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Guess how many Trillions the US government borrowed last year? (You're wrong – it was more.)

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Picture above - interest on the national debt has gone up 5X. If this was global warming, we'd be dead by now.

Level set: The national debt is $34 trillion. Most of that is Treasury Bills, sold to investors (both foreign powers, and institutions). Guess how much in T-Bills the US sold last year?

Um . . . you almost certainly guessed wrong. It was $23 Trillion. (see link below). Don't feel bad. I got it wrong too. I forced myself imagine the MOST ridiculously high number I could. $10 trillion. About 1/3rd of the National debt. I was off by 100%. It was $23 Billion. 2/3rds. WTH !!! How is this even possible?

Here's how: . . . old (low interest rate) T Bills mature, and are redeemed by the buyers. The government HAS to give the buyer his money back (with interest). And since the US can't really afford to buy it them back, it just turns around and immediately issues more T-Bills.

If this was ALL that was happening, no problem. But the interest rate on T Bills has gone from around 1% (2020) to 5% today. So now 2/3rds of our national debt costs 5 times what it used to. I know . . . those are confusing numbers. Here's an easy way to think about it. Interest payments are now the single biggest part of the federal budget. Far more than defense, social programs (welfare and healthcare) and anything else.

So, bottom line . . . what's this mean for you and me? One of two things.

  1. Either the government has to borrow even more (A LOT MORE) to pay that 5X interest on our national debt. Borrowing just to pay the interest. Like taking cash advances on your credit card just to make the minimum monthly payment. Or . . .
  2. Raising taxes dramatically. Really high.
If you're like me, neither of those look they should be plan A. Or even plan B. Borrowing more and more just to pay the interest rate on our debt is a death spiral. Hyperinflation is the endpoint. The only guys left with money will be the ones who own land or gold. All financial instruments will crash. A big mac will cost $20. Wait . . . my bad . . it already costs $18 in some cities.

At this point, someone is going to start shouting “Raise corporate income taxes”. Okay . . . go ahead and try. I dare you. US companies already pay MUCH more in tax than half of the EU members. We even pay more than quasi-socialist states like Sweden and Finland. The faster we raise taxes, the faster US jobs move offshore. Just ask Elon Musk or Apple how this works. Most of their stuff is now manufactured outside the USA.

When you examine “civilized” countries with higher corporate tax rates than the USA, you find their unemployment rates are higher and their economies are stalled in neutral (or worse). Japan. Italy. The UK. France. The Netherlands. Germany has shifted almost ALL of its car production (for American consumers) to the USA because of high German taxes. Want to see those Audi/BMW/VW/Mercedes factories return home? Just double US taxes on them . . . it's that easy.

There is a possible way out. Just stop overspending on stuff we don't need and don't can't use. We should be thinking of this as Plan A. Close half of our 800 global military bases. No more jet bombers that cost $2 billion each. 11 aircraft carrier task groups are more than enough. Stop handing out grants to everyone who promises to deliver a huge block of special interest votes. Stop paying billions a year for the food, clothing and shelter of illegal aliens – secure the border instead. They won't ALL fit in New York . . .

All this sounds harsh, certainly. But it's not as if we weren't warned. People good at math have been sounding the alarm for years. Those alarm bells became deafening when congress passed out trillions as “stimulus” after forcing businesses to close during the pandemic. We've always known this day was coming. Don't deny it.

I'm just sayin' . . .

The $27 Trillion Treasury Market Is Only Getting Bigger | Morningstar
 

RickWA

Snagglesooth
We need to repeal the Bush/Trump tax cuts that were doled out to the fatcats, no?
How does this help with the protracted drunken sailor spending profile? Why don’t we try something sensible - like…if you can’t afford it, you don’t buy it. I understand this is problematic to the underachieving shiftless parasitic moochers of this nation. It is, however, what is needed.

Get to work.
 

