What a spectacle the world has become…full of farce and morbid hilarity.
The US government just breached the $16 trillion debt threshold. The folks at Zero Hedge tell us it took the government just 286 days to add an additional $1 trillion to the US debt pile. That’s $3.5 billion a day. Extrapolating, they tell us US debt will hit:
- $17 trillion on June 10, 2013;
- $18 trillion on March 23, 2014;
- $19 trillion on January 3, 2015; and
- $20 trillion on October 16, 2015
But before total US debt can smash through $17 trillion, it must first bump up against Congress’ self-imposed ceiling of $16.394 trillion. On the current trajectory, that will occur sometime in December.
It is the nature of dysfunctional economies and financial systems to require more and more debt to sustain their structural flaws. There is no going back for the US government. It will spend into oblivion. Otherwise, its economy will collapse.
Because US government spending is the only thing keeping the economy afloat. Over the past year the Feds pumped more than $1 trillion into the economy. That is, they spent over $1 trillion more than they collected in taxes.
And what did they get for it? An economy crawling along at barely a 2% growth rate! That’s not enough growth to do anything about the US unemployment problem. Which means the Federal Reserve can continue to justify its existence, and more quantitative easing because, it has a mandate to ‘fight’ unemployment.
Just how printing money leads to better sustainable employment outcomes is a mystery to us, and we suspect it is to the Fed as well. But these imbeciles are so saturated with their own self-importance that they no doubt think printing money must, somehow, be beneficial.
for The Daily Reckoning Australia
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