We Just Added Another $1 Trillion of Debt

If you and your wife had combined income of $100,000, how many years do you suppose you could spend more that you make and put $10,000 on your credit card while never paying down the principal?

If the interest rate on your credit card was 18% the payments could really start digging into your cash flow pretty significantly and would be painful after a few years.

And if the interest were 3% you might feel that you could continue to rack up credit debt for a few more years.

But ultimately, when your credit card debt got to $100,000 you might look at each other and say, "What have we done?!  We can't live like this any longer and in fact unless we can raise money by selling assets, we might lose everything!"  And this point I would hope they would realize that they have a serious lifestyle problem and commit themselves to change their habits.

It didn’t take long for the U.S. to rack up another trillion dollars of debt

It has taken a little more than six months for the U.S. national debt to grow by a trillion dollars, a quick clip that has little precedent over the nation’s recent history.

Last week, the debt hit $21 trillion for the first time, rising from the $20 trillion mark it notched on Sept. 8. The debt is guaranteed to go higher, with President Donald Trump having signed a debt-limit suspension in February, allowing unlimited borrowing through March 1, 2019. Economists expect wider deficits to result from the tax cut Trump signed in December.

While a trillion-dollar increase over roughly six months isn’t unprecedented — there was one in 2009, during the Great Recession, and another in 2010 — it’s certainly fast.

The national debt exceeded $20 trillion in September 2017, after taking 20 months to add a trillion dollars. A debt limit that had been in place since March 2015 was raised in March 2017, and again on Sept. 8, 2017.

Farther back, however, such trillion-dollar increases took longer: 43 months, for instance, near the end of Bill Clinton’s first term.

The first time the nation’s debt hit $1 trillion was in October 1981, during Ronald Reagan’s first term.

Looking ahead, analysts see the nation much deeper in debt. The Committee for a Responsible Budget projects trillion-dollar deficits returning permanently by next year, and debt exceeding the size of the economy within a decade.

https://www.marketwatch.com/story/it-didnt-take-long-for-the-us-to-rack-up-another-trillion-dollars-of-debt-2018-03-20

Because of numerous circumstances that smell a lot like a Ponzi scheme, America currently only has to pay about 3% on it's $21 trillion of debt...BUT....when the world refuses to carry that debt at 3% and raises it to 5% or 7% or even 10% to reflect our credit risk....what do you think might happen?

Do you see any politicians trying to get elected by telling us that bankruptcy, struggle and hardship are staring us in the face unless we do something drastic and painful...and do it quick?

Nope.

The only politicians that people are willing to elect would be the ones who tell us what we want to hear.

"Don't worry friends!  America is great and always will be!  We are going to provide free health care, free food, free apartments and free nursing homes to everyone AND we are going to increase our military budget so we can continue to defend the world against tyranny AND we are going to spend $1 trillion on improving our infrastructure!  And if that isn't enough, WE ARE GOING TO CUT YOUR TAXES TODAY SO YOU WON'T HAVE TO PAY FOR ANY OF IT!!"

"Yea!!!", said all the sheeple....seeming to not have a care that none of it really makes any sense.