Does Anyone Actually Care That The Exploding National Debt Is Destroying Our Future?

Tyler Durden's picture

Authored by Michael Snyder via The Economic Collapse blog,

When will America finally wake up? 

The borrower is the servant of the lender, and we now have a colossal 20 trillion dollar chain around our collective ankles. 

We have willingly enslaved ourselves, our children and our grandchildren, and yet our addiction is so insatiable that we continue to add more than 100 million dollars to our debt load every single hour of every single day.  The national debt is sitting at a grand total of $20,162,176,797,904.13 at this moment, but now that the debt ceiling has been lifted that number is expected to shoot up very rapidly toward 21 trillion dollars by the end of the year.  The national debt had been held down by accounting tricks to keep it under the debt limit for many months, but every time this has happened before we have seen the national debt absolutely explode back to projected levels once the debt ceiling was raised.

But very few of our “leaders” in Washington seem to care that we are in the process of committing national suicide.  There is no possible way that we will be able to continue to be the most powerful economy on the planet if we continue down this road.  During Obama’s eight years in the White House, we added more than 9 trillion dollars to the national debt.  That certainly improved things in the short-term, because if we could go back and take 9 trillion dollars out of the economy over the past 8 years we would be in an absolutely nightmarish economic depression right now.

But even with all of this borrowing and spending, our economy has still only grown at an average rate of just 1.33 percent a year over the last 10 years.

And by going into so much debt, we are literally destroying the future for our children and our grandchildren.

What we are doing to them is beyond criminal, and people should be going to prison over this.  But instead we just keep rewarding these Congress critters by sending the same cast of characters back to Washington over and over again.

Are we insane?

The feds are now projecting that the official yearly budget deficit will reach 1.4 trillion dollars by 2027.  Of course federal projections always end up being far more optimistic than reality.

And we are already spending about 500 billion dollars a year just on interest on the national debt, and by 2027 that number is projected to jump to 760 billion dollars a year.

This is complete and utter insanity, and yet we just can’t control ourselves.  The government continues to throw around money as if there is no tomorrow, and our tax dollars are being wasted on some of the most ridiculous things imaginable.

For instance, the U.S. military is spending 42 million dollars each year on Viagra.

We must stop this madness, and we must stop it now.  I really like how an editorial in the Houston Chronicle made this point…

Tax-and-spend politics are bad, but borrow-and-spend is worse. While we have some control over whether our lawmakers raise taxes, our children and grandchildren don’t get a vote on whether we burden them with debt.

 

Over the long run, huge government debt takes cash out of the economy and drives up interest rates, slowing economic growth and hurting private enterprise.

 

To protect the U.S. economy, Republicans need to nip plans to eliminate the debt ceiling in the bud and then get to work balancing the federal budget.

Will we ever learn?

Since the beginning of our nation, many of our most prominent statesmen have been warning about the dangers of accumulating government debt.  For example, during his farewell address President George Washington instructed the country to “avoid … the accumulation of debt not only by shunning occasions of expense but by vigorous exertions to discharge the debts, no throwing upon posterity the burden which we ourselves ought to bear.”

And Thomas Jefferson famously said that he wished that he could have added one more amendment to the U.S. Constitution which would have banned government borrowing…

“I wish it were possible to obtain a single amendment to our constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of it’s constitution; I mean an additional article, taking from the federal government the power of borrowing.”

This is one of the primary reasons why we must abolish the Federal Reserve system The Federal Reserve was actually designed to create a government debt spiral from which we could never possibly escape.  That is why the size of our national debt has gotten more than 5000 times larger since 1913, and we are never going to permanently solve our national debt problem until we get rid of the Fed.

Most Americans don’t realize this, but the path that we are currently on is not sustainable by any definition.  Debt levels are growing much, much faster than GDP, and that is a recipe for disaster.  The following is an excerpt from one of my previous articles

We are living in the greatest debt bubble in the history of the world.  In 1980, total government and personal debt in the United States was just over the 3 trillion dollar mark, but today it has surpassed 41 trillion dollars.  That means that it has increased by almost 14 times since Ronald Reagan was first elected president.  I am searching for words to describe how completely and utterly insane this is, but I am coming up empty.  We are slowly but surely committing national suicide, and yet most Americans don’t even understand what is happening.

 

According to 720 Global, total government debt plus total personal debt in the United States was just over 3 trillion dollars in 1980.  That broke down to $38,552 per household, and that figure represented 79 percent of median household income at the time.

 

Today, total government debt plus total personal debt in the United States has blown past the 41 trillion dollar mark.  When you break that down, it comes to $329,961.34 per household, and that figure represents 584 percent of median household income.

