An Uncanny Debt Can.
By Gene W. Edwards.
Posted, 5/22/2023.
The words I get today are, “Watch debt ceiling impasse!” This Mexican standoff has been going on for months, particularly since the day McCarthy was voted Speaker of the House. He’s been muzzled by some 25 Republican extremists in that chamber . . . and they are holding this nation hostage to their idea of legislation, budget, and world economics.
Can public debt (our national debt) run on endlessly? Can debt be dissolved by the wave of a hand, a wand? Debt is imprisoning. Look at what the 25 extremists have on us, waving a Damocles’ sword over the nation’s head as if this nation’s good faith and credit mean nothing!
When both chambers of Congress are back in session to resume debt limit negotiations at the end of this month, watch the fireworks! Value Biden’s input. The default crisis will be avoided only at the last minute, and I’ve been predicting that for months! Gold should make a nice jump in price before the debt-ceiling bill passes. A compromise will be found in which the debt ceiling is raised but, later, the 2023–2024 fiscal year budget (October 2023 through September 2024) is closely examined by both parties, and new priorities set.
Alarm! We spend six trillion a year but only take in 4.5T. All the rest is a lie, that we’re paying anything back! Go to usdebtclock.org to look at the numbers. Look at who owns our debt, bought our bonds. In short, our nation owes 31.8 trillion dollars, and 7.28 trillion dollars of that debt is owned by foreign countries, including China. Look at our present currency and credit derivatives gambles: $651,945,000,000,000 is out! Look at our national assets: $187,928,000,000,000. Look at all our unfunded liabilities, etc.; look at the big picture.
We’ll come so close to default this time, our nation’s bonds will probably be downgraded to “riskier,” which drives up the interest rate we pay on our bonds when they are regularly auctioned off (sold) by the Federal Reserve to the lowest interest-yield bidder. Presently, we’re paying 571 billion dollars a year in interest on our debt, which runs up the yearly national debt number. If our present budget is running 1.5 trillion dollars a year in the red, one-third of that amount is interest. That 571 billion may soon take a sharp increase.
I’ve been predicting we hit a wall at 34T dollars of public debt. Our level of growing national debt is unsustainable!
Thus, when we kick the debt can down the road this time, we luck out — but only until the next time. Debt is slavery. Our public debt now equals (it is 31.8T) 159 rows of $100 bills laid end-to-end from the earth to the moon, which is utter madness! If you want to know my political party, I’ll summarize it for you: I am a fiscal conservative. Taxing and spending must be equal. We must construct taxes in such a way as to, within 10 years or so, pay back our national debt. Until then, don’t hold your breath during the next national debt-limit crisis. You might suffocate in an avalanche of bills, never to reach the freedom of air again when the debt can is empty, rather than full of new money, access to new money, and the debt pyramid edifice collapses.
A canner quite canny, remarked to his country, “A canner can kick the debt can down the road by the trillion, but a canner can’t pay back one cent of it, can he? Canner can out of money.”
Love,
Gene.
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