National Debt Spiral Starts Circling the Drain

We have written about this so many times warning of the day it would come, but it seems that day may be here.  The Federal government now has no choice but to borrow money simply to pay the interest on the debt they already have.  Think about a family that has to get a cash advance from one credit card to pay the interest on another...it’s unsustainable.  No nation in history can survive once their debt exceeds 130% of their income and we are there.  We aren’t sure how this will all go down but we are reminded that Jesus told us that the world will be pretty much normal right before the rapture, buying, selling, eating, planning weddings, etc...so we can hope that America stays intact until the trumpet blows.  Even now it may be solely the hand of God holding together our “faith And confidence” in the US Dollar.

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With all the chaos and heartbreaking loss of life around the world today, few noticed the Treasury Department drop a financial bomb: The deficit for fiscal year 2023 was $1.7 trillion, growing 23 percent in a single year as the Treasury used $879 billion just to service the federal debt. But "Bidenomics" means the worst is yet to come, and multi-trillion-dollar deficits are the new normal.

The impetus for these massive deficits is federal government spending, which tipped the scales at $6.1 trillion last year. Government receipts, meanwhile, were $4.4 trillion, woefully short of the $5 trillion previously forecasted. A slowing economy and counterproductive tax increases were key drivers behind the $457 billion drop in receipts from the prior fiscal year.

Yet, even these reduced revenues would have resulted in a balanced budget if President Biden had simply allowed spending to return to its pre-pandemic level. Instead, Treasury outlays are up 38 percent today compared to pre-pandemic times.

That’s why it’s so deceptive for the Treasury to have recently announced that the deficit is $1 trillion lower than when Biden took office. Elevated spending levels in 2020 should have been one-time emergency measures, but the Biden administration institutionalized $6-trillion budgets by simply replacing pandemic-era outlays with the Biden agenda.

But just looking at the spending that is officially included in the last fiscal year is terrifying. It has resulted in a truly unprecedented level of federal debt: now more than $33.5 trillion. The breakneck pace of borrowing is increasing almost daily, with the Treasury borrowing $500 billion just in the first three weeks of the current fiscal year, which began Oct. 1.

As the federal debt and interest rates rise, the cost of servicing the debt has completely exploded, eclipsing all but two line items of the Treasury’s report: the Social Security Administration and the Department of Health and Human Services. Interest payments even surpassed all military spending in the bloated Department of Defense budget by $103 billion.

 https://www.foxbusiness.com/economy/treasury-dropped-financial-bomb-bidenomics-means-worst-yet-come