing boss. No problem at all! :oops:
 

Joe King

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#19
Joe King, the debt is already unserviceable, the fact that it increases $20,000 every second is proof positive.
I understand where you're coming from and generally agree, but it's considered to be serviceable as long as the payments are being made.
Kind of like making minimum payments on a CC. It's not the best approach, but as long as one does that, it's all good for the time being.


Supposedly the govs cost of interest went up by 20% last year. If so, that's not a good trend. If that continues, it's just a matter of time before it becomes a budget-buster. I think the gov has already in recent years been paying close to a half trillion in interest. What happens if that doubles, triples or more in just a few years? How could it not bust the budget?
...and QE was a swapping of long term debt for short term debt. That's one of the reasons so much of our debt comes due within the next 6 years. If rates go up substantially, by the time all that debt is rolled over again, it could very well come with much higher interest payments.


Unless there's a recession in the next year or so and the fed drops rates back to zero. Which could happen, as we're probably due for a recession.
 

chomper

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#20
I understand where you're coming from and generally agree, but it's considered to be serviceable as long as the payments are being made.
Kind of like making minimum payments on a CC. It's not the best approach, but as long as one does that, it's all good for the time being.
They aren't even making the minimum payments haha.

Govco will always be in debt for as long as the Fed exists.
 

southfork

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#22
If the fed would quit manipulating the rates down the interest on the debt would be unpalatable
 

ZZZZZ

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#23
Even a "normal" 5% discount rate would crash DC and the entire global financial system.

Bring it on!
.
.
 

gliddenralston

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#24
We know the acronym MAGA – Make America Great Again. A different description of MAGA is MYTHS ASSOCIATED with GOVERNMENT ACTIONS.
WHAT MYTHS?
THE MYTH OF GOVERNMENT SHUTDOWN.
Some parts of the U.S. government close. The employees are not paid and hardship blankets the land. Well, NO! The government employees are paid retroactively and most business continues as usual. It is good political theater. The D.C. circus never stops.

THE DOLLAR IS BACKED BY U.S. GOLD IN FORT KNOX AND ELSEWHERE. Not true! President Nixon abandoned the last connection between the dollar and gold in August 1971. Total U.S. gold reached 20,000 metric tons in the 1950s. The “official” U.S. gold is now 8,100 tons or 261 million ounces. Fort Knox holds 4,570 tons or 147 million ounces. At $1,300 per ounce the Fort Knox gold is worth $200 billion dollars. The Pentagon spends that much every three months, which suggests gold is under-valued and U.S. government expenses are excessive. A reset or re-balancing must occur.

GOLD AT FORT KNOX IS LOCKED IN ULTRA-SECURE VAULTS. Well, maybe. Yes, the vaults are safe from attack, but not from government approved theft. The last good audit occurred in the 1950s. Later audits have been… “inadequate.” Gold has never been independently audited. Many analysts, including myself, assume most of the gold has “disappeared.”
DOLLARS ARE MONEY. To be money something must be a store of value. Dollars have lost value—or purchasing power—since 1913 when a corrupt congress dumped the Federal Reserve upon the United States. Measured against gold—true money—the dollar has lost about 98%. Why does a Ford pickup that cost $2,000 fifty years ago cost $45,000 – $50,000 in 2018? Dollar devaluation! This shows a compound increase of over 6% per year for fifty years. Hundreds of other examples demonstrate the loss of purchasing power of the once mighty dollar.
Dollars (paper and digital) that we use as currency are debts of the Federal Reserve—the U.S. central bank. Those “dollar bills” are Federal Reserve Notes (debts).
What is the value of a note or debt issued by an insolvent central bank? Given the 100+ year history of dollar devaluations and the current insolvent status of The Fed, how much value will the dollar lose in ten years?
FEDERAL RESERVE 2% INFLATION TARGET. Why? Nonsense! The target for a healthy economy is 0% inflation or mild deflation as the economy becomes more efficient. The inflation desired by a corrupt central bank is 2% or more because inflation (dollar devaluation) benefits the political and financial elite. Do not expect the Fed or U.S. government to protect your financial assets unless you own Senators on “speed-dial.”

