President Biden and the Democrats, along with their RINO accomplices, have done all they can to bankrupt the United States. They are not stopping, and things are not looking good with the economy, As Biden continues to throw billions of American taxpayer dollars to Ukraine and Iran, and the Palestinians and Hamas terrorists. Anything to hurt this country’s financial condition and destroy the dollar.
The U.S. national debt has seen a significant rise, escalating from $34.53 trillion to $34.75 trillion within a month, according to the latest U.S. Treasury data. This increase has resulted in interest payments on the debt exceeding the total annual