The Faster America ‘Grows,’ The Faster America Goes Bust
The comments above & below is an edited and abridged synopsis of an article by Economica
Huge increases in federal debt over the last ten years was accompanied by a minimal increase in interest payable on all that debt. The Federal Reserve is primarily to thank for the cheapening of debt and encouragement to undertake all that debt, but many fear ongoing interest rate hikes.
In five months of fiscal year 2018, the Treasury has already issued $630 billion in new debt, and is on pace to issue $1.2+ trillion in new debt. Let’s be conservative and assume the Treasury ‘only’ issues another $370 billion over the next seven months for $1 trillion in new debt. The added responsibility from the debt undertaken in 2018, per every full-time employee in the US: +$31 per work day; +$157 week; +$658 month; +$7.9 thousand annually.
This would be in addition to the $163,000 every full-time employee is already responsible for. But this understates the issue. According to the Treasury’s 2017 Financial Report of the US Government, the “total present value of future expenditures in excess of future revenues” is $49 trillion in addition to the federal debt. Social Security and Medicare require $49 trillion to allow that money to grow at a compounded annual rate in conjunction with estimated future tax revenues to meet the present and future payouts that have been promised.
The US Treasury is telling you that between the federal debt and unfunded liabilities, the US is $70 trillion in the hole and despite record tax revenue, record stock and real estate valuations, the US is bankrupt.