U.S. MILITARY FUNDING IS INADEQUATE. Nonsense! The U.S. spends as much on its military as the next seven (or more) countries. Military contractors demand larger budgets every year. Government is run by corporations for the benefit of corporations. Big Pharma, Big Ag, Banking, and Sick Care corporations want larger shares of government spending. Graft, corruption, payoffs, and waste thrive in a deficit spending system. There is little incentive for accountability while there are huge incentives to support the current payoffs.
THE NATIONAL DEBT IS NOT A PROBLEM. Yes, it is. Official national debt as of late December 2018 exceeds $21.8 trillion, or $66,000 per person ($170,000 per worker) in the United States. Most Americans would panic if their rent or mortgage payment increased by 25%. They are in no position to pay “their share” of the national debt through increased taxes. For reference:
Date National Debt
1971 $0.4 trillion
1981 $1 trillion
1986 $2 trillion
1992 $4 trillion
2006 $8 trillion
2012 $16 trillion (exponential increases since 1913)

Official national debt rose from $1 trillion to $20 trillion in 36 years. At that rate the debt will exceed $400 trillion by 2053. U.S. government interest payments, at current low rates, on the national debt are half a trillion dollars each year. Interest expenditures will rise to $1 trillion per year, and unless interest rates stay low forever, will exceed $2 trillion per year next decade. Dire consequences will result.
  • Debt increases rapidly, annual interest payments skyrocket, and the dollar devalues as they monetize the debt. Result: weaker dollar, higher prices, unpayable debt.
or
  • Interest rates stay artificially low, debt skyrockets while they destroy the purchasing power of the dollar and create hyper-inflation. Result: weaker dollar, higher prices, unpayable debt.
Pick your poison: debt defaults or hyper-inflation.
The U.S. economy works because businesses and people are confident they will pay debts, stocks will rise, the tax bite imposed by politicians is acceptable, the future will be better than the present, and pensions are safe. These beliefs inspire confidence, but they are increasingly false…
OFFICIAL U.S. INFLATION DATA. Official inflation data shows that inflation is low. But if you buy food, tuition, medical services, a truck, or pay for housing you know consumer price inflation is NOT low. Yes, computers cost less and gasoline is inexpensive. But on average consumer price inflation parallels the devaluation of the dollar which is much larger than the official inflation rate. The D. C. circus is a convincing show.
CONCLUSIONS:

  • MAGA—Myths Associated with Government Actions.
  • Myths about the economy are easy to believe. The media promote myths every day to support the status quo, which enables the wealth transfer process.
  • When confidence fails, disruptions occur, unemployment rises, and people lose faith in government, Wall Street, and their economic future. Civil unrest increases when confidence falls.
  • Dollars are devalued because they aren’t real money. Debt is insanely high and guaranteed to grow much worse. Expenses for favored groups such as military contractors, drug companies, and bankers are rising – out of control.
  • Our lop-sided economic system ensures the rich get richer and the poor … well good luck to them. It takes increasing welfare and giveaways to keep the downtrodden quiet and docile. Change is coming.
  • Dollars will devalue, governments will spend, politicians will talk, stocks will rise and crash, and gold will rally and correct.

February 2019 by Gary Christenson
 

Aurumag

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#25
$22 trillion is just the tip of the phony fiat iceberg.

If the farkin' federal government had to keep its books in accordance with private sector accounting standards, they would have to recognize about $222 trillion more in unfunded liability debt.
.
.
I think you grossly underestimate the total of unfunded liabilities.

Since we are discussing debt as money, it is probably well into the quadrillions.
 

Ebie

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#27
The US will not be able to reach the debt to GDP ratio that Japan has.
 

ZZZZZ

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#28

ZZZZZ

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#29

nickndfl

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#30
When the inflation hits it will be stagflation like the 1970s after the second oil crisis. No growth and prices went up and up anyway.
 

FunnyMoney

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#33
Remember, while it is true the 22T debt, which they've moved onto the shoulders of our children, is a terrible thing and a insanely large amount, ... however, it is still small peanuts compared to the amount of wealth they've stolen over the last 100 years and all the blood shed because of them.
 

Strawboss

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#34
Whats the big deal? So we pass on a few gazillion to our grandkids.
They - when their time comes - will pass on a few quadrillion to thier grandkids and so on and so forth...

Believe it or not...this is the plan that is being executed by those that run the global financial system.

Let that sink in for a minute...
 

hammerhead

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#35
Whats the big deal? So we pass on a few gazillion to our grandkids.
They - when their time comes - will pass on a few quadrillion to thier grandkids and so on and so forth...

Believe it or not...this is the plan that is being executed by those that run the global financial system.

Let that sink in for a minute...
I asked a proprietor if he was ever going to pay in full any of the places he "owns". He said that is never part if the plan. Keep the money flowing is all that it's about.
 

Ebie

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#36
Yes. But his properties are in positive cash flow territory. He is not borrowing more and more money to pay the interest on old unsecured loans.
 
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