U.S. Debt Jumps $1 Trillion in 3 Months – Is the Economy Healthy?
Sunday, November 24, 2019 12:09
% of readers think this story is Fact. Add your two cents.
“U.S. Debt Jumps $1 Trillion in 3 Months – Is the Economy Healthy?”
by Birch Gold Group
“It first worried Federal Reserve Chair Jerome Powell in January, then billionaires started to panic in February. Turns out, both may be right. We’re talking about the national debt, which sits at $22.986 trillion as of November 5, according to the U.S. Treasury. Since February 1, the debt has jumped over $1 trillion. The alarming fact is, most of that debt increase came in just the last 3 months. Plus, according to Zero Hedge, “under the last two US presidents, total US debt has increased by 115%, to a record $23 trillion.”
You can see the big jump in debt since August 2019 on the chart below (which reflects the total through October 31):
US federal debt; click image for larger size.
This jump in debt within such a short period of time is unprecedented in the last 25 years (at least). The total amount of debt the U.S. holds is also a record. Wolf Richter adds, “And these are the good times, and not a financial crisis when everything goes to heck.” Which begs the important question… With this mountain of debt, is the economy truly healthy? The outlook doesn’t look very good. Considering these are “good times,” what happens if there is a dramatic change?
Wolf Richter explains what will happen to the debt if there is a recession: “When government tax receipts plunge and government expenditures for unemployment and the like soar? The federal debt will jump by $2.5 trillion or more in a 12-month period. That’s what it will do.”
Zero Hedge illustrates how the mounting debt is impacting the U.S. budget, stating, “In fiscal 2019, the government spent just shy of $600 billion on interest payments equivalent to nearly the entire US Medicare budget, and more than the amount spent on the combined costs of education, agriculture, transportation and housing.”
The Federal debt held by the public is also projected to double, shooting up “from 78 percent of gross domestic product (GDP) in 2019 to 144 percent by 2049” according to the CBO.
And about those GDP numbers, Brandon Smith from Alt-Market.com highlights potential deception: “Government spending of taxpayer dollars on a number of inflated programs, including continued spending on Obamacare, is added to GDP calculations. Without this fancy accounting, U.S. GDP growth would actually be negative, according to ShadowStats.”
So if fancy accounting is all that is masking negative growth in the U.S. economy, times can’t be all that good. ShadowStats reveals that “fancy accounting” may put the real unemployment rate closer to 20%, and not the official number of just under 5%. If GDP is negative, and one-fifth of the able-bodied U.S. population isn’t working, those facts alone don’t paint the picture of a “great” economy.
Mises.org sheds light on a stark reality about the U.S. debt, “That lenders at some point may not be willing to loan our government these trillions of dollars a year.”
The Manhattan Institute doesn’t think we’ve recovered from the last recession, stating, “The Fed’s unprecedented quantitative easing since 2008 failed to lead to a robust recovery.”
Add it all up, plus toss in quite a few signals that point to a downturn, and suddenly the economic outlook is pretty grim.
U.S. debt has most likely reached the point of no return. The federal government will have to pay more and more to service this debt, making it virtually impossible to pay down the principal, short of a miracle. This puts tremendous pressure on the U.S. economy to keep up. But don’t count on Powell and the Fed to save it.”
Source: http://coyoteprime-runningcauseicantfly.blogspot.com/2019/11/us-debt-jumps-1-trillion-in-3-months-is.html
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).
MOST RECENT
HELP KEEP NEWS FREE
DONATE
HERE
| Online: | |
| Visits: | 1,599,910,811 |
| Stories: | 8,140,684 |
Wanted: Citizen Reporters,
Whistler Blowers, Insiders
Whistler Blowers, Insiders
"Not by might, nor by power, but by my spirit, saith the Lord of hosts." Zechariah 4:6
Today's Top Stories
Featured
Top Global
Top Alternative
FLEET OF (UFO) INVISIBLE FLYING CRAFTS caught on Google Earth of the …
https://www.youtube.com/watch?v=A628rhDyHRs
FLEET OF (UFO) INVISIBLE FLYING CRAFTS caught on Google Earth of the coast of Florida. FLEET OF (UFO) INVISIBLE FLYING CRAFTS caught on Google Earth of the coast of Florida.
we do not need oil!