Debt Insanity: Does Anyone In Washington Even Care That We Are 20 Trillion Dollars In Debt?

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There has been a tremendous amount of talk about the spending deal that was just reached in Congress. Most of the focus has been on who “won” and who “lost” politically, and if you have been keeping up with my articles you definitely know my opinion on the matter. But what nobody is really talking about is that this deal actually increases spending at a time when our debt has been absolutely exploding. We added more than a trillion dollars a year to the U.S. national debt during Obama’s eight years in the White House, and our debt binge actually accelerated toward the end of his second term. In fact, the national debt increased by more than 1.4 trillion dollars during fiscal 2016

 

In fiscal 2016, which ended on Friday, the federal debt increased $1,422,827,047,452.46, according to data released today by the U.S. Treasury.

At the close of business on Sept. 30, 2015, the last day of fiscal 2015, the federal debt was $18,150,617,666,484.33, according to the Treasury. By the close of business on Sept. 30, 2016, the last day of fiscal 2016, it had climbed to $19,573,444,713,936.79.

Since we are already in so much debt, we might as well shoot for the moon, right?

This new spending deal increases spending in a whole bunch of different ways, but it doesn’t do anything to raise more revenue.

At the moment, the U.S. national debt is stuck at $19,846,087,305,498.20 because the debt ceiling has not been raised. The federal government is using accounting tricks to keep that number from moving, but the moment the debt ceiling is finally raised by Congress that number will jump up by hundreds of billions of dollars.

By the time fiscal 2017 is over, we will almost certainly have added at least another trillion dollars to the debt, and the Congressional Budget Office is projecting that an additional $10 trillion will be added to the debt over the next ten years.

These days we toss around the phrase “a trillion dollars” as if it isn’t a big deal.

But it is a big deal.

Let me share a little illustration with you to give you an idea just how much money a trillion dollars is. If you started spending a million dollars every single day on the day that Jesus Christ was born and you kept on spending a million dollars every day since then, you still would not have spent a trillion dollars by now.

The borrower is the servant of the lender, and I would say that we are enslaving ourselves, but that is not exactly accurate because we don’t actually have any intention of ever paying any of this debt back. Instead, we plan to just keep going into more debt for years to come.

Sadly, it will be our children and our grandchildren that will have to deal with all of this debt if our nation lasts that long. Thomas Jefferson was entirely accurate when he described government debt as a way for one generation to steal money from another, and since the day that Barack Obama first entered the White House, the federal government has been stealing more than 100 million dollars an hour from our children and our grandchildren every single hour of every single day.

Just think about that for a moment.

If some thieves could somehow get away with stealing 100 million dollars from someone, that would make headlines all over the globe.

But this is what we are doing to future generations of Americans every single hour of the day.

I have said it before, and I will say it again. What we are doing to our children and our grandchildren is beyond criminal, and in a just society those that are responsible for getting us into so much debt would be going to prison.

When you are in the middle of a debt binge, it can seem like there will never be any consequences, but the truth is that a day of reckoning always arrives eventually.

One of the reasons why I get so fired up about the national debt is because it could literally destroy the bright future that our descendants were supposed to have.

If you look back over the long-term, the average rate of interest on U.S. government debt has been somewhere around 6 percent.

Of course at the moment we are nowhere near that level, but it is inevitable that interest rates will move back toward the long-term average eventually.

So let’s imagine that the average rate of interest got back to just 5 percent. If that happened, we would be paying about a trillion dollars a year just in interest on the national debt and we would be facing national bankruptcy.

Of course the Federal Reserve would likely start printing money like mad at that point, and we would rapidly become another Venezuela or Zimbabwe.

But if it is so dangerous for governments to go into so much debt, why do they do it?

Well, for one thing most politicians don’t really care about long-term considerations. Instead, they actually want the government to spend lots of money in the short-term, because government spending always gives a boost to short-term economic activity.

And if the economy is “doing well” in the short-term, it is more likely that the voters will be in a good mood when voting time arrives.

This is something that Barack Obama understood very well. He inherited quite an economic mess, and so he went on the greatest government debt binge in American history. As I explained in a previous article, if we had not borrowed and spent 9.3 trillion dollars during the time that Obama was in the White House, we would be in the worst economic depression in our history right at this moment.

Of course by going into so much debt, our long-term problems have been magnified.

It had been hoped that with the Republicans in control of the White House, the Senate and the House of Representatives that a sense of fiscal responsibility would return to Washington, but that obviously has not happened. So now the stage is set for the kind of financial meltdown that I have been warning about for a very long time.

