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U.S. Debt Worries Fed Chairman Powell – Fears May Be Confirmed in March As we enter 2019, the U.S. national debt continues to grow, approaching $22 trillion with global Government debt sitting at $72 trillion. It seems like the 21st century is hitting the U.S. with a debt “haymaker,” according to CNBC (emphasis ours):
And even though the U.S. economy may be growing, the sustained annual deficit exceeds $1 trillion. This is concerning economists, including Chairman Powell:
If a recession hits (and signals are potentially pointing towardsone), then having that amount of sustained deficit could be devastating. And since the Fed is partially responsible for creating this debt problem, it seems odd for Powell to call it a “long-run” issue when it’s more of a “right-now” issue. According to a recent CNBC article, normally when the deficit is expanding, the “Fed would be lowering rates”. But they aren’t. In fact, rates have been on a steady rise for the last few years. At the global level, the picture isn’t much better. Debt has reached record levels, double what it was in 2007. This is “leaving many countries poorly positioned for financial tightening as global interest rates begin to move higher,” says James McCormack, Fitch’s global head of sovereign ratings, in a statement. Powell and other economists have every right to be concerned, because both debt and deficit spending may be spiraling out of control. In March the U.S. Debt Crisis May Come Roaring Like a Lion David Stockman, contrarian economic commentator and former budget director for Reagan, pulled out all the stops in an MSNBC video interview:
The “freight train” he is referring to is the U.S. deficit. He also claims the spending plan being implemented by Congress since February 2018 will “smother the U.S. economy.” That same plan lifted the debt ceiling up till March of this year. Back in 2018, Stockman issued one of the sharpest warnings about U.S. deficit spending (emphasis ours):
So how far has the U.S. come since Stockman’s dire 2018 proclamation? As should be expected, not very far. In the first quarter of FY 2019, the U.S. deficit continues to climb and is already on pace to top $1 trillion this year. According to the New York Times, even with “payment shifts” that started in 2018, this years’ federal spending still outpaced revenue by 17%:
And just to balance FY 2019’s budget, massive spending cuts would be necessary, according to a report at American Spectator:
Of course, balancing this year’s budget doesn’t offset the seemingly insurmountable piles of debt from previous years. Not even close. So when March comes and the debt ceiling needs lifting once again, the “debt lion” may come in roaring louder than it ever has. If you thought 2018 was bumpy, hang on tight. Don’t Let U.S. Debt Get Your Retirement U.S. debt may have reached the point of no return. The federal government will still have to pay more interest on its debt too, meaning they’ll have to borrow more just to pay that interest back. This creates a downward spiral that puts incredible pressure on interest rates to keep rising. And even if Powell and the Fed don’t want to raise them, they might have to. This also means any unforeseen crisis would be catastrophic. The market is already at risk of losing billions more in value, and 2019 is off to a rocky start. The corrupt establishment will do anything to suppress sites like the Burning Platform from revealing the truth. The corporate media does this by demonetizing sites like mine by blackballing the site from advertising revenue. If you get value from this site, please keep it running with a donation.
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