Sadly, most people are entirely clueless about what we are doing to ourselves.  Investors are the most optimistic that they have been in years, and most of the talking heads on television seem to believe that the party can go on indefinitely.

But that is simply not possible.

And the same thing is true from a global perspective as well.  The following comes from Chris Martenson

First: our entire economic model, which dependent on borrowing at a faster rate than income (GDP) grows, is something that simply cannot be maintained at its current rate or level. Check.

 

Second: depleting species, soils and aquifers are all wildly unsustainable practices that are accelerating. Check.

 

Last (and most glaring of all): the world’s leadership (and we use that term very loosely) continues to insist on adhering to the indefensible idea that infinite growth on a finite planet is possible  Checkmate.

The clock is ticking, and disaster awaits at the end of this road.

Will somebody please do something?

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c2nnib2l's picture

nobody cares 

since this is bullish for stocks 

Raffie's picture

We had a future?

Why am I always the last to hear such things.

Gaius Frakkin' Baltar's picture

National debt is the big paper elephant everyone likes to point at when the real elephants are on the loose rampaging through the streets.

Jim in MN's picture

I got nothin' to do

I got nothin' to say

Everything is so fucked up

I guess we like it that way

Everything falls apart

Everything falls apart

 

--Husker Du

tmosley's picture

Why should anyone care about a debt priced in a soon to be abandoned currency?

Other than bondholders, of course. Those guys are FUCKED.

sickavme's picture

Nobody cares because the power is on, water is flowing, food still comes from wal mart and the latest iphone is out...

JimmyJones's picture

Nailed it.

Why not tack on another cool trillion and build the space elevator so that we can start going into space and really get things going?

Hugh_Jorgan's picture

Except that 2018 has a change coming to the status of the world reserve currency:

http://www.imf.org/en/About/Factsheets/Sheets/2016/08/01/14/51/Special-D...

This will be the beginning of the end for the USD. Because although we will make up over 41% of SDRs, we will NEVER slow the printing presses down. This will eventually cause force the hand of the IMF and other PTP to continue to shift away from the USD.

Nobody For President's picture

And eatin' the seed corn...

(Should be a folk song.)

GUS100CORRINA's picture

Does Anyone Actually Care That The Exploding National Debt Is Destroying Our Future?

My response: First it was millions, then came billions and today we have trillions. I believe this will finally end when we get to quadrillions and there will be a great awakening and realization that the END has arrived.

Until then, BUY, BUY, BUY and BE HAPPY!!!

Of course, GOD could intervene with the RAPTURE and upset the whole thing just like He did with the recent storms! But no one believes in the RAPTURE "heresy" any more or do they?

Haus-Targaryen's picture

I don't care anymore, honestly.  

The powers that be have their foot on the gas pedal and its pushed so far into the carpet I doubt they could let off the gas even if they wanted to.  

No, this ends with a von Mises' "blow off top" explosion.  Not a deflationary one.  They have abject control of everything except the public psychie, and when that goes ... it collapses. 

God I wish something somewhere would just break already. 

Philo Beddoe's picture

Me too, Haus. The give-o-shit meter is at zero and has been for awile. 

When it falls apart it falls a part. No point watching paint dry. 

For fuck sake we could all be dead by the time reaches its conclusion. Knowing we were right will not serve as much comfort. 

 

 

Haus-Targaryen's picture

Yeah, I mean -- I had this fantasy: I'd wait for the "Deutsche Bank Files for Bankrtupcy Protection" or "Italy decides to leave the EuroZone" type of ZH headline, I'd be the first comment with "May God help us all" or something along those lines. 

I don't think it ever happens. I agree with guy down below though, I think I'll get my enjoyment from all the sheep eating their newly leased Lexus' leather because there is no food to be had, as they have to fight off the immigrants they voted into their own country in huge numbers burn their various nations to the ground. 

My only joy in this now will be schadenfreude.  I'll have truckloads of it.  

WVHillbilly's picture

Since I'm just an ignorant hillbilly...who exactly is getting the $500,000,000 a year in interest?  I thought it was other countries (China for one, maybe), but aren't their economies about as far in the shitter as ours?

Haus-Targaryen's picture

You are missing three zeros. 

The U.S.' single largest creditor is the Federal Reserve followed by the Social Security Trust Fund, followed by the PBOC and BoJ. 

Most (about half) goes there. 

WVHillbilly's picture

Oh, crap...I was missing 3 zeroes.  My bad, in too big a rush.  Told you I'm an ignorant Hillbilly :-)

 

Sadly, 500 million is scary enough...$500,000,000,000 is just unreal.

