Posted on 09/20/2023 9:17:56 AM PDT by tired&retired
Total US Revenue
October 2022 through August 2023. (11 months) $3.97 trillion
$ 3.97 ÷11 = $.3609 trillion per month × 12 months = $4.33 trillion Total Revenue for the current fiscal year.
Social Security & Medicare Taxes are 37% of the Total Revenue or $1.60 trillion
Thus all Revenue from All Sources except Social Security and Medicare is $2.727 trillion
Total debt is now $33 trillion
Total Revenue ÷ Total Debt = 8.26 %
Note Social Security and Medicare are currently running a deficit, meaning they do not create a surplus to help the General Fund.
If inflation causes our interest on our National Debt to reach 8.26% it takes 100% of our Revenue to pay interest. Nothing left for any other Goverment Spending.
Current T-Bill rates are approximately 5.5%
Source:
https://fiscaldata.treasury.gov/americas-finance-guide/government-revenue/
As you can see, this house of cards is about to collapse. It's even far worse than these figures show as goverment pensions, such as military pensions are 100% unfunded. This does not include off budget debt.
The USA is far beyond bankrupt.
US Inflation Rate is at 3.67%, compared to 3.18% last month and 8.26% last year.
This is higher than the long term average of 3.28%.
Can the Fed pull a shell game and purchase more debt?
Will they just print more money and increase inflation? Thus increasing the interest on the debt.
The wealthy and connected seem to be having a great big party—they found the still in the back woods....
;-)
The wealthy and connected seem to be having a great big party—they found the still in the back woods....
;-)
When you owe a thousand dollars you have a problem.
When you owe a trillion dollars the bank has the problem.
;-)
In my old neighborhood there was a saying:
“I’d rather owe it to you than cheat you out of it.”
Oh well … Pain is a good teacher, they say.
If my household had an income of 433k and debt of 3.3 million (same proportions as the nation), and a 5% interest rate, we would have an interest burden of 150k per year. That would leave us 283k per year to live on. We could put money toward the principle and be solvent... so long as we stopped all borrowing. We could even pay our 160k retirement & health insurance bill, leaving us 123k a year for other expenses.
But we’d have to freeze our expenses and stop borrowing, and cut our expenses in many areas.
Almost all politicians are only concerned about getting re-elected. This is why the can keeps getting kicked further down the street.
Wealth = stored production, and production is merely transformed energy. Money is a mere representation of that. Therefore, money is a claim on present energy, and debt is a claim on future energy.
A corollary is that the USA can only pay down its debt, without massive debasement of our money, and goods-price inflation, by finding and deploying lots of cheap, new energy.
The Saudis and Russians (and Chinese) are trying to make sure 1) they have enough energy for their own futures, and 2) that the USA pays a lot more for its energy.
Idiot leftists and woke central planners in the USA are assisting them in our own destruction.
Our elected reps seem to get spinectomies on their way to washington dc.
But we could make it if a rational group of people were in charge.
We would need politicians who don’t care about reelection.
We would also need politicians who will stand up against the political pressures from the Democrats various liberals and the media.
Any proposed cutbacks in spending on any government program is portrayed as taking food out of the mouth of poor people,throwing granny off the cliff Etc.
We can’t even freeze government spending at current levels, because a freeze is going to be portrayed by the media as a cut, if we reduce the rate of increase of government spending.
So we really need politicians who will not give a blank about what the Democrats and assorted liberal type say, and who will not give a blank about what the media says about them.
Interesting perspective.
Now increase your debt to $4 million, reduce your income about 10% to $390K (due to recession) and increase interest rate to 7%. You suddenly are living on much less. Your neighbor may get surly and steal your unhappy wife, your kids will riot and burn down the garage, and debt-collectors are going to get a lot more aggressive.
“Your ATM is safe. Your banks are safe. There’s enough cash in the financial system and there’s an infinite amount of cash at the Federal Reserve.”
Minneapolis Fed President Neel Kashkari
It’s very clear that those who control the debt are determined to run it all into the ground and move onto the next target. They have no intention of having the debt paid off, certainly not by them.
“there’s an infinite amount of cash at the Federal Reserve.”
Is that good news or bad news?
Lol.
I agree with you. It would be a mess.
But what if a new CEO at the head of your business grew your business from 2,600,000 to 3,300,00.
Your income would also grow, and if you’d frozen your expenses and borrowing, you’d be able to pay on your debt and lessen the interest and have even more flexibility. Imagine getting altogether out of debt and never going there again because you’ve learned your lesson.
You are totally missinf the point.
If your 433K included 37% payroll taxes that you don’t get, then you are left with $272K to spend.
Using your $3.3 million at 5% is $165K in interest. Not current rates are already over that and escalating.
Using your figures, $272 - $165K leaves $107K for all other payments.
Using the current Federal Budget Spending net of SS & Medicare and Interest in the same ratio, you are spending $414K per year.
So, using your example, you have $107K to pay $414K in bills.
Hate to have you figure our budget!
Note: The total spending was $6.27 trillion and 66% were non SS & Medicare and Interest payments. That’s how I arrived at the ratio to get the $414K you are spending.
Please redo your math without the emotion. This isn’t New Math.
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