The figures in this short Treasury Department report hammer home the gargantuan impact of 60% increase of our daily spending in this short four year period. If your teenager told you that he needs to increase his allowance by 60%, and you don't have an increase in salary, and you are not even sure you will have a proper job, the answer has to be to stop spending, period. Why can't our elected officials say no and start figuring what they have to cut.
Frankly, when I do what I am doing now, really thinking about the problem, I get where I want to reach out and hit someone. Not that that will help anything, and so I will just blow it off, and go on about my business. But, I will wager there are plenty like you and me who want to see something done about our debt.
TREASURY DEPARTMENT REPORT
EVERY DAY - The total debt of the USA on 1/20/09 (President
Obama’s inauguration date) was $10.627 trillion. The total debt
of the USA on 1/17/13 (3 days before his 2nd inauguration on
1/20/13) was $16.433 trillion. The increase of $5.806 trillion is
an average daily deficit of $4 billion (source: Treasury
We will never be able to pay our debt back in my opinion. So, what will happen when the rest of our trading partners decide they will have to make more profit on us, because our bonds are riskier. That is not far off. It's anybody's guess when we will feel the pinch in the stores with a weaker dollar and a higher purchase price on lots of things. Lots of angry soccer moms!
At what point will the rest of our trading partners say enough is enough? That in itself will slow down the economy even more, which is already going at a snails pace. I guess what will happen is that some international banks will refuse to accept American IOU's, and we will have to barter to trade goods some way. Once that happens we're in the soup. Our economy will be in the tank, and we will not be paying off any debt because the economy doesn't cover our expenses. It doesn't now...what will the breaking point be?
Without a proper debt ceiling agreement in the Congress our creditworthiness will be downgraded a third time. The credit granting agencies will bring down the hammer very soon if Washington doesn't get it right pretty quickly.
That means the U.S.will have to pay higher interest with money that is worth considerable less to keep borrowing more. The bubble is surely close to bursting. Inflation is already creeping in, so that is a danger.
In conclusion the backlash on low interest rates is increasing pressure on the FEDS. This worthless money they are printing in Washington is a completely irresponsible plan. I think we all know what happens to a country that prints worthless money? It gets more worthless, buys less, and financial panic sets in!