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The US national debt is already grown by $1 trillion in a month

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65 comments
  • Seems like a totally sustainable situation.

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  • You realize the debt ceiling is about paying old debt, not incurring new debt, yes?

    https://home.treasury.gov/policy-issues/financial-markets-financial-institutions-and-fiscal-service/debt-limit

    "The debt limit does not authorize new spending commitments. It simply allows the government to finance existing legal obligations that Congresses and presidents of both parties have made in the past."

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    • This is just double speak to justify never cutting spending. The authorizing spend, is a lot more like add to cart than actually paying for anything.

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      • It really isn't. The history of the debt ceiling is fascinating. It was invented in 1917 in relation to WWI.

        https://time.com/6281003/debt-ceiling-history/

        "The first debt limit was established to give the Treasury autonomy over borrowing by allowing it to issue debt up to the ceiling without congressional approval, making it easier to finance mobilization efforts in World War I. Before that, Congress generally had to authorize the Treasury to borrow in smaller increments."

        So what's different now? Welll...

        "In the last two decades, the U.S. has added $25 trillion in debt, spending nearly $1 trillion more than it receives in taxes and other revenue every year since 2001—in large part due to financing wars, tax cuts, emergency responses, and expanded federal spending. To make up the difference, the government has to borrow money to continue to finance payments that Congress has already authorized."

        A large part of that spend were the wars in Afghanistan and Iraq. Under President Bush, the war spending was "off budget". In other words, it was funded by emergency spending declarations. $1.1 trillion in direct costs and $2.4 trillion in indirect costs and interest.

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    • You realize that the payments on the old debt are becoming unsustainable, yes?

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      • "becoming"? - LOL!

        Here's the thing, nothing substantive will ever be done about the debt until we commit to slashing, and I mean SLASHING the military budget.

        Which will never happen because of all the military bases that are in different Congressional districts.

        Point of comparison:

        In 2022, the feds collected $5 Trillion and spent $6.5 Trillion:

        https://usafacts.org/state-of-the-union/budget/

        Social Security was $1.22 Trillion, we can't touch that because people have been paying in their whole lives.

        Transfers to States $1.21 Trillion, Medicaid, Transportation dollars, "other". Same problem as defense, too many Congress critters demanded this money.

        Other Spending $1.16 Trillion, Education, "Other".

        Defense $1.03 Trillion - Needs to be cut. What isn't cut needs to be audited.

        Medicare $756 Billion - Needs an audit for fraud and abuse, but won't come close to balancing everything.

        Unemployment, SNAP, etc. "Welfare" - $619 Billion

        Interest on debt - $483 Billion

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  • So?

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    • So, Americans can expect more austerity policies, and higher interest rates.

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      • That's because the dollar is declining as the world reserve currency as a result of the US declining as the hegemon .

        The debt will only become relevant after the petrodollar is dead and after countries stop pegging their own currency to the dollar and after SWIFT becomes irrelevant and all the other things that prop up the dollar, and we've already long passed the point where the debt could be reduced enough to save the dollar after it loses its status. The high global demand for dollars meant the debt was irrelevant, but now that demand is on the decline the dollar is fucked and it can not be saved.

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      • In what sense does that follow from what you posted? Did you mean to post a different article?

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