America's Foreign Bankruptcy...

The US Bubble Economy continues to hide behind surging Debt and Government Spending asnoted by Daniel LaCalle...

The increase in Gross Domestic Product between the third quarter of 2022 and the same period of 2023 was a mere $414.3 Billion, according to the Bureau of Economic Analysis, while the increase in Public Debt was $1.3 Trillion ($32.3 to $33.6 Trillion, according to the Treasury). Do The Math...

The United States is in the worst year of growth, excluding Public Debt accumulation since the 1930s. It's apparent that total Public Debt isn't slowing down.

According to thelatest monthly statement from the Treasury Department, the total Budget Deficit for the 2024 Fiscal year (which began October 1) has already risen above $380 Billion. The new total, which includes the months of October and November puts the US on track for a total Annual Deficit of $2 Trillion by the end of the Fiscal year. That'd be an increase of 25% over 2023 Fiscal year, itself a 23 percent increaseover 2022.

A 2024 Annual Deficit of $2 Trillion would make2024's Deficitthe third-largest Deficit behind only 2020 and 2021 during which Spending in Covid-related Social Benefits were seemingly unlimited.Comparing the same two-month period over the previous decade, the totals also suggest Deficit Spending in 2024 will lag only the Covid-19 years of 2020 and 2021. During the first 2 months of Fiscal year 2021, the Deficit came in at more than $429 Billion.

The American Debt Train Wreck isn't slowing. After reaching$33.1 Trillion at the end of the third quarterthis year, the total Debt will reach $34 Trillion by the end of this month. The US will add more than $7Trillion to its Debt since 2020. It's noted that total Revenue for the US the 2023 Fiscal year was $4.4 Trillion. (Total Debt in FY 2023 topped 38 percent of all federal receipts.)

The American Public, Taxpayers and Consumers are numb to Debt numbers since it has long felt like "Free" Money. From the 2000's to 2022, real Interest Rates were 0% which means the US Government borrows money at rock-bottom Rates, maturing Debt paid with new Debt at evenlowerInterest Rates.

That ended in 2022. The interest paid on new Debt accelerated, the total amount of interest paidon the Debt each year will double from 2019 to 2024. For example,the yields on 10-year Treasuryssurged throughout 2022 and most of 2023, nearly reaching 5% in October 2023. On the other hand, from 2012 to 2022, the yield on the 10-year was between 2% and 3% percent. The 10-year yield has fallen since October, dropping below 4 percent. That’s still more than double of what has come to be regarded as "normal" amplifying the true cost of the National Debt. The total National Debt has increased by 25 percent. Interest paid on the Debt has increased by 75 percent, nearly $573 Billion in 2019, it'll top $1 Trillion in 2024.

This rate of increase surpassed every category except "income security"which including the Covid-related panic Spending. Social Security increased 40 percent, and Medicare increased 30 percent.

If the current trend in interest and Debt continues, Congress will make very unpopular Spending decisions. Interest payments are now more than Military Spending and Medicare. If Debt continues to mount at the current rate, the requirements of Debt service will swamp the Budget requiring cuts to ensure Bondholders get paid.

It's easy to imagine a full one-fifth of the Budget going to paying for Bonds in the future. For every 100 Dollars in Taxes the US Government steals from the Taxpayer— via Income and Payroll Taxes—20 percent of it'll go to Interest payments, which are just payments on old Debts for lost Warfare, failed Schools, retired Government Employees, and countless Bernie Madoff style Pyramid Schemes.

We're already in a mounting Debt spiralas the Central Bank prints Dollars in an attempt to pay Debts while avoiding the Fiscal Austerity disaster.

The only possible Silver lining is it becomes obvious that interest payments are fleecing today's Wage Earners, it'll make Political sense to repudiate the Debt. Murray Rothbard wiselynoted, the idea that the Government has some sort of moral obligation to pay its Debts has always been nonsense. Interest payments paid for by Tax Dollars are nothing more than a forced Wealth transfer from Taxpayers to Bondholders. Yet, Bondholders voluntarily took the risk of US Debt. If the US defaults, well that's tough luck and a risk investors adopted willingly. Taxpayers, are anINVOLUNTARY PARTY to the Agreement. The Moral thing to do is freeing US Taxpayers from these obligations to begin with.

Its rightly been said, It's easier to fool someone than to convince them they got played for a Fool, after all, the US Government made them these Promises they never could deliver in the first place. At some point, You cannot rob Peter to pay Paul, you cannot rob Tom to pay Peter and Paul, and you cannot ask Jane to subsidize all this either. If you make a deal with the Devil, he's eventually coming to collect his due one way or another.