National Debt and Deficits

[tsptalk]

Just as you thought it couldn't get any worse. How is this business as usual and not a problem going forward?


From zerohedge.com:

https://twitter.com/zerohedge/status/1742390346716209319?t=3-ABIlfIbHVDGFpv6EwZ7A&s=03

Larger view of chart: https://cms.zerohedge.com/s3/files/inline-images/US interest expense_0.jpg?itok=LK-jdfN1

 

[Boghie]

It is a problem going forward...

We, as voters, keep voting for more of the same. Treasuries and Gubmint Bonds are now more difficult to sell - hence their interest rates are going up. It really doesn't matter what the FED does. How many of us actually own much 'F Fund'? At what interest rate(s) would any of us be open to purchasing the 'F Fund'? The FED is NOT compelled to buy our crappy Federal gubmint debt - and, I doubt they will. We know what is coming and it is our fault.

The politicians we elect voted to raise the debt ceiling. That's nice!!!

 

[Boghie]

After data mining the AutoTracker: 7% of us have 20%+ invested in the 'F Fund'

That ain't showing a lot of confidence. Some (much) of that is because of the return, but a lot of it is because we expect the interest rates to escalate. I think we all know that bad crap debt will require high interest rates.

If it all doesn't go 'poof' and the politicians actually start making the hard decisions than we have a great investment environment ahead. It might be too late for that though.

 

[tsptalk]

U.S. deficit tops half a trillion dollars in the first quarter of fiscal year

For the October through December 2023 period, the budget deficit totaled just shy of $510 billion, following a shortfall of $129.4 billion in December alone.

The deficit has continued to pile up despite the Biden administration’s assurances that the Inflation Reduction Act, in addition to reducing prices, would shave “hundreds of billions” off the deficit.

U.S. deficit tops half a trillion dollars in the first quarter of fiscal year

 

[Bullitt]

The scary thing is that we'll look at this chart in ten years and unless the entire system has imploded, it will just be a blip on the radar. We'll never pay off the debts from 2020. Then tack on the third stimulus, shutting down Keystone XL, and the infrastructure stimulus and we're probably past the tipping point.

I used to think Netflix was in a bubble in 2010, but it's defied gravity since. If I bought at the peak of that cycle in 2011, I'd still be up 1,000% right now.

 

[tsptalk]

Meh. :dunno: :bigeyes: :thinking:


The U.S. national debt is rising by $1 trillion about every 100 days

The nation’s debt now stands at nearly $34.4 billion, as of Wednesday.

Since June, the last two $1 trillion jumps occurred in about 100 days.

The U.S. national debt is rising by $1 trillion about every 100 days

 

[TommyIV]

Do not just blame the Federal Reserve for high borrowing costs. The U.S. government debt is elevating interest rates high across the global market:


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In 2008, the U.S. accounted for about a quarter of all outstanding debt issued by the governments of rich countries. Now it accounts for about half.

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[FONT=var(--article-font-family)]That’s a problem for other borrowers, who have to compete with a large and voracious debtor with a high credit rating. In short, the U.S. government’s enormous appetite for debt is making it more expensive for everyone else. [/FONT]

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This problem does not seem to have a solution in sight. The current political regimen in the U.S. does not have the urgency to contain the growing debt.
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U.S. Government Debt Is A Growing Concern[FONT=var(--article-font-family)]
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