The United States national debt is stupendous. Deficit spending is egregious. Enormous. Unfathomable. Who among us can possibly grasp the true quantity of $Trillions… Apparently no one cares.
I tend to update this every year. Here’s the 2020 update.
The US national debt has increased from approximately $400 Billion in 1971 (when Nixon entirely unhinged the dollar from the gold standard) – to $27 Trillion in 2020. Apparently no one cares.
The gold window was officially closed in 1971 when the U.S. monetary system became one purely of fiat currency. Deficit spending was unleashed. And ever since then, government has been spending as though there will never be any negative consequences. Deficit spending became the new normal. No one cares.
The last time that there was actually a reduction in the US national debt was during 1951 under President Truman (source).
No Consequences For Out Of Control Government Spending
One would think there would be consequences for such deficit spending (see US National Debt graph below).
There appears to be no consequences. And certainly no end in site. Ginormous government spending continues. Massive money printing (mostly digital dollars) while more and more debt is piled up. It’s actually happening worldwide on a massive scale.
So does it actually matter?
What if you and I spent like this?
Oh wait… that’s right… we can’t print our own money. Wouldn’t that be nice?!!
Banks will lend you money, but only up to a point at which they calculate you can eventually pay it back. Banks need you to pay it back. With interest (their profit for lending you the money).
Yes, the US is paying the interest back to “the bank” (the Federal Reserve – a central PRIVATE banking cabal). However there is no way on this earth that a fraction of this debt will ever be paid. Ever. Never.
The interest rate on this massive pile of borrowed money MUST be kept very, very low — otherwise there will be default. Wouldn’t it be nice if we could call up our bank and demand a very low interest rate? And while we’re on the phone, ask for more, and more money on a regular basis?
The U.S. government (and many state and local governments) seem to be able to spend and spend without repercussions. How is that?
Governments sell their debt all over the place – including to other countries, to big investors, and even the Fed itself which is on the hook for Trillions. But the scheme just keeps on going. Seemingly never a hiccup.
More debt? No problem!
The government does not need to turn a profit to stay “in business”. The money for government just comes in like magic. Must be nice to spend other people’s money. No one cares.
So does it even matter? (spending Trillions more in debt each year?)
Here’s how the presidents line up with deficit spending since entirely going off the gold standard in 1971.
| President | Years | Deficit |
| Trump (so far…) | 4 | $7.2 T |
| Obama | 8 | $9.5 T |
| Bush G.W. | 8 | $4.3 T |
| Clinton | 8 | $1.6 T |
| Bush H.W. | 4 | $1.4 T |
| Reagan | 8 | $1.7 T |
| Carter | 4 | $287 B |
| Ford | 3 | $162 B |
| Nixon | 5 | $111 B |
The numbers keep getting bigger. But hey, that’s no problem for Uncle Sam. Just borrow more from the Fed. Print some more. Keep feeding the beast.
The deficit spending chart above is clearly ridiculous. But they’re getting away with it. No one cares.
Got to remember, the house is in charge of the purse strings
Since the Federal Reserve Bank makes up the money out of thin air, and then lends it to the government with interest, it’s literally nothing. Then they sell that nothing for real products. The world’s largest ponzi scheme. The house of cards only stands as long as the world believes in it.
That’s exactly right.
Basically it comes down to the global control grip of the banking cabal and their decisions. They decide who’s who.
That said, the U.S. has had military might and “reserve currency” status. Although Big Block nations are turning away (to an extent) from the dollar as their reserve currency – where able to do so.
Smaller nations get bombed when they turn away. But the big block nations? Not yet.
The #1 product in the world is debt.
Lauren is right. I just went online to see physically what a trillion dollars looks like in one-hundred dollar bills…there won’t be any mulligan here…it’s a complete do-over.
And China hold the most U.S. debt.
Very similar to the Road and Belt initiative. Pile an unsustainable debt load on a country and then play Let’s Make A Deal.
At the end of 2018 China held a little over $1 Trillion of our debt. Biggest foreign creditor, for sure, but not “the most”…Most is held internal to the U.S.
A comparison;
1 Million seconds = about 12 years
1 Billion seconds = 32 years
1 Trillion seconds = 32,000 years
<bb
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China was the largest us-debt holder for years, but Japan now holds more. China is 2nd, UK third.
