The August numbers are out. U.S. government debt in the month of August grew $210 Billion. It’s so easy to make government promises to constituents for re-election, no?
https://www.fms.treas.gov/fmsweb/viewDTSFiles?dir=w&fname=10083100.pdf
Here’s the big picture, folks. Since the housing and banking crisis began in late 2008, the U.S Treasury, our government, has spent $3.9 trillion it didn’t have to prop up the economy. Since late 2008 Gross Domestic Product, also known as the size our economy, has “grown” a mere $300 billion, from $14.3 trillion to $14.6 trillion. Read those last two sentences again to make sure the message is brought home.
And they call this a recovery, right? It’s the great cover up.
Letting my computer calculate some basic math for me—since the Great Crisis began, thanks to our American Gamblers Club of Big Banks and loose Monetary Policy—our U.S. Treasury has borrowed $3.9 trillion in future claims from taxpayers to produce $280 billion in GDP. And spending looks like it will go on as far as the eye can see…
In fact, the U.S. has increased many of its already structural issues. For e.g., we know we have a net present value deficit on Social Security, Medicare, and Medicaid of $80 trillion dollars—that is with a T. However, since the Great Crisis began, Medicaid costs alone have soared $273 billion over the last two years and more than 50 million people are now covered under Medicaid, with 16 million more people entering the Medicaid system in 2014.
Folks on food stamps has grown 21% from June ’09 to June ’10—33 million to 40 million people, respectively. Meanwhile, the cost of this increase is up 80%, to $70 billion annually. This means that over 10% of the GDP “growth” has been supported by more and more families going on food stamps—another claim on taxpayer’s in the years to come.
Money flooding the system with massive amounts of government credit card spending, or worse—monetizing our debt through the means of printing money out of thin air, will make it harder for Americans, especially those left in the middle class—to make ends meet as purchasing power quickly erodes. Protecting your loved ones of this Elephant in the room—unsustainable debt levels—should become an all-important theme in your personal life as well as your investment choices.
Please continue to tell your friends and family about Green Partners, LLC.
