US Government Debt Bomb Much Higher Than Americans Realize: Implosion Coming!
By Steve St. Angelo / GoldSeek
The U.S. Federal debt bomb continues to increase, even with the government shut down. In just one day, the U.S. public debt increased $50 billion on Jan 15th. While the total outstanding Federal debt has now reached nearly $22 trillion, it doesn’t include all U.S. government debt.
That’s correct… there’s a lot more debt than Americans realize sitting on the balance sheet of the U.S. Government. For example, there are other obligations such as U.S Government Agency Debt that isn’t well-known. According to the USGovernmentSpending.com website, U.S. Agency debt is the amount of outstanding debt issued by federal agencies (such as FHLB and GNMA) and government-sponsored enterprises (such as Fannie Mae and Freddie Mac). The amount of U.S. Agency debt
Then we have also to include State and Local Debt that is not apart of the U.S. Federal public debt. California holds the highest amount of State Debt in the country at $155 billion followed by New York at $141 billion. You can check out the debt of each state here: Compare State Debt.
Okay, let’s start adding up all the U.S. Government debt and put it into perspective. The total U.S. Federal debt is $21.97 trillion while U.S. Agency debt comes in at a whopping $9.26 trillion and State-Local Debt is $3.1 trillion:
Thus, total outstanding U.S. Government debt is a staggering $34.3 trillion. So, there is an additional $12.4 trillion of debt on the U.S. Government balance sheet, which turns out to be more than half of U.S. Federal Debt. A trillion here and a trillion there really starts to add up.
So, if we include all of this debt and compare it to the U.S. GDP, it is substantially higher than the current 104% stated by the Federal Reserve. By incorporating ALL debt, the total U.S. Government debt to GDP figure is more like 166%. Of course, the accountants at the U.S. Treasury and Federal Reserve don’t want to include all of this debt because it makes the financial ratios much worse.
Unfortunately, the U.S. Federal Debt won’t be going down anytime soon. On the other hand, forecasts for just U.S. Federal Debt suggest we are going to reach $30 trillion by 2025:
According to Statista.com, total U.S. Federal Debt will reach $22.5 trillion by the end of fiscal 2019 (Sept 30th) but will continue to increase to $30 trillion by 2025. I have also included my estimated average interest expense paid by the U.S. Treasury for its outstanding public debt. Remember, this only consists of the current $21.97 trillion of Federal Debt.
If interest rates continue to rise slowly to the same level it was in 2010; then the U.S. Treasury will be forking out $900 billion a year just to service its debt:
The data put out by the TreasuryDirect.gov website has shown that the interest expense the U.S. Treasury has paid for the first three months of fiscal 2019 (Oct-Dec) was $164 billion, a hefty 12% more than the $147 billion paid during the same period last year. If we estimate that the U.S. interest expense in 2019 is going to increase by 12% for the entire year, that turns out to be $580 billion… very close to the estimated $562 billion shown in the chart above.
Now, some individuals might not agree with my estimated 3% average interest rate by 2025, but we must remember that the low 2.2% rate in for 2016 took place when the Fed Funds Rate was 0.25%. So, when the Fed lowered its interest rate down to nearly zero, the lowest the average interest rate paid for U.S. Treasury Debt was 2.2%. Hell, my 3% interest rate by 2025 might be too conservative.
Either way, the U.S. Debt Bomb is much higher than most Americans realize. When the U.S. economy finally starts to implode investors need to understand that ASSET values will evaporate while DEBTS stay the same. That is a recipe for disaster.
As I have mentioned in several of my articles and videos, Gold and Silver are not backed by debt, which is why they will be some of the best safe havens when the value of most assets disintegrate.
Check back for new articles and updates at the SRSrocco Report.
http://news.goldseek.com/GoldSeek/1547816580.php
More great articles here: http://goldseek.com
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).
| Online: | |
| Visits: | 1,599,773,909 |
| Stories: | 8,140,266 |
Whistler Blowers, Insiders
So where is the long overdue market reset everyone has been warning us about? David Rockefeller orchestrated a major stock market crash every seven years starting in 1973 & 1980. We are still getting over the mess he made in 2007-2008. He had help with his fed reserve banker bros that own the Federal Reserve & its banks. By doing this, Chase bank has become the biggest bank in the world, & he plus his banker buds all became multi-billionaires. Wells Fargo Bank, Bank of America, and Citi bank have all grown enormously through this manipulation. Rockefeller died, & guess what? The stock market resets stopped. We have been due one since 2015, so we are very over-due. They did this to soak up all the federal reserve baseless fiat money they print out of thin air. They crashed the stock markets to let the little people take the loss. The super-rich strategy is to pump up the market, dump their stocks at the peak, crash the market, & buy them all back at the bottom (good old pump-n-dump). If an individual stock broker does this for a single stock, they will get caught by the Feds and put in jail for this felony (see the Wolf of Wall Street movie about Gordon Gekko). These people doing this are big enough that nobody will ever touch them. Old man John D Rockefeller did this by creating the stock market crash of 1929. He doubled his money in one year doing this. Burn in hell, John, until your pile of dollar bills you stole from poor and working people that is roasting your rich ass burns up. Enjoy the company of grandson David, who is no doubt in the jail cell next to yours. Was it worth it? Really?
If the super-rich don’t crash the stock market again, one grim alternative is hyper-inflation. This is the worst sort of safety valve for all that bogus fiat money. Look at Venezuela. They have an inflation rate of 800,000%. The super-rich don’t want this, because they know it will deflate the value of their money also. The super-rich have set up a fiat money printing machine called the federal reserve in every country in the world. Now the value of money is distorted world-wide. For example, the Nigerian Naira has dropped in value by 90% in the last 30 years due to fiat printing of money. Even the Swiss & Chinese have this machine set up. That is why there is a special currency only for internal use by their citizens and a separate currency for foreign exchange. They know how to play the game to win so their people don’t get hurt. The geniuses that run the US will never figure this out.
The sheeple out there don’t realize how broke the US is. The debt is 47 trillion dollars. That means that you could put everything in the country out on the street & sell it in a national yard sale, & it still would not pay off the debt. Every family knows that the endgame for insane, reckless overspending is bankruptcy. Then someone else has to take the loss. That won’t work with the US on a national basis. What will happen is the young people will give up on democracy & capitalism, and elect someone as sanguine as Franklin Roosevelt that is an amoral dictator like Hitler down inside. What a nightmare. Socialism only works until the money the new government steals finally runs out. Venezuela is the most recent example.
The third alternative is war. When a small shop is about to go bankrupt & take the owner into bankruptcy also, a common solution is to burn the store down. They will say “the insurance got hot” as they call in the insurance man for a settlement. All the inventory shown on the books (but long ago stolen) “burns up”, and the insurance company takes the loss. Let’s hope the deep state doesn’t order a war to blot out the debt. These people are wicked enough to kill 200 million Americans and a billion other people in the world just to keep from losing some of their precious money. Hellfire is waiting for these people. They have no fear of God.
It is going to be an interesting year….yee-haw…