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We Have 3 Years Before The National Debt "Death Spiral" According to the U.S. Treasury Department’s Office of Debt Management, the U.S. government is just five years away from the point of no return. With the national debt spiraling quickly out of control, there are only a few years left before every single dollar the government borrows will go toward funding interest payments on the national debt. The Independent Blog said that the main takeaway from the Debt Management Office’s Fiscal Year 2019 Q1 Report, which featured the Office of Management and Budget’s latest projection of the U.S. government’s borrowing from the public, is shown in the chart below: ZeroHedge explains the significance of what the chart shows as the Primary Deficit, indicated as the blue portion of the bars in the chart, swings from positive to negative beginning in 2024:
Once we reach that point, the government will have reached the “death spiral,” a point at which the complete collapse of the government and financial system is imminent. Cities and territories in the United States that have crossed that “event horizon” to the crisis point. They have all either gone through bankruptcy proceedings or their equivalent, or they have implemented major fiscal reforms that reversed their fiscal deterioration, wherein the best-case scenarios, they acted to restrain the growth of their previously out-of-control spending to restore their fiscal health. Don’t hold your breath that the U.S. government will quell it’s spending habits. H/T [The Independent Blog]
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