That is not what the US government spends, no they spend more that that, that is what they borrow…everyday, all day long. The current total for the US Federal debt is about $20.7 trillion dollars and as Judge Andrew P. Napolitano observed in his post A Million Dollars A Minute “that is a debt bomb that is waiting to explode.”
He goes on to explain:
Every year, the federal government collects about $2.5 trillion in revenue and spends it all. It borrows another $1.5 trillion to $2 trillion and spends it all…the federal government will need to spend about $1 trillion a year in interest payments.
That $1 trillion is 40 percent of the revenue collected by the federal government; that’s 40 cents on every dollar in tax revenue going to interest on old debts — interest payments that are legally unavoidable by taxpayers and voters.
The government (unlike the rest of us) can use some pretty shady accounting practices to maintain this level of debt creation. For example, the can print money to use to buy their own debt (don’t try that at home); they can manipulate the economy to increase inflation making the debt worth less and they can even manipulate the interest rates so they can borrow more at less cost. There are a lot of other tricks they can use but this cannot go on indefinitely. Eventually, they (meaning we the people) will have to pay the piper.
Think this is not a serious threat? Think that there are more serious threats out there like the Russians? Here is what the Judge had to say about that:
President Obama’s and President Trump’s own military and intelligence chiefs have argued that the national debt — not the Russians or the Islamic State group or the North Koreans — is the greatest threat to freedom and security that we face today.
And before anyone jumps up and starts blaming either side of the political aisle, both parties are guilty of digging us into this hole:
…after eight years of publicly complaining that then-President Barack Obama was borrowing more than $1 trillion a year to fund the government — borrowing that the Republicans silently consented to — congressional Republicans, now in control of Congress and with a friend in the Oval Office, voted to spend and hence borrow between $5 trillion and $6 trillion more than tax revenue will produce in the next three years; that’s a few trillion more than they complained about in the Obama years.
While I am concerned about war with North Korea and terror attacks this is what really keeps me up at night. Keep in mind, that the last time the world faced a financial crisis of this magnitude we ended up in this little conflict called World War II. People in desperate economic times with clutch at any promise of prosperity even if it is made be madmen like Hitler.
How many are actively preparing for this disaster? How many people around the world even realize the magnitude of the risk we are facing?
Think, plan, prepare…and God bless.