The Nomad Economist: The US Budget Deficit Blows out of Control

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The Nomad Economist
Premiered Jan 12, 2022

The US federal government ran a budget deficit of over $1 trillion . All this while The government debt currently stands at $23 trillion, if we divide this by the total population of America, then we get a $70293 debt burden for each and every American citizen, including newborns.

In December, The US Treasury spent $13.3 billion more than it pulled in, and while the month’s budget deficit was moderately better than the $15 billion anticipated, it was practically unchanged from the $13.5BN deficit recorded in Dec 2018. Total December spending of $349 billion, was 7.5% higher than a year earlier, with the biggest outlays for the month as follows. Social security ($88BN), national defense ($62BN), Health ($49BN), Income Security ($39BN), Net Interest ($34BN), which was more than Medicare spending for the month ($26BN) and so on. But spending didn’t slow in the first quarter of fiscal 2020. Through the first three months of the current fiscal year, the deficit bubbled to $356.6 billion. That’s an 11.8% increase from a year ago and puts the deficit on track to eclipse $1 trillion in this fiscal year. In just three months, Uncle Sam blew through $1.16 trillion. Spending through the first three months of the fiscal year 2020 is up 6.5% over the spending through the first three months of fiscal 2019. What could go wrong?

The end always has a beginning. 50 billion per month just on the interest. Printed and added to the debt. The snake is eating its’ tail. And this is only the deficits that they will admit exists. I would bet there is off the books debt somewhere so the numbers don’t scare people. Just look at the US Government Current Account Deficit that shows current obligations. This years budget deficits aren’t even paying for that. They are paying for LAST YEARS. With all the off-budget items in 2019. The deficit was closer to $1.6 trillion. That’s why the actual debt goes up by more than the deficit every year. Using basic maths and common sense, the ordinary person can see that printing money and fixing interest rates is nothing more than theft from society. We need a modern day Robin Hood to return this stolen wealth to the people.

The US MMT (Magic Money Tree) will no doubt be shaken down by ‘pork barrel’ politics, but it will not save the corrupted system. It is not the end of the beginning but is the beginning of the end for the fiat debt based system! Used to be, Buy a cow, sell the milk. Or, Don’t eat a chicken, sell her eggs. Make a profit. Used to be, you could afford to pay a reasonable interest to borrow the capital to do these jobs. Today, no one earns much profit. They just buy their own stock to drive up the price and earnings. People are replaced by machines, people not needed, kablooey, no money to buy milk or eggs. Or pay rent. Think this is sustainable? It ain’t.

If interest rates went back to normal, the global financial system would collapse, and most governments would be bankrupt overnight. The debt service costs would eat up every dollar of tax revenue and then some. The only way you get back to “normal” is through a giant reset. Write off every dollar of debt that was created since 2009. That would be a good start.

During his campaign Trump promised he would eliminate the deficit in 8 years. Promises made, promises kept. All this “prosperity” Trump talks about wouldn’t be there if not for the ability of the Federal Reserve to export the US Government debt via the petrodollar. This can’t go on forever. Or can it.

https://www.youtube.com/watch?v=a9Iky34Bd4Y

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