Bugsy McGurk

President
How does this help with the protracted drunken sailor spending profile? Why don’t we try something sensible - like…if you can’t afford it, you don’t buy it. I understand this is problematic to the underachieving shiftless parasitic moochers of this nation. It is, however, what is needed.

Get to work.
From that babbling it seems safe to deduce that you oppose repealing the massive Bush/Trump tax cuts to the fatcats, which is the question I asked.

I trust you will spare us any whining about the large deficits.
 

RickWA

Snagglesooth
From that babbling it seems safe to deduce that you oppose repealing the massive Bush/Trump tax cuts to the fatcats, which is the question I asked.

I trust you will spare us any whining about the large deficits.
And once again, the soul-sucking leftist cannot conceive of addressing ongoing government binge-spending. This is because leftists are parasitical leeches, hellbent on stealing from others. Enjoy your hammock time, shiftless mooch.
 

Bugsy McGurk

President
And once again, the soul-sucking leftist cannot conceive of addressing ongoing government binge-spending. This is because leftists are parasitical leeches, hellbent on stealing from others. Enjoy your hammock time, shiftless mooch.
As you know, no one said any such thing about spending. But being a diehard, devoted Trump cultist, you just can’t resist telling ridiculous lies.

You also can’t resist dodging the questions put to you. But I wanna go for the hat trick in getting wingers to dodge, so here’s the question again…

Do you oppose repealing the massive Bush/Trump tax cuts that were doled out to the fatcats?
 
How does this help with the protracted drunken sailor spending profile? Why don’t we try something sensible - like…if you can’t afford it, you don’t buy it. I understand this is problematic to the underachieving shiftless parasitic moochers of this nation. It is, however, what is needed.

Get to work.
A study - i think it was in 2000 - confirmed that you could tax the wealthiest 1% of americans at a rate of 100% (take all their income), and still have a budget deficit.
 

RickWA

Snagglesooth
A study - i think it was in 2000 - confirmed that you could tax the wealthiest 1% of americans at a rate of 100% (take all their income), and still have a budget deficit.
There is no amount of wealth confiscation nationally that will sate our government’s appetite, nor can it ever be enough to sustain its profligate binge-spending. This is then fortified with a carefully curated class of suckling statist sows. The people clamor for more of the same.

It simply is not sustainable no matter how one addresses the revenue side of the equation.
 

Dawg

President
Supporting Member
From that babbling it seems safe to deduce that you oppose repealing the massive Bush/Trump tax cuts to the fatcats, which is the question I asked.

I trust you will spare us any whining about the large deficits.
Threadjacking #2

Joey's budget is $7.5Trillion and all you post of is Bush/Trump and nothing of Joey's tax cuts
 

Dawg

President
Supporting Member
As you know, no one said any such thing about spending. But being a diehard, devoted Trump cultist, you just can’t resist telling ridiculous lies.

You also can’t resist dodging the questions put to you. But I wanna go for the hat trick in getting wingers to dodge, so here’s the question again…

Do you oppose repealing the massive Bush/Trump tax cuts that were doled out to the fatcats?
Threadjacking #3
Start your own thread and 86 your question
 

Bugsy McGurk

President
i'm tired of being stalked by morons who refuse to supply any links. you're a pox on this site.
You know all about the massive Bush/Trump tax cuts for the fatcats. Asking for a “link” to them is simply a way for you to dodge my question. Say that you’re open to my proposal and I would happily provide the education you say you need.
 

Bugsy McGurk

President
which tax cuts? do you have a link?
BTW, here’s a recent post I made about this very topic, along with a link to the tax cuts in question…


That thread was completely ignored by you and your winger colleagues.

The link to the Bush/Trump tax cuts, which you all ignored…


You people are clearly not genuinely concerned with the large deficits.
 

Dawg

President
Supporting Member
You know all about the massive Bush/Trump tax cuts for the fatcats. Asking for a “link” to them is simply a way for you to dodge my question. Say that you’re open to my proposal and I would happily provide the education you say you need.
Threadjacking #4
 
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