by Michael Maharrey, Schiff Gold:
Twenty days.
That’s how long it took the Biden administration to add another half-trillion dollars to the national debt.
Bidenomics certainly requires a lot of borrowing and spending.
On September 15, the debt quietly blew passed $33 trillion. On October 5, it pushed above $33.5 trillion.
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By the way, it only took Biden and his willing accomplices in Congress three months to drive the national debt from $32 trillion to $33 trillion.
As of October 5, the debt stood at $33,513,382,512,663.51.
This is an unimaginable amount of money.
To put things into some perspective, the total output of the US economy as measured by GDP was only $25.46 trillion. That means the US economy would have to grow by 33.5% to cover the national debt.
At $33 trillion, the US national debt is more than the total economies of China, Japan, Germany, and the UK combined.
Looking at it another way, as of Oct. 10, every US citizen would have to write a $99,839 check in order to pay off the debt, and every American taxpayer is on the hook for $258,257.
Part of the reason the debt has increased so fast since June is because the Treasury is still rebuilding cash reserves that were depleted during the debt ceiling fight. But the fact remains – the federal government spends too much money.
It’s hard to overstate just how bad the US government’s fiscal situation has become. We have a trifecta of surging debt, massive deficits, and declining federal revenue. The chart below provides a visual perspective – and it doesn’t even account for the last few years.
This relentless increase in debt is happening when the economy is supposedly strong. Typically, a strong economy generates more tax revenue, and deficits shrink. But this isn’t really a strong economy. It is a house of cards built on debt. Fiscal stimulus is helping to prop it up.
That means there is no end in sight to this upward-spiraling national debt.
The biggest issue is the federal government spending addiction. In August alone, the Biden administration spent over $527 billion.
And of course, the federal government is always looking for new reasons to spend money. With war raging in the Middle East, there is already a proposal to send aid to Israel and possibly add more aid to Ukraine to that deal.
As Peter Schiff said in a recent podcast, the US can’t afford peace, much less war.
In fact, the US can’t even afford the interest on the debt.
