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View Full Version : Monopoly money for nothing


tomder55
Feb 26, 2024, 04:54 AM
We have passed the point of no return . The debt spiral is unstoppable IMO .

The CBO illustrates the problem. They estimate that this year for the 1st time ;the money needed to service the US debt will be more than will be spent on either defense this year and Medicare by next year .

CBO: Federal Interest Payments Now Exceed Defense Spending (forbes.com) (https://www.forbes.com/sites/theapothecary/2024/02/07/cbo-federal-interest-payments-now-exceed-defense-spending/?sh=33bb28a249d3)

It's a double whammy . Irresponsible spending coupled with increased interest rates due in large part to Bideninflation means that more money is required for debt service .

America is expected to spend $870 billion, or 3.1% of gross domestic product, on interest payments this year. That is nearly double the annual average of 1.6% of GDP since 2000. And interest costs are projected to reach 3.9% of GDP by2034 2034.

A $1 Trillion Conundrum: The U.S. Government’s Mounting Debt Bill - WSJ (https://www.wsj.com/finance/the-u-s-government-will-soon-spend-more-on-interest-payments-than-defense-ee6fbeec?mod=hp_lead_pos3)

The only good news out of the CBO report is that despite it's dysfunction ;Congress managed to pass a good bill this session ; the "Fiscal Responsibility Act and the Further Continuing Appropriations and Other Extensions Act of 2024.”

That is because ;despite the fact that it is a pork laden omnibus spending gimmee bill ;they did manage to add some restraints on discretionary spending .

Implementing the Statutory Limits on Discretionary Funding for Fiscal Year 2024 | Congressional Budget Office (cbo.gov) (https://www.cbo.gov/publication/59861)

In a saner world we would be able to sue the government for fiscal malfeasance. But since we elect these clowns ;our only case is against ourselves .

To preserve our independence, we must not let our rulers load us with perpetual debt. We must make our election between economy and liberty, or profusion and servitude.
(Thomas Jefferson)