At one time the Republicans would at least give lip service to trying to control the debt, but now they also seem to have become convinced that our exploding national debt doesn’t really matter.

There are a few dozen members of the House and a handful of Senators that are still keeping up the fight, but they are vastly outnumbered.

Even though we were the wealthiest and most prosperous nation on the entire planet, that was never enough for us.

We always had to have more, and so we have accumulated the greatest mountain of debt in the history of the world.

There will be severe consequences for what we have done, but the warnings are being ignored, and so now all that is left is for us to reap what we have sown.

   
  • Scott

    The spending deal is actually Obama’s last budget which ties Trump’s hands. We”ll see what Trump does in September when he has more leverage and can propose his own budget.

  • BeenThere

    “Does Anyone In Washington Even Care That We Are 20 Trillion Dollars In Debt?”. If all this debt is owed to foreigners, then the answer is no. Who is going to collect from the most armed nation in the world. It would be like trying to collect debt from the Mafia. The USA can simply keep piling on the debt for as long as the silly foreigners want to keep loaning them the money as the USA has no intention of paying. However, if the silly foreigners decide to stop loaning the money then…..

    • Kim Collins

      What a silly statement! Are you working for the Deep State! Idiot!

    • Zlatko Milanovic

      See what happens when you drop out of high school? Dumb statements come out of your poorly educated mind. You can brush up about the debt on wikipedia if you’d like.

  • SMASH THE CONTROL MACHINE

    Berean Study Bible
    Babylon is Fallen
    1After this I saw another angel descending from heaven with great authority, and the earth was illuminated by his glory. 2And he cried out in a mighty voice:

    “Fallen, fallen is Babylon the great!a
    She has become a lair of demons.
    She is a haunt for every unclean spirit,
    a hideout for every unclean bird,
    and a hold for every detestable beast.b
    3All the nations have drunkc
    the wine of the passion of her immorality.
    The kings of the earth were immoral with her,
    and the merchants of the earth have grown wealthy
    through the extravagance of her luxury.”
    4Then I heard another voice from heaven say:

    “Come out of her, my people,d
    so that you will not share in her sins
    or contract any of her plagues.
    5For her sins are piled up to heaven,
    and God has remembered her iniquities.
    6Give back to her as she has done to others;
    pay her back double for what she has done;
    mix her a double portion in her own cup.
    7To the degree that she has glorified herself and lived in luxury,
    inflict on her that much torment and misery.
    In her heart she says, ‘I sit as queen;
    I am not a widow and will never see mourning.’
    8Therefore her plagues will come in one day,
    death and misery and famine;
    and she will be consumed by fire,
    for mighty is the Lord God who judges her.”
    Lament over Babylon
    9Then the kings of the earth who committed sexual immorality and lived in luxury with her will weep and wail at the sight of the smoke rising from the fire that consumes her. 10In fear of her torment, they will stand at a distance and cry out:

    “Woe, woe to the great city,
    the mighty city of Babylon!
    For in a single hour
    your judgment has come.”
    11And the merchants of the earth will weep and mourn over her, because there is no one left to buy their cargo— 12cargo of gold, silver, precious stones, and pearls; of fine linen, purple, silk, and scarlet; of all kinds of citron wood and every article of ivory and precious wood, of bronze, iron, and marble; 13of cinnamon, spice, incense, myrrh, and frankincense; of wine, olive oil, fine flour, and wheat; of cattle, sheep, horses, and chariots; of slaves and souls of men.

    14“The fruit of your soul’s desire
    has departed from you;
    all your luxury and splendor have vanished,
    never to be seen again.”
    15The merchants who sold these things and grew their wealth from her will stand at a distance, in fear of her torment. They will weep and mourn, 16saying:

    “Woe, woe to the great city,
    clothed in fine linen and purple and scarlet,
    adorned with gold and precious stones and pearls!
    17For in a single hour
    such fabulous wealth has been destroyed!”
    Every shipmaster, passenger, and sailor, and all who make their living from the sea, will stand at a distance 18and cry out at the sight of the smoke rising from the fire that consumes her, saying, ‘What city was ever like this great city?’

