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Thread: The US Spent A Record $523 Billion On Debt Interest In Fiscal 2018

  1. #1

    The US Spent A Record $523 Billion On Debt Interest In Fiscal 2018

    https://www.zerohedge.com/news/2018-...ts-fiscal-2018

    Earlier this week, when the US closed fiscal 2018 on September 30, we reported that US gross national debt jumped by $84 billion on September 28, the last business day of fiscal year 2018; with this last push higher, total gross national debt in fiscal 2018 rose by $1.271 trillion to an all time record of $21.52 trillion.

    What is more stunning, is that only six months ago, on March 16, it had for the first time risen above the $21-trillion mark, while a year ago, at the end of September 2017, it was just $20.2 trillion.



    The reason for the soaring debt total is, of course, the runaway US budget deficit, which while providing a temporary sugar rush to the US economy comes at a cost of explosive debt. As a reminder, one month ago, the CBO revised its forecast, and now expects the deficit will approach $1 trillion by the end of this fiscal year or one year sooner than disclosed in the CBO's most recent forecast; in April the agency didn’t expect the deficit to reach $1 trillion until 2020.

    Many have asked if any of this actually matters in the grand scheme of things. Last week Bloomberg published a piece titled "Skyrocketing Deficit? So What, Says New Washington Consensus" which explained that neither Republicans nor Democrats are bothered by the devastating long-term trajectory of US debt, effectively making deficit hawks an extinct species:

    In both parties, deficit spenders are gaining ground. That makes Year Two of the Trump administration look increasingly like end-times if you are, for example, the Committee for a Responsible Federal Budget.

    “The tax cuts really set off a spiral of irresponsible justifications for not caring about fiscal responsibility,’’ says Maya MacGuineas, president of the CRFB. The group gets funding from the Peter G. Peterson Foundation, a project of the late Wall Street billionaire, who advocated slashing social programs to balance the budget.

    One reason why US legislators no longer care about either the deficit or US Federal Debt may be because deficits are supposed to trigger inflation and scare off bond investors. And while until recently, the latter have been all but missing, a sharp repricing took place last week when as we discussed previously, 10Y yields soared in the last three days of the past week amid a vicious repricing of inflationary expectations, which led to a near record bond market rout, a surge in bond market volatility and a sharp selloff in stocks.

    ...
    Full article at link.

    ---

    Thats where your Income Tax really goes, to pay on the Interest the FedGov owes to the Privately Owned Federal Reserve Bank.
    1776 > 1984

    The FAILURE of the United States Government to operate and maintain an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    Belief, Money, and Violence are the three ways all people are controlled

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.



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  3. #2
    #MAGA baby! We’re all about the records! We are the hugest! The best!
    "And now that the legislators and do-gooders have so futilely inflicted so many systems upon society, may they finally end where they should have begun: May they reject all systems, and try liberty; for liberty is an acknowledgment of faith in God and His works." - Bastiat

    "It is difficult to free fools from the chains they revere." - Voltaire

  4. #3
    Quote Originally Posted by DamianTV View Post
    https://www.zerohedge.com/news/2018-...ts-fiscal-2018



    Full article at link.

    ---

    Thats where your Income Tax really goes, to pay on the Interest the FedGov owes to the Privately Owned Federal Reserve Bank.
    Not all of it.

  5. #4
    Quote Originally Posted by timosman View Post
    Not all of it.
    Explain please.
    1776 > 1984

    The FAILURE of the United States Government to operate and maintain an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    Belief, Money, and Violence are the three ways all people are controlled

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.

  6. #5
    Quote Originally Posted by DamianTV View Post
    Explain please.
    We pay more in taxes than $500B.

  7. #6
    Quote Originally Posted by timosman View Post
    We pay more in taxes than $500B.
    That is true. Hell, we only got rid of the $#@!ing Civil War tax on telephones like a decade ago. Civil War tax...
    1776 > 1984

    The FAILURE of the United States Government to operate and maintain an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    Belief, Money, and Violence are the three ways all people are controlled

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.

  8. #7

  9. #8
    .
    Quote Originally Posted by DamianTV View Post
    https://www.zerohedge.com/news/2018-...ts-fiscal-2018



    Full article at link.

    ---

    Thats where your Income Tax really goes, to pay on the Interest the FedGov owes to the Privately Owned Federal Reserve Bank.
    .



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  11. #9
    This is a good reason why manufacturing in the US is a good idea. The US needs to become self sufficient so they can just default on the debt and tell the rest of the world to fuch off.

  12. #10
    Quote Originally Posted by Schifference View Post
    This is a good reason why manufacturing in the US is a good idea. The US needs to become self sufficient so they can just default on the debt and tell the rest of the world to fuch off.
    Given Trump's extensive experience with corporate bankruptcies does not seem far fetched.

  13. #11
    Quote Originally Posted by timosman View Post
    Given Trump's extensive experience with corporate bankruptcies does not seem far fetched.
    He is the most qualified president to lead the US thru bankruptcy.

  14. #12
    Bankruptcy, or not Bankruptcy, the Bank still wins, and OWNS the US.
    1776 > 1984

    The FAILURE of the United States Government to operate and maintain an
    Honest Money System , which frees the ordinary man from the clutches of the money manipulators, is the single largest contributing factor to the World's current Economic Crisis.

    The Elimination of Privacy is the Architecture of Genocide

    Belief, Money, and Violence are the three ways all people are controlled

    Quote Originally Posted by Zippyjuan View Post
    Our central bank is not privately owned.

  15. #13
    I have it on the best authority that debt doesn't matter.

    ...Trump says it doen't matter because easy federal bankruptcy law allows him to $#@! his creditors, and this helps him, so it's great.

    ...Marx says it doesn't matter because he plans to kill the creditors anyway.

    ...Keynes says we'll all be dead in 20 years, so what does it really matter at this point?!

    Mises shakes his head silently in the corner and buys another Krugerrand.

  16. #14
    Quote Originally Posted by r3volution 3.0 View Post
    I have it on the best authority that debt doesn't matter.

    ...Trump says it doen't matter because easy federal bankruptcy law allows him to $#@! his creditors, and this helps him, so it's great.

    ...Marx says it doesn't matter because he plans to kill the creditors anyway.

    ...Keynes says we'll all be dead in 20 years, so what does it really matter at this point?!

    Mises shakes his head silently in the corner and buys another Krugerrand.
    It really doesn't matter as long as the interest is serviced. Interest payments is all the owners care about since the interest paid is earned money from the people. The principal is just accounting entries moved around inside their books and never took labor/blood/sweat/energy to create. They only care about earned money because only earned money has value. All of the financial system revolves around this theme. It's why car loans and mortgages are front-loaded with interest payments. It's why credit cards only require the minimum payments each month, which usually comes very close to being the interest amount for the month. There are other examples also.

    Quote Originally Posted by DamianTV View Post
    Bankruptcy, or not Bankruptcy, the Bank still wins, and OWNS the US.
    That's what the last ~90 years has been about. Taking ownership of the assets of the country. The US government corporation has been in a state of bankruptcy since 1930. What we are experiencing now is the discharge of that bankruptcy, not the beginning of one.
    Last edited by devil21; 10-10-2018 at 11:33 PM.
    "Let it not be said that we did nothing." - Ron Paul

    The entire internet is the domain of paid shills and bots. If you don't know this by now....

    Israel, under control of the Crown and, ultimately, the Vatican, own the USA. If you don't know this by now....

    Talk to people about liberty. You won't find it on websites, you won't find it in politicians.

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