Thursday, March 22, 2018

US Debt Climbs By a Trillion in Six Months!

Welcome to Trump world, where you borrow until you can't anymore.

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, writes Robert Schroder.

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.

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.

Please note: This isn't about screwing kids in the future. It is about us being screwed now. The borrowing will crowd out the private sector, meaning savers will end up buying Treasury debt instead of financing productive private sector debt or the Fed will monetize the debt by buying it and putting further price inflation pressures on the economy. Either way, we are going to get screwed in the here and now.

-Robert Wenzel 

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