Wednesday, May 1, 2019

Interest payments set to exceed budget deficit.

As we first pointed out one month ago, when looking at the US 'income statement', most concerning by far is that for the first four months of fiscal year 2019, interest payments on the U.S. national debt hit $221 billion, 9% more than in the same five-month period last year, with the rate of increase breathtaking (see chart below). As a reminder, according to the Treasury's conservative budget estimates, interest on the U.S. public debt is on track to reach a record $591 billion this fiscal year, more than the entire budget deficit in FY 2014 ($483 BN) or FY 2015 ($439 BN), and equates to almost 3% of estimated GDP, the highest percentage since 2011.

* * * *

It only gets worse from there.[1]

So God's gift to the world, the United States Government, is using its credit card to pay the interest on previous debt.

What's the old expression? Liars never figure and figures never lie. It appears that that is precisely where we are. And whether Attorney General Barr attempted to conceal the true message of the Mueller report is now the chief obsession of the Dems. An odd obsession given that an anvil is about to fall through the roof.

Mr. Trump is not any better. He thinks that the stock market reflects the health of the economy. If anything it is a reflection of our corrupt and stupid manipulations and evasions.

[1] "Endgame: Starting In 2024, All US Debt Issuance Will Be Used To Pay For Interest On Debt." By Tyler Durden, ZeroHedge, 5/1/19.

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