National debt has climbed an additional $1 trillion since debt ceiling was removed
While the American people continue to question the so called economic recovery, an overlooked aspect of the U.S. budget is no longer getting much press since Congress voted to remove the debt ceiling and allow the President to borrow money from the Fed as he sees fit. Â And while Obama supporters in the media continue to prop up stories of how the President has lowered the budget deficit, the fact remains that in the past year, the U.S. government has added over $1 trillion of new debt to the taxpayers balance sheet.
The idea that the Obama administration has the budget deficit under control is a complete and total lie.Â According to the U.S. Treasury, the federal government has officially run a deficit ofÂ 589 billion dollarsÂ for the first 11 months of fiscal year 2014.Â But this number is just for public consumption and it relies on accounting tricks which massively understate how much debt is actually being accumulated.Â If you want to know what the real budget deficit is, all you have to do is go to a U.S. Treasury website which calculates the U.S. national debt to the penny.Â On September 30th, 2013 the U.S. national debt was sitting at$16,738,183,526,697.32.Â As I write this, the U.S. national debt is sitting at$17,742,108,970,073.37.Â That means that the U.S. national debt has actually grownÂ by more than a trillion dollarsÂ in less than 12 months.Â We continue to wildly run up debt as if there is no tomorrow, and by doing so we are destroying the future of this nation. – Economic Collapse Blog
At the current rate of increase, the National Debt may cross over the $20 trillion threshold by the end of Obama’s second term in office. Â When Barack Obama took over the Presidency in 2009, the national debt was atÂ $10,626,877,048,913.08, meaning the President has borrowed approximately $1,293,678,531,120 per year over the last 5.5 years. Â Thus when you extrapolate that out to the end of 2016, the final tally, not counting additional borrowing should the U.S. be pulled into one or more new wars, would beÂ 20.976,305,297,873 or 108% of the projected GDP for 2016.
Analysts and economists know that it is impossible for this money to ever be paid back, and with foreigners holding around half of our debt the United States has more to fear from our creditors than from any outside military or terrorist enemy. Â And since the government has reached the point where they have no understanding of money and debt, the belief in Washington that they can continue down a path of borrowing to pay their bills will result in nothing more than a spectacular collapse of confidence, and a guaranteed end to the world recognizing the dollar as the singular and primary reserve currency for trade.
Kenneth Schortgen JrÂ isÂ a writer forÂ Secretsofthefed.com,Â Examiner.com, and hostsÂ the popularÂ web blog,Â The Daily Economist.Â Ken can alsoÂ be heard Friday evenings giving an weekly economic report on theÂ Angel Clark radio show.