At $21 Trillion, The National Debt Is Growing 36% Faster Than The US Economy

Authored by Simon Black via SovereignMan.com,

Well, it happened again.

On Friday afternoon, the national debt of the United States hit another major milestone, soaring past $21 trillion for the first time ever.

Clearly that is an enormous number… it’s actually larger than the size of the entire US economy, which is pretty incredible.

But what’s always been the more important story about America’s pile of debt is how rapidly it’s growing.

For example, in the span of a SINGLE DAY, from Thursday to Friday, the national debt grew by $73 BILLION. In a day.

To put that number in context, $73 billion is larger than the size of most major companies like General Motors, Ford, and Southwest Airlines.

And in the month of February alone, the national debt grew by an astounding $215 billion.

$215 billion is larger than the GDP of New Zealand. Greece. Oregon. More than twice the size of the GDP of New Mexico. Just in a single month.

Most disturbingly, the national debt has grown by more than $1 TRILLION… just in the last SIX MONTHS.

I’m scratching my head right now wondering– where did they spend all that money? Was there a major economic crisis, wave of bank failures, or severe depression that required massive fiscal stimulus?

Nope. It was just business as usual.

Even better, the economy was supposedly doing totally awesome over the last six months.

And yet, even with all that positivity, the government still managed to rack up an extra trillion dollars in debt.

Amazing.

One important point to make is that debt growth is VASTLY outpacing GDP growth. And this is critical to understand.

Last year, for example, the US economy grew by 2.5% in ‘real’ terms, i.e. stripping out inflation.

Even if you include inflation in the calculation, the size of the US economy increased by 4.4%. Yet the national debt grew by 6%.

Now that might not seem like a big difference. But it is. On a proportional basis, the national debt expanded 36% faster than the US economy (even if you include inflation).

Over the course of several years, that effect compounds into something that’s quite nasty.

At the end of 2008, for example, the size of the US economy was $14.5 trillion. A decade later, the size of the economy is $19.7 trillion, 36% greater.

Yet over the past ten years, the national debt has grown from $9.4 trillion to over $21 trillion– a growth rate of 123%!

It’s really, really hard to pretend that this is good news.

But that doesn’t stop people from trying.

We’re constantly being told the same old nonsense that “the debt doesn’t matter” because we owe it to ourselves.

And, sure, it’s true that the US government owes a lot of this money to various institutions across America. Like Social Security. Or the US banking system. Or the Federal Reserve.

I find it difficult to see the good news here… as if it would somehow be beneficial to default on (and hence bankrupt) Social Security. Or the US banking system. Or the Federal Reserve.

Doing so would cause the most drastic financial cataclysm ever before seen in the United States.

So… yeah, the debt does matter.

Yet these major milestones are simply yawned off now, as if trillions of dollars in new debt is just par for the course. And that’s pretty sad.

Most people are in one of three camps when it comes to the debt.

#1: They ignore it altogether, and stick their heads in the sand (or up somewhere else).

#2: They acknowledge the debt, but tell themselves fairy tales that it doesn’t matter… or that the government is going to somehow ‘fix’ it. (which is ridiculous given that the government is the one causing the problem to begin with.)

#3: They view the situation rationally and understand that, maybe, just maybe, at some point in the future, there might possibly be some consequence to arise from the largest debt pile that has ever been accumulated in the history of the world… and they make sensible preparations just in case.

Which group are you in?

And to continue learning how to ensure you thrive no matter what happens next in the world, I encourage you to download our free Perfect Plan B Guide.

Comments

NugginFuts COSMOS Mon, 03/19/2018 - 22:44 Permalink

Remember the good ole days when the Democrats passing a $1T stimulus was cause for Republicans to get up in arms and fight tooth and nail? Remember how it sparked the Tea Party? Remember how the bank bail outs created the Wall Street protests?

 

And what do we have now? Crickets. It's either too late to change our course or people no longer care.

In reply to by COSMOS

uhland62 alurker Tue, 03/20/2018 - 00:00 Permalink

That's right. He'll enable us to go to Mars where we do not have to pay back that debt for all the wars, global leadership, free world, Full Spectrum Dominance, and bringing democracy to people who don't know that the two-party-system is their salvation. 

Nothing to see there, though. It's only about $ 72,000 debt for each and every American, man, woman, and child. Peanuts to pay back. 

In reply to by alurker

FIAT CON junction Tue, 03/20/2018 - 00:15 Permalink

Keep up with the printing and I'll use it to burn in my wood stove, just like Weimar. History repeats...NO?

 This shit show is a game of Fiat musical chairs...Which Country collapses first? When the music stops, there is no way out of this mess besides default.... Sure we can use the SDR but it is also Fiat, the music may play again but not for long. 

At some point people must realize this Fiat Con is soon to be over.

In reply to by junction

Disgruntled Goat Mon, 03/19/2018 - 20:43 Permalink

But look at how many genders we have now !!!!

Surely that must count for something!

Not to worry .... The White Middle Class will pay for it all ..... just keep on shipping in those mud people !

MFL5591 Mon, 03/19/2018 - 20:45 Permalink

Put the blame squarely where it belongs.  Corrupt politicians and the Federal Reserve .

Yes McCain, Graham and Bush I am talking about you and your war machine! And Goldman Sachs and JP Morgan. 

rejected MFL5591 Mon, 03/19/2018 - 21:30 Permalink

lol,,, Actually the blame belongs to us, as we allow them to get away with their lawlessness.

By not screaming our heads off,,, marching on Washington... everything will continue to deteriorate until you're nothing more than a prisoner in your own country.

Voting once or twice every few years doesn't exactly scare them much as they are the ones that pick your choices.

Rigged from the get go.

Yea,,, MAGA..........

In reply to by MFL5591

Snout the First Justin Case Mon, 03/19/2018 - 21:26 Permalink

You place a Purchase Order to the MIC for tanks. The miners, steelworkers, rail workers and machinists all get a salary, and pay taxes on it. And at the end of the day, you have some tanks.

You give free stuff to a million recipients of the Welfare State, and what do you have to show for it? That million grows into a million and a half people with neither the intention or ability to contribute to society.

Both are bad, but one is worse than the other.

 

In reply to by Justin Case

FIAT CON Justin Case Tue, 03/20/2018 - 00:20 Permalink

" The trillions that go to MIC, whatcha got to show for that? "

Well we have a fuck of a lot of brown and black people that will not assimilate, follow laws and contribute to the western life.

Oh I left out, they Rape little boys and girls. I sure wish some would gang rape M- e  -rk _el give her a taste of what she has done. 

In reply to by Justin Case

dchang0 Mon, 03/19/2018 - 20:47 Permalink

"We owe it to ourselves" really means "grandkids and great-grandkids are supporting their grandparents' lifestyle." 

This is intergenerational warfare.

Ajax-1 dchang0 Mon, 03/19/2018 - 21:01 Permalink

IT'S GENERATIONAL THEFT. When I was a kid, I used to see bumper stickers on RV's that read: "We are Spending our Children's Inheritance". Adjusted for inflation, these bumper stickers should now read: We are Spending our Great Grandchildren's Inheritance". I can only hope that they are proud of the destruction that they have bestowed upon their posterity.

In reply to by dchang0

Yen Cross Mon, 03/19/2018 - 20:50 Permalink

 Tyler I can't thank you enough for posting an article like this.

 I've often commented on the intersection of financial growth and central bank devaluation.

   I think we've reached the financial " singularity".