US National Debt Hits $21 Trillion

For 8 years, we took every opportunity to point out that under Barack Obama's administration, US debt was rising at a alarmingly rapid rate, having nearly doubled, surging by $9.3 trillion  during Obama's 8 years. It now appears that the trajectory of US debt under the Trump administration will be no different, and in fact based on Trump's ambitious fiscal spending visions, may rise even faster than it did under Obama.

We note this because as of close of Friday, the US Treasury reported that total US debt has risen above $21 trillion for the first time; or $21,031,067,004,766.25 to be precise.

Putting this in context, total US debt has now risen by over $1 trillion in Trump's first year... and the real spending hasn't even begun yet.

What is amusing is that Trump - who has a tweet for every occasion - and who no longer even pretends to care about the unsustainability of US spending was extremely proud as recently as a year ago by how little debt has increased during his term.

We doubt today's milestone will be celebrated on Trump's twitter account.

And while some can argue - especially adherents of the socialist Magic Money Tree, or MMT, theory - that there is no reason why the exponential debt increase can't continue indefinitely...

... one can counter with the following chart from Goldman, which shows that if one assumes a blended interest rate of roughly 3.5% as the Fed does, and keeps America's debt/GDP ratio constant, in a few years the US will be in what Goldman dubbed "uncharted territory" and warned that "the continued growth of public debt raises eventual sustainability questions if left unchecked."

The bad news, however, is that debt/GDP will not be constant, as the CBO recently forecast in what was actually an overly optimistic prediction.

Comments

Aegeas Du'Augloth BaBaBouy Fri, 03/16/2018 - 21:41 Permalink

Please remind me again why I need to pay taxes every year when our government just creates money out of thin air ? I mean can't they just conjure up a few thousand to cover me too ? I'm so fucking sick of being a slave/tax donkey.

Oh btw, I don't owe my portion of shit ! $21 trillion is an odious debt under duress & inflation of my dollars can suck my dick because I'm going off grid as soon as I can liquidate.

FUCK YOU  Uncle Sam you baphomet goat looking mother fucker !

In reply to by BaBaBouy

Give Me Some Truth BettyLouWho Fri, 03/16/2018 - 23:53 Permalink

The National Debt increased by half a trillion dollars ($500 billion) in the last six weeks ... and the price of gold and silver declined. 

Talk about a government program that worked - the program to kill sentiment for monetary metals ( aka, the competition to fiat/digital money).

Bottom line: This doesn't even matter anymore.

In reply to by BettyLouWho

mailll NugginFuts Sat, 03/17/2018 - 01:21 Permalink

While we all grew up believing we had to work hard for our money, now we're learning it's all fake.  We work hard for our money, and the fed just prints it out of nothing.  It's all a lie.  We don't have to go to work for our money, we can just be handed this free money for doing nothing, except for going along with this misleading agenda, whatever it may be.  Money is a lie, and money isn't the answer.  Our humanity has a long way to go before we figure this out. 

In reply to by NugginFuts

HenryJonesJr AustrianJim Sat, 03/17/2018 - 10:10 Permalink

The National Debt is an illusion.   At some future moment when the National Debt becomes problematic, the Federal Reserve will absorb all of it onto their magic "books" then re-issue new dollars to the US government.   Presto the government debt will cease to exist and the government will have newly minted electronic digits to pay their debts.   This is exactly what happened in 2008.   The Fed absorbed $14.7 trillion dollars onto their magic "books" and lent heaps of new dollars to banks-to-big-to-fail at near zero interest rates which is fueling the stock market boom.  Money is just an illusion at the top of the food chain.

In reply to by AustrianJim

Weirdly JustPrintMoreDuh Fri, 03/16/2018 - 20:08 Permalink

I remember saying every income taxpayer owed $75,000 in national debt 10 years ago.  I thought that number was huge and everything was going to collapse when they realized no one was getting paid back.  But no.  Here we are up to $150,000 in debt per income taxpayer and nothing.   Fuck it.  I know I don't know.  Land, gold, silver, guns, friends and a few bitcoin.  

In reply to by JustPrintMoreDuh