As of close of business on July 31, 2014, our debt has risen to $17,618,599,653,160.19. That crippling level of debt is itself astonishing but what is equally astonishing is that $7 trillion of that debt has been added in just the five and a half years of the Obama Administration. That $7 trillion is more than the debt accumulated from George Washington through Bill Clinton combined.
I remain in disbelief over the continued spending of Congress and the White House — I was also critical of George W. Bush who was not a fiscal conservative and the wars launched under his leadership contributed to these costs. Despite this mounting debt, neither the Congress nor the White House hesitated to send hundreds of millions more to Israel to pay for part of its defense or billions to places like Afghanistan and Iraq despite the loss of over $4 trillion in those wars.
I readily admit that I am more conservative on spending and taxes than many on this blog. However, I am not fanatically against debt as a concept. I just object to the cavalier attitude toward spending and more importantly the lack of priority. The greatest national security threats in this country are not Afghanistan or Iraq but our crumbling public education system, underfunded science and environmental programs, and such growing menaces as pandemics like Ebola.
As recent report showed that the level of waste in rebuilding Afghanistan alone is far greater than previously thought. John Sopko, the inspector general charged with monitoring aid sent by the U.S. to Afghanistan, found billions of dollars more wasted in Afghanistan. One small example are two $40.5 million C-130 transport planes that the U.S. government gave the Afghan Air Force even though it cannot use the planes. Such moronic forms of waste result in a shocking finding that of $10.6 billion in funding review, nearly $7 billion was potentially wasted. Yet, the money continues to pour in and no one is held accountable for the waste or stupidity. No one accept the American people who will pass this debt on to our children.
Here is the actual debt numbers from the government: Treasury
The magic number by my economic theory of money, is approximately $18.5T.
I have predicted this since 1998.
When we reach that number, it will reach a critical mass, a runaway process, essentially the beginning of hyperinflation or something equally drastic.
This number is related to the US income, and interest payments, and a couple other things.
Don’t say you weren’t warned. Prepare for this.
nick, You must be a fan of teapartyer Rick Santelli…..
Progressives continually show they are not forward thinking people. They will mortgage their grandchildren’s future for protecting the cult leader today.
“For now, the debt ceiling is less of a concern. Congress in February suspended the limit until March 15, 2015. Income tax payments will then postpone the date when the government exhausts its borrowing authority.
“Although the debt burden has stabilized, it will likely rise toward the end of the decade absent medium-term measures to raise additional revenue and/or to cut nondiscretionary expenditure,” S&P said today.
“Credit strengths of the U.S. include its diversified and resilient economy, its extensive economic policy flexibility, and its unique status as the issuer of the world’s leading reserve currency,” the ratings company said in its statement. “However, a polarized policymaking environment and high general government debt and budget deficits constrain the ratings.”
Moody’s and Fitch Ratings each rank the U.S. at the highest credit rating of AAA. ” from the Bloomberg article
http://www.bloomberg.com/news/2014-06-06/u-s-sovereign-credit-rating-affirmed-by-s-p-with-stable-outlook.html “The S&P report reflects that the U.S. is on better footing, that the deficit situation has been reduced over the last year and that the amount of the money the Treasury borrows has declined,” said Thomas Tucci, managing director and head of Treasury trading in New York at CIBC World Markets Corp. “Ultimately the fundamental fiscal situation in the U.S. has improved and the credit quality of the U.S. is in very good shape right now.” “
Jill, Good post…… Way too much money is being spent on government contractors.
Here’s where the money is going–note that Congress can work on getting things done if they want to do so: http://www.boilingfrogspost.com/2014/06/18/bfp-exclusive-report-a-distillation-of-dod-funding-priorities-for-may-2014/
Darren, Argentina just last week.
So the answer it seems by many here is to just ignore the debt because it can never amount to anything bad?
As to the WWII issue being still unpaid, have we not retired the war bonds and other debt securities having limited maturities? We continue to generate borrowing to offset deficits. And the claim that this is not having a negative effect on the United States are not considering the full reality of the markets.
