As soon as interest rates seriously rise, it may just blow up in our face.

Maybe then America will start taking fiscal responsibility seriously again.

But that’ll be too little, too late.https://t.co/BEdpSMvzLE

— Brad Polumbo (@brad_polumbo) February 5, 2022

BASEDPolitics’ Brad Polumbo writes, “The national debt is back in the news after the federal government crossed a depressing threshold this week: $30 trillion in debt. This figure does rely on some weird logic, but the true debt is at least $23.4 trillion. So, it’s worth pointing out that if one small change happens, the growing national debt bomb could blow up in our face.

The debt always crowds out private sector investment and drags down economic growth. But right now, we aren’t feeling the pain of our mounting debt burden too much, because interest rates are at historic lows…

Some people think that today’s low interest rates mean it’s a great time for the federal government to borrow and spend massive amounts of money. But this is woefully misguided. The rates on the debt actually recalculate over time, so when interests rates go up in the future, all our past debt will soon become much more expensive and costly to manage.

American taxpayers are already spending $900 million every day just covering the interest payments on our existing debt.”

Read the entire column.

The post Why the $30 trillion national debt could soon blow up in our face appeared first on Liberty Tree.

The national debt is now 30 trillion dollars. That is almost $90,000 per citizen. If you wanted to count to 30 trillion, you would have had to have started almost a million years ago.

— Mike Lee (@SenMikeLee) February 1, 2022

The post How long would it take to count our $30 trillion national debt? appeared first on Liberty Tree.

Right now, Congress is trying to push a $3.5 trillion spending bill. It doesn’t occur to most in Washington that with a nearly $30 trillion national debt, we can’t afford this. They would spend more if they could and no doubt plan to.

This has to end. The disaster it will create is something no one in this country of any party or ideology will want to see.

Politicians have to learn: Money has to come from somewhere. Either we borrow it, we tax people for it, or we simply print the money. Borrowing it obviously puts us further in debt. It puts us further in China’s debt. With taxing, Americans endure enough government theft already.

Printing money out of thin air has consequences. When the Federal Reserve prints the money, we increase the money supply which makes the current dollar worth less and less. Our money loses its purchasing power.

Right now we’re facing five percent inflation. People are feeling it. They see prices going up on so many things. At the gas station. At the grocery store. It’s happening everywhere.

That’s why inflation is a regressive tax. When the working class and those with lower incomes have to pay more for goods and services, that cost falls on them. The prices are also increasing in large part because of the massive borrowing both parties instituted in the last year using the pandemic as their excuse. Politicians thought the best policy would be massive nationwide shutdowns that wrecked the economy and to also give away free money we can’t afford.

We all know how that worked out.

In 2020, our national debt stood at nearly 130 percent of our Gross Domestic Product. In 2019, it was 108 percent. This is how rapid federal spending is right now. In 2021, we are getting even closer to owing about a time-and-a-half of what the entire United States produces in a year.

This is about where Greece was financially when that country declared bankruptcy and was unable to pay its bills. It is foolish to believe there will be no consequences. We are already seeing the consequence of inflation. How many more do we have to see before we reverse course?

Because it could become much worse if spending continues at current levels. Right now, the federal government is accumulating $2 million in new debt per minute. That is absolute insanity. If you took Medicare, Medicaid, Social Security, food stamps, other welfare, military and other annual spending combined, we were already $1 trillion short every year to cover those costs. That was before we added another $2 trillion last year. Now everyone wants to add a few trillion more.

This country has never borrowed that much.

It is true that because the American dollar is a global currency, the U.S. has probably been shielded from some of the drastic or immediate consequences that befell Greece. But there are also immutable rules of economics that will eventually catch up to us. We inch closer to that line, every day.

No one can predict what or when something terrible might happen. The consequences of our spending addiction could happen gradually. It could also be sudden and drastic. If you look at the history of the U.S. market, we have had black swan events where over a week’s time most of the losses happen calamitously.

I don’t want calamity for our country. I want to change what we’re doing before we get that far.

But make no mistake: we are currently spending America into oblivion. We should stop.

The post We are spending America into oblivion appeared first on Liberty Tree.

FEE’s Brad Polumbo writes, “Most of the politicians in Washington, DC are focused on a push to spend trillions of more taxpayer dollars on President Biden’s agenda. But Senator Rand Paul is raising the alarm about all the money the federal government has already spent—that it doesn’t have.

Money doesn’t grow on trees… money’s got to come from somewhere. https://t.co/Z0G7fsVLor

— Senator Rand Paul (@RandPaul) October 9, 2021

‘We’re rapidly approaching a milestone in our country, and it’s not a good one: $30 trillion in debt,’ Paul noted in a fiery Senate speech on Thursday. He said that the federal government is accumulating ‘$2 million per minute’ in new debt.”

Read the entire column.

The post Rand Paul slams national debt, inflation and socialism on Senate floor appeared first on Liberty Tree.

I joined Chris on @newsmax just moments ago to discuss the #BernieBudgetBust up for a vote tomorrow in the House.

Spending and spending and spending while inflation is through the roof, the border crisis surges, and we have Americans in need of evacuation in Afghanistan. pic.twitter.com/KokjJfhj00

— Congresswoman Kat Cammack (@RepKatCammack) August 23, 2021

The Associated Press reported in July, “The Congressional Budget Office says that the federal budget deficit will again hit $3 trillion this year, $745 billion more than its estimate five months ago, as it takes into account the cost of President Joe Biden’s $1.9 trillion coronavirus rescue plan.”

“In an updated forecast Thursday, the CBO said the deficit for the current 2021 budget year, which ends Sept. 30, will be the second-largest in history, coming in shy of last year’s record shortfall of $3.13 trillion,” AP reported.

The AP also noted, “Federal debt, meanwhile, will rise to 102.7% of the total economy this year from 100.1% last year, according to the CBO forecast. This year’s number would eclipse last year’s as the highest debt level since the end of World War II.”

The post Spending and spending and spending… appeared first on Liberty Tree.

How much has the national debt increased since 2020? You don’t want to know

YIKES!

The national debt has increased $5.2 trillion since the start of 2020 (or $40,000 per household).

Source: Heritage Foundation. pic.twitter.com/xe1gLlP3HG

— Thomas Massie (@RepThomasMassie) August 9, 2021

And now Democrats want another $1.2 million for “infrastructure.”

“Infrastructure”:

?‍ Senate’s $1+ trillion infrastructure bill ensures that “incarcerated individuals” (aka prisoners) are able to have high-speed internet access.

Source: Heritage

— Thomas Massie (@RepThomasMassie) August 9, 2021

The post How much has the national debt increased since 2020? You don’t want to know appeared first on Liberty Tree.