    19Then they will throw dust on their heads as they weep and mourn and cry out:

    “Woe, woe to the great city,
    where all who had ships on the sea
    were enriched by her wealth!
    For in a single hour she has been destroyed.”
    20“Rejoice over her, O heaven,
    and you saints and apostles and prophets;
    because it is for you
    that God has pronounced His judgment against her.”
    The Doom of Babylon
    21Then a mighty angel picked up a stone the size of a great millstone and cast it into the sea, saying:

    “With such violence
    the great city of Babylon will be cast down,
    never to be seen again.
    22And the sound of harpists and musicians,
    of flute players and trumpeters,
    will never ring out in you again.
    Nor will any craftsmen of any trade
    be found in you again,
    nor the sound of a millstone
    be heard in you again.
    23The light of a lamp
    will never shine in you again,
    and the voices of a bride and bridegroom
    will never call out in you again.
    For your merchants were the great ones of the earth,
    because all the nations were deceived by your sorcery.”
    24And there was found in her the blood of prophets and saints, and of all who had been slain on the earth.

  • Ray S.

    What’s after a trillion? I’m afraid that’s what we’ll eventually see in my lifetime.

    • Jeri Brace

      Quadrillion

  • Sabre Sbr

    May I suggest you listen to Tom Keane’s interview of Bernanke. I am paraphrasing but he said healthcare spending at the current rate could be a problem in 20 years!!!. This is a Princeton Grad with ebonic math skills. At the current rate of increase the country is toast in less than five.

  • R.C. Gerber

    I wouldn’t worry about it too much… the rapture is on the way here and there is 666 for the ones still here afterwards.

    • Zlatko Milanovic

      An invention of John Darby in the 1830s, not historic Christian theology. Not Apostolic either. Read your history, John Darby wasn’t an Apostle, neither are his teachings about the rapture valid.

  • kfilly

    Our entire economy is based on debt. It could never be repaid once the system started. Each Federal Reserve Note is an instrument of debt. Our country is really a foreign corporation. Research the Act of 1871. Your elections do not matter as they are selections. When you registered for Social Security, you signed up for the Communist Party. Every politician and all the judegs are seditious traitors.

  • kfilly

    I also want to add that it is their full blown intent to bankrupt the country. We are fascist but will become a totalitarian system once the staged collapse arrives.

  • Anything close to this kind of debt is impossible under government established upon Yahweh’s unchanging moral law, including His economic laws, in particular His 7-year debt release.

    For more on how Yahweh’s immutable moral law applies and should be implemented today, see free online book “Law and Kingdom: Their Relevance Under the New Covenant” at http://www.bibleversusconstitution.org/law-kingdomFrame.html.

    Then “A Biblical Constitution: A Scriptural Replacement for Secular Government” at http://www.bibleversusconstitution.org/biblicalConstitution.html.

  • Zlatko Milanovic

    Republicans only care about debts and deficits when Democrats have the White House. Once they are in power, the debt is no longer an issue. It’s OK when Republicans cut taxes or spend money we don’t have. It’s only those awful Democrats who should be held accountable for the debt.
    If it wasn’t true, then the Republicans would be cutting the discretionary budget and raising taxes on everyone and everything in order to service the debt.
    But that isn’t a priority right now, just when President Obama was in office. See?

  • Mark

    A little over a year ago I laid down for a nap on my day off from work and I had a strange dream. I don’t believe all dreams are prophetic but these things in my dream weren’t on my mind and I wasn’t even thinking of them. I dreamt I was working in a grocery store and I was standing at the front by the doors. Inside and out there was a screen like one on a smart phone except larger. There were people inside shopping with baskets and laughing and talking like always in this small town. What was strange is there weren’t any cash registers. Nothing. I saw a manager coming my way and I got nervous and didn’t want to appear lazy like I wasn’t working so I went outside to gather baskets. I saw a 20$ bill laying in the parking lot on the ground so I picked it up with excitement and kept finding money torn and dirty and was still stuffing it in my pockets. I was then in my home and I noticed my space heater I had caught on fire so I grabbed it to throw out in the yard and noticed new very nice appliances piled up everywhere in my yard and next to my porch was a pile of bread. I woke up and went to get a drink of water and was thinking about the dream and thought how nice it would be to find money laying around like that and I had a thought like a voice speak to me and I heard, “It was laying on the ground because it was worthless”.

  • Alaska Old Duffer

    The National Debt is a easy fix, and nothing to worry about. The US Government has over 150 Trillion Dollars in assets. Including most of the land in the west, and government buildings. Owing 20 Trillion dollars is a 15% loan to value ratio. Wouldn’t you like to have 80% of your house paid for? All the Government needs to do is sell 20% of their assets to pay off all debt, and put Trillions of cash back into their coffers. Exclude Military Bases, National Parks, and essential buildings. I believe the Government has 200,000 vacant buildings sitting on prime real estate. Sell em! The states of Nevada, Utah, Alaska, Wyoming, Idaho, Oregon, Arizona, and New Mexico would love to be able to buy back federal lands. So would individual tax payers and investors. Start selling. I wanna buy.