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The US national debt increased by a staggering $814 billion between Aug. 1 and Oct. 6, according to Treasury Department data.
The Treasury Department is on a borrowing spree making up for lost time. The national debt pushed through the $22 trillion mark in February but then held relatively steady for several months. This was not the result of sudden government frugality. It was due to Uncle Sam running up against the debt ceiling. That put the temporary nix on borrowing. But the bipartisan budget deal agreed to in July suspended the debt ceiling for two years and allowed the borrowing train to get back on the tracks. The national debt surged $291 billion in just one day (Aug. 2).
This was the same deal that will increase discretionary spending from $1.32 trillion in the current fiscal year to $1.37 trillion in fiscal 2020 and then raises it again to $1.375 trillion the year after that. The deal will allow for an increase in both domestic and military spending. Apparently, the debt crossing the $22 trillion threshold didn’t set off any warning bells in Washington D.C. because there was virtually no attempt to rein in the spending.
According to the Congressional Budget Office estimate, the FY2019 budget deficit came in just a hair under $1 trillion at $984 billion. That amounts to 4.7% of GDP, the highest percentage since 2012. It would be the fourth consecutive year in which the deficit increased as a percentage of GDP. The debt-to-GDP ratio is estimated to have increased a hefty 26% over last year.
All of Washington — both parties, Congress & White House — pretend that the national debt has no consequences. They talk about reparations for slavery because they don’t want you to see we are all becoming indentured slaves.
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