Nobody For President's picture

Don't feel bad hillbilly, I have trouble keeping up with all that nothin' too.

But I'm just another hillbilly these days also.

Basically, Mr. Snyder, other than you and me and a few other hillbillys, the answer is NO.

Nobody gives a shit about the national debt - Football season has started, damnit! So shut up, sit down, and have a beer and some popcorn.

Kozakman's picture

We're like a guy who jumped off a 100 story building, has fallen 80 stories and is thinking "well so far so good"....

Kalashnikov545's picture

I recently started working on my 3rd million dollars.  I have already given up on the first 2.

ejmoosa's picture

I believe that when one country buys the paper of other countries, the rightful term that should be used is called a 'tribute".

"payment made periodically by one state or ruler to another, especially as a sign of dependence."

When they no longer feel dependent upon us, the gig is up.

 

Anyone have this debt charted in terms of ounces of gold or silver?

JimmyJones's picture

So since the Federal Reserve is a corparation that has stocks, who owns the stocks?

ejmoosa's picture

I want to know who votes the shares?  Are they installing their own directors?  Are they pushing agendas?

Stuck on Zero's picture

The solution to worrying about the debt problem? Opiates.

Oldwood's picture

How can we care if our future has already been sold and consumed.

SafelyGraze's picture

this article has its fact totally wrong

when the gov borrows money, it spends that money into circulation

that's where money comes from, for crying out loud

as that money circulates, it passes through the hands of people like you and me

if the gov didn't borrow money, there would be any of it in circulation

this is so simple

what we need is a gov that is willing to borrow and spend significantly more money

that way, more money is put into the "money supply"

and that is how we get paid and then pay for our groceries and iphones

hugs,
john maynard keynes 

Jim in MN's picture

Fun fact: The basic soldier's pay, in terms of gold, is basically unchanged since the Roman Empire.

SWRichmond's picture

When will America finally wake up? 

When they can't buy food anymore, and not one second before then.  IOW, when the currency blows up.

c2nnib2l's picture

price of a new ford in terms on gold ounces haven't changed for the 100 of years :) 

rubiconsolutions's picture

I was about to red arrow you until I saw the signature. Almost got me. +1 for the sarcasm. 

HalinCA's picture

Yawn ....  money existed before central banks and before any government 'created' a penny.

Go back to sleep Maynard, and wake up when you figure it out.

Adam Smith

INTJ Economist's picture

True or not it doesn't apply to our current system since the US Gov't is the sole creator of USD and we are required by law to pay taxes in USD.

"Anyone can create money, the trouble is in getting it accepted." - Hyman Minsky

INTJ Economist's picture

You mean "borrows" since the US Gov't can't really borrow money from itself.

BennyBoy's picture

 

Unfortunately this is basically how the money system works; either the gov borrows or the private sector borrows, then money comes into existance.

Look at the cash in your wallet, they are all federal reserve notes, meaning debt created them (Hmmm, coins are not debt created!).

This fraudulent, bankster enriching financial system needs exponentially increasing debt to function. As the exponent upward curve getts steep recessions happen, bubbles happen, 2008 happens the next bubble popping happens....

 

JimmyJones's picture

They could just issue treasury notes again.  Technically there are 50,000,000 still in circulation. (they move from one bank to another bank)

Radical Marijuana's picture

SafelyGraze, your comment sounds like the foghorn of another ship passing the article above in the night ... I up-voted it due to your salutation: "hugs, john maynard keynes," as well as from that perspective you are correct.

However, I think that the article above was also right when stating:

"The Federal Reserve was actually designed to create a government debt spiral from which we could never possibly escape."

In my view, the underlying situation is almost infinitely worse than Snyder says. The "money" made out of nothing as debts was used to "pay" for strip-mining the planet's natural resources and turn those into pollution as fast as possible. The Federal Reserve Board, embedded in the overall international bankers' systems, was DESIGNED to enable turning Earth into garbage as fast as possible, while publicly presenting that as productive.

The bullshit-based public presentations of political economy promoted by the banksters are almost infinitely worse than most of the criticisms of that which are publicly presented by various controlled "opposition" groups, which surround the central core of bankster dominated governments, whereby the powers of public governments are primarily used to enforce frauds by private banks, and the big corporations that grew up around those big banks being able to issue the public "money" supplies, based on bookkeeping tricks, or magical mathematics, which amounts to legalized counterfeiting.

MONEY IS MEASUREMENT BACKED BY MURDER.

Political economy is INSIDE the human ecologies.

