In a USA Today article by John Waggoner, he shares with us the US regime now owes a shocking $11.4 trillion bucks. That works out to be roughly $37,000 per individual in the united states and it doesn't stop there. The govt is slated to add an additional 15.78% more in debt - $1.8 trillion bucks - in the following fiscal year. And that isn't including interest on the debt we already have.
So, what does this mean for the US economy? Well, the options aren't pleasant.
First, it'll probably mean a rise in taxes, a dip in what we spend in the future or most likely both. And, it'll potentially also lead to inflation.
First, we will need to increase the amount of money we have coming in to begin to pay off the debt we owe. How does the US state get cash loans to pay down this debt? Through taxes. Somebody, somewhere, somehow will need to pay this money back which will come from some type of tax increase.
2nd, like many individuals who have been living beyond their means are learning in our new economy, we need to stop all spending more than we are bringing in. The US government, apparently, has still to learn this lesson. The govt will have to cut down on what it is spending, which will mean either huge improvements in efficiently allotting
money and/or a major decrease in what they are providing.
we intend to likely see a combination of both : increases in taxes and less services for it. So, if you are the vocal complaining type, get prepared to start griping about having to lay out extra for less because that's where we are headed.
Another way to reduce the burden of our nation's's overpowering debt is to permit or perhaps inspire inflation. If you owe $13 trillion bucks, it's way easier to repay that debt if $13 trillion greenbacks isn't worth the cash advance that it used to be. If folks working at entry-level positions are earning $500,000 per year because of inflation ( which i hope is a gross exaggeration of my point ), then paying back $13 trillion will be very much easier to do. And that is a part of the difficulty.
There are massive incentives for the regime to not only let inflation occur but to essentially encourage it as the amount it owes balloons beyond control. While it is certainly hideous stories for the savers of the planet or those that are living on fixed revenue, for those who have taken on large amounts of debt or invested in inflation friendly investments, they can rest comfortably on the same side as the US govt where inflation might be working, at least partially, in their favor.
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