Notice how the debt is rarely even mentioned anymore? I think nobody seriously believes that it will ever be addressed, so it’s a kind of contest to see how far it can be taken. And when it does come due, it’ll be a default or war (as in “try to take it and see what you get”). If I remember correctly, Trump even mentioned during his run in 2016 that he didn’t think it was necessarily a bad thing to default. It’ll take a long time for it to go bad though, idiots like me that are responsible and do pay things off, work, try to play by the rules, will keep trying. Until we don’t…. I also noticed the the Republicans have higher debts than the democrats, so much for the fiscal responsibility….
It will all collapse .It is truly a “smoke and mirrors” scenario that will eventually end. We really don’t seem to have anything to say about it . We don’t know when that will happen but we can prepare for a financial collapse somewhere in the future.We need to learn to be as self reliant as we possibly can.
$3.5 of that added under Trump has been in 2020, and is an anomalous response to the pandemic. Absent that, continued job and wealth creation would have significantly slowed debt increase.
. . . .
Federal economics is very complicated and is intertwined with everything in our lives. Part of our preparedness should include the concept that sometimes sacred cows get slaughtered. By this I mean Social Security and Medicare.
It shouldn’t be.
There is enormous BLOAT (government agencies).
Here’s a list of 483 agencies (do we need them all?) which I posted back in 2015
I believe the uncertain treasures of the new tower of babel will eventually come to nought.
Debt, disease, war, famine, hmmmm? Sort of Biblical wouldn’t you say?
The true believers of modern monetary theory like AOC are going to be sincerely disappointed.
Keep re-electing the same and expect change? TERM LIMITS!!!
Unfortunately, at this point, impossible without a Constitutional Amendment or a Constitutional Convention. Pigs will likely be flying (with or without lipstick) before either of those happen…<bb
With a new “news” distraction almost daily for the last few months, can’t help but think it’s to distract from the economic emergency occurring in real time behind closed doors. Just when one distraction begins to pass or “get old”, another starts.
And today, cue up the riots in Louisville, Kentucky..
Ehhh…they’re not going to do much here. They’ll try, but we’re not Portland.
Here’s the best, most current estimates I can piece together on who currently holds the US Debt (T for trillion) – these are all approximations and rounded off: $7 T Foreign-held (Japan, China, UK, etc…) $6 T US Gov agencies (incl s/s and m-care) $5 T Fed Reserve $4 T Private banks, pensions, ins co’s, etc… $2.5 T mutual funds $1 T US State & Local Gov’s + small bal’s in savings bonds & misc items When you combine the Fed holdings plus what the Social Security/Medicare trusts (and other Fed gov agencies) are holding, they make up about $11 trillion (less than half) of our debt. The remaining $16 or-so trillion is owned by various governments, agencies, companies, pensions and individuals who have an expectation of continued interest payments and re-payment in full at some point – the shell game cannot be played with that debt the way it can with inter-government debt. Yet, there still seems to be a big appetite for US debt. And we keep creating money (in print and digitally through the Fed) out of thin air. Maybe it’s because we are not yet in complete zero or negative interest rates as some governments are.… Read more »
It all came into being with a push of a button on a computer keyboard at the Fed. It can vanish with the same button. Fictitious “play” money is not the same thing as actual money, which is backed by some finite standard. Money backed by nothing is worth nothing but the faith we give it.
You cannot crucify the United States on a cross made of nothing, but the whims of the Fed.
Real money is fertile land, fertile animals, minerals and the divine providence of good health from our creator to learn the skills to enjoy them.
feral wallet,
absolutely correct.
I would add having family and good friends to help along and share your skills with…
One can literally put the FED out of business and revamp the entire means of exchange and the actual wealth of this Nation is not touched.
Yes there are consequences.
In 1980 the minimum wage was $3.10 and a hamburger and drink cost .85 cents.
Now the minimum wage is $7.25 and the same burger and drink cost $8.50
The wage only doubled but the food price increased 10 times.
But, really !
Who gives a ‘rat’s ass’ about this.
It’s one of those things you and I have no control over.
Aren’t we busy enough trying to manage our own lives, and getting prepared as best we can for what’s coming down the road ?
That’s something to really be concerned with.
Being prepared as best we can – focus on that !