The United States lost its AAA credit rating due to its swelling debt, deficit, and failure of its government to reign these in. If the credit rating continues to drop, investors are going to demand higher rates of return in order for these debt securities to be sold. Right now the market rate for these securities is cheap. When the market sours to US debt the effect it will have will become cascading. The U.S. will then have to spend ever increasing amounts of money from its current accounts to service the debt (meaning cutting programs or other benefits) or cause monetary policy that will ultimately devalue the dollar and inflation will grow significantly which will have numerous effects that will hit those living on money market securities and defined benefit retirement plans who’s payments are made in hard dollar amounts; among other things.
So to ignore the problem as saying the issue is irrelevant and not a crisis yet and doing nothing about it is going to catastrophic at some point because nothing is being done to control its growth.
Does nobody recognize history? How many nations have been brought to their knees by crippling national debt that became unserviceable. Look at cases of hyperinflation and the social turmoil that ensued in those countries.
Darren, The loss of the AAA rating was because Congress refused to raise the debt ceiling, and was the response of ONE credit rating service. Then we have the FACT, that these agencies cooked the books on the debt that was generated in the collapse of the real estate bubble. So please have some regards for all the facts. The credit rating is a subjective and political measure of some private companies, which are not above cooking the books.
randyjet – there are two ways to go, cut the debt or raise the ceiling. Several credit agencies have threatened to lower our credit rating.
The debt crisis is based on the end of the world. When the end comes, the debt will be paid in full. In the meantime, keep printing those bills.
John Oliver, That’s why the term cultist is so accurate.
http://www.ssa.gov/dibplan/dqualify4.htm
Yes just as I said. The SSA pays only for complete disability in SSDI and SSI. Paul you should do more research before making claims.
The reason I refuse to engage with certain posters is that they are immune to facts and reason. It is a waste of time since they are so poorly informed and cannot think, it is like arguing religion. I and others learn nothing from such exchanges since it is like responding to children who can only say ,It is to true!
Annie – you are right. Rules change. My brother was paid for partial disability for years. Then finally it was total disability.
It’s no wonder the political class continues their destructive habits when they have an enabling class whose gut instinct is to defend them at every turn. It’s marginally excusable when this is done out of ignorance; but it’s unconscionable to continue one’s support after being presented with such damning evidence.
Paul, no I think you may be wrong about that. One must be deemed completely disabled and unable to work to become a recipient of SSDI or SSI. Yes indeed a doctor or doctors must have evaluated the person and the SSA evaluates the medical evidence to see if it conforms to a rigid criteria of disability.
On another note, I do not believe that further finger pointing is helping to resolve anything, or even to address the problem. What the US needs is a forward looking attitude on how to fix the debt problem in particular and the federal government in general. Clearly over taxation is not working as it depresses economic activity and has led to a surprising number of departures by US companies (via tax inversions) and former citizens (who are surrendering their US citizenship in record numbers). So what’s next?
All this debt will have to be reconciled at some point. Especially if the dollar is simply ignored in the near future. Once again, folks think our economic system, while very young, is as solid as the earth we walk on. It’s only solid as long as people around the world see the value in holding on to debt-laden dollar notes. If you look at the huge block of the world–China, India, the ‘Stans, and maybe Germany–that is a big chunk of the world that may wash its hands of our dollars and debt and ignore our banking system entirely. And it won’t be without global consequences. I don’t have much faith in either Krugman or Steiglitz, they seem to walk into the same trap that our system is the only game in town.
“The problem with socialism is that you eventually run out of others people’s money.”
— Margaret Thatcher
The US government has run out of other people’s money.
Squeeky, for people who are old and or disabled, what would you rather do instead of Medicare? I once saw a kind of well known tea party type protesting, holding a sign about those terrible awful old and disabled folks getting Medicare and SSDI, SSI and how it was going to break the back of America! Well, funny it turned out that guy was disabled collecting SSDI and Medicare himself! Sheesh if he was able bodied enough to walk around holding a sign, he could’ve been working. Squeeky, you were in a rehab facility for quite a while recently ( as you said a few weeks back, you hurt your legs? 🙁 ) I hope your’e doing well and are up and about again.
Annie – fyi you can be partially disabled and receive SSI or SDI. And you have to be periodically evaluated by a doctor to confirm your disability.
Talk about being twofaced, Obama complained about being 9 trillion in debt when he ran for office in 2008, now he will have doubled the debt when he leaves office