The death controls back the debt controls, and so,

any changes to the money systems must be backed

by corresponding changes to the murder systems.

The ONLY realistic resolutions of the real problems require recognizing what those real problems are: natural selection pressures have driven artificial selection systems to become as dishonest as possible, while about exponentially advancing physical science and technologies have enabled those trends to become about exponentially more dishonest. While the various controlled "opposition" groups present superficially correct analysis of the ways that civilization based on the excessively successful applications of the methods of organized crime through the political processes have driven that civilization to manifest runaway criminal insanities, the typical range of criticisms of that from various controlled "opposition" groups tends to grossly understate the degree to which that is necessarily so, which then enables those kinds of controlled "opposition" groups to NOT admit and address what kinds of alternative death control systems which might be able to maintain alternative debt control systems.

That is especially the case after there have developed globalized electronic monkey money frauds, backed by the threat of force from apes with atomic weapons. The prodigious progress in mathematical physics, such as in quantum mechanics and the special theory or relativity, which made harnessing electric and atomic energy possible, tends to NOT be more deeply considered by the various controlled "opposition" groups, since they firstly understate the ways that the combined money/murder systems have maximized maliciousness, and secondly, they shy away from how and why that happened, which is that there must be some death control systems, with murder systems as the most extreme manifestations of those.

Old-fashioned, mainstream economics, such as exemplified by the stands of Keynesianism astronomically amplified by the banksters, deliberately INVERTS everything as much as possible, so that "we" end up living in Wonderland Matrix Bizarro Worlds, which publicly present everything in the most absurdly backward ways possible. In particular, although mathematical physics, and its overwhelming experimental confirmation (such as that computers and atomic bombs work) was based on radically transforming how time and space were conceptualized, most of the controlled "opposition" to the entrenched economic systems are NOT interested in going through similar series of intellectual scientific revolutions.

Metaphorically speaking, the banksters now are running a political economy which can be traced back to Babylon. Moreover, "we" are still using the Babylonian ways of measuring time. Of course, the vast majority of the publicly significant controlled "opposition" groups are NOT able and willing to reconsider how deep that goes, particularly because doing so demands profound paradigm shifts in the ways "we" perceive the death control systems, as the only genuine ways to adequately change the debt control systems.

Authors like Snyder present the accumulating apparent anomalies with respect to sociopolitical systems based on ENFORCED FRAUDS, becoming exponentially more FRAUDULENT. However, Snyder, et alia, never come remotely close to the kinds of intellectual scientific revolutions which would be consistent with those already achieved in mathematical physics, which have enabled those ENFORCED FRAUDS to become atomic and electronic.

The political economy developed by Globalized Neolithic Civilization deliberately divorced the environment from that economy. Sine the entire economic system became based on public governments enforcing frauds by private banks, doing so demanded the vast majority of people not only would not understand that, but also, would be conditioned to feel like they did not want to understand that. The dominate natural languages and philosophy of science were based on the biggest bullies' bullshit, which became the banksters' bullshit. That language and set of philosophical presumption is based on the DUALITIES of false fundamental dichotomies and the related impossible ideals, which is the same overall frame of reference that the controlled "opposition" groups stay inside.

A genuinely more scientific economics should be based on UNITARY MECHANISMS, which understand human beings and civilization as manifestations of general systems, i.e., nested toroidal vortices engaged in entropic pumping of environmental energy flows. However, doing so drives pretty well everything to be perceived in ways which are opposite to the ways those are publicly presented. Ironically, the controlled "opposition," such as illustrated by Snyder, et alia, do NOT go to the opposite pole of their perception of false fundamental dichotomies, in order to establish any more genuine unity, but rather, continue to propose and promote spurious unity, based on going to the non-existent pole of their favourite impossible ideals.

Since "we" (as almost everyone adapted to living inside Globalized Neolithic Civilization) continue to take for granted thinking about time and space in absurdly backward ways, which necessarily means "we" also conceptualize entropy in absurdly backward ways, pretty well everything publicly presented by the core groups of triumphant organized crime, namely banker dominated governments, as well as the layers of their controlled "opposition," always recommend bogus "solutions" which are absurdly backwards.

Since the most socially successful murder systems were driven by the history of warfare, to develop the ideology of militarism, whose successfulness was based on becoming as deceitful and treacherous as possible, there are NO publicly significant genuine opposition groups. Rather, that social successfulness based on being able to back up deceits with destruction became the foundation for financial successfulness based on enforcing frauds, despite that progress in mathematical physics has enabled that to become about exponentially more fraudulent.

I REPEAT: since money is measurement backed by murder, to actually change the money systems requires changing the murder systems. However, doing so runs into the deepening dilemmas driven by the history of the most socially successful murder/money systems maximizing their maliciousness, to become as deceitful and fraudulent as possible. That is currently the cul de sac of human evolution. Natural selection pressures were internalized as human intelligence, which then was applied to the most important selection pressures, which were other groups of people. Therefore, the history of warfare became the basis of the history of economics. Human beings killing and eating other living organisms in order to continue living became a more and more complicated culture in which doing so was mediated by the ways money is measurement backed by murder.

Human beings live as reproducing gangs of robbers, while the biggest and best organized groups doing that are becoming about exponentially more dishonest regarding themselves doing that. Of course, that does not appear to be sustainable, because endless exponential growth is absolutely impossible. However, any revolutionary change of state to cope with those developments, regarding the accumulating apparent anomalies, demands series of intellectual scientific revolutions, which the vast majority of people are NOT interested in, because they are too busy attempting to adapt to living inside those systems based on enforcing frauds, rather than able and willing to consider that those are becoming exponentially more fraudulent.

Overall, Globalized Neolithic Civilization has become terminally sick and insane. It has become way too psychotic to cope with itself having done that. Social "realities" based on being able to back up lies with violence are becoming more and more detached from physical and biological facts. Civilization is headed towards suffering final failures from too much success based on being able to enforce frauds ... I am not aware of any publicly significant genuine opposition to that. Rather, there is nothing which is publicly significant other than various controlled "opposition" groups, such as illustrated by the series of articles republished on Zero Hedge from Snyder, as well as similarly so for almost all other regularly republished authors ...

Paul Kersey's picture

"Does Anyone Actually Care That The Exploding National Debt Is Destroying Our Future?"

Is it destroying the future of the man who claims to be "the king of debt"? Is it destroying the future of his billionaire financial engineering Administration? Exploding debt only further destroys the future of the 250 million Americans who have become human livestock for the ruling plutocratic class. There is $1.2 quadrillion worldwide derivatives market, owned and operated by the Kings of Debt. While it will destroy our futures, it has made them Kings.

Oldwood's picture

Our economy is sustained by confidence, confidence being the first and primary thing criminals rely upon corrupting. Our belief in money (something that only exists in our mind) is what gives it the power to destroy us.

ejmoosa's picture

I wonder how rich they would be if our economy had real growth of 4% for the last twenty years rather than the doctored growth of 2%.

yogibear's picture

Not a problem until the system implodes.

Offthebeach's picture

Let's get where we are going.  The sooner the crash, the better.

HRClinton's picture

Snyder, the ignorant or scared masses still don't care, and the depressed and demoralized remnants have rightfully checked out.

On behalf of the latter, let me say: "We can't go bankrupt fast enough.  Stop trying to save the GD Titanic!  Save yourselves and watch this ship of fools and cursed souls go down."

jin187's picture

Hoard ya gold, hoard ya crypto, dey rapin errbody up in hur.

yogibear's picture

No problem, what national debt? The Federal Reserve removed M3. Just ignore it as usual.

Midtown's Iconic National Debt Clock Is Coming Down -- for Now

The iconic National Debt Clock that broadcasts the nation's running tab from the southwest corner of 44th Street and Sixth Avenue is coming down, a spokesman for the developer family that installed it confirms to NBC 4 New York. 

http://www.nbcnewyork.com/news/local/National-Debt-Clock-Midtown-Manhatt...

 

Didn't this hapen to other failed empires?

 

Green2Delta's picture

The majority don't care or they're incapable of understanding. I'm now in my 40's, but when I was 30 (while serving in Baghdad no less) I began to teach myself about the Federal Reserve. Over the last 12 years I have repeatedly explained how central banks enslave all of us. Yet I can count on one hand the amount of people who've either paid attention or actually understood. My brother (who's tour in Iraq crossed with mine by 2 months), my 11-year-old nephew and my dad. All my friends with advancded degrees actually thought we were still on the gold standard. The rest listen, but immediately go back to quoting the story of the day that TV told them is so goddamn important. 

This rampant ignorance has left me very bitter towards humanity. I now find joy in watching people suffer from their stupidity regardless of race or religion. People are just so fucking stupid there's no helping them. 

Philo Beddoe's picture

Welcome to the club. 

Ignorance is bliss. 

There are perks to being stupid. 

konadog's picture

Are you telling me I can't get a govt. check every month for my cognitive privilege disability? That's waaccist.

Haus-Targaryen's picture

"I now find joy in watching people suffer from their stupidity regardless of race or religion."

So much this.