The United States national debt is stupendous. Deficit spending is egregious. Enormous. Unfathomable. Who among us can possibly grasp the true quantity of $Trillions… Apparently no one cares.
I tend to update this every year. Here’s the 2020 update.
The US national debt has increased from approximately $400 Billion in 1971 (when Nixon entirely unhinged the dollar from the gold standard) – to $27 Trillion in 2020. Apparently no one cares.
The gold window was officially closed in 1971 when the U.S. monetary system became one purely of fiat currency. Deficit spending was unleashed. And ever since then, government has been spending as though there will never be any negative consequences. Deficit spending became the new normal. No one cares.
The last time that there was actually a reduction in the US national debt was during 1951 under President Truman (source).
No Consequences For Out Of Control Government Spending
One would think there would be consequences for such deficit spending (see US National Debt graph below).
There appears to be no consequences. And certainly no end in site. Ginormous government spending continues. Massive money printing (mostly digital dollars) while more and more debt is piled up. It’s actually happening worldwide on a massive scale.
So does it actually matter?
What if you and I spent like this?
Oh wait… that’s right… we can’t print our own money. Wouldn’t that be nice?!!
Banks will lend you money, but only up to a point at which they calculate you can eventually pay it back. Banks need you to pay it back. With interest (their profit for lending you the money).
Yes, the US is paying the interest back to “the bank” (the Federal Reserve – a central PRIVATE banking cabal). However there is no way on this earth that a fraction of this debt will ever be paid. Ever. Never.
The interest rate on this massive pile of borrowed money MUST be kept very, very low — otherwise there will be default. Wouldn’t it be nice if we could call up our bank and demand a very low interest rate? And while we’re on the phone, ask for more, and more money on a regular basis?
The U.S. government (and many state and local governments) seem to be able to spend and spend without repercussions. How is that?
Governments sell their debt all over the place – including to other countries, to big investors, and even the Fed itself which is on the hook for Trillions. But the scheme just keeps on going. Seemingly never a hiccup.
More debt? No problem!
The government does not need to turn a profit to stay “in business”. The money for government just comes in like magic. Must be nice to spend other people’s money. No one cares.
So does it even matter? (spending Trillions more in debt each year?)
Here’s how the presidents line up with deficit spending since entirely going off the gold standard in 1971.
|Trump (so far…)||4||$7.2 T|
|Bush G.W.||8||$4.3 T|
|Bush H.W.||4||$1.4 T|
The numbers keep getting bigger. But hey, that’s no problem for Uncle Sam. Just borrow more from the Fed. Print some more. Keep feeding the beast.
The deficit spending chart above is clearly ridiculous. But they’re getting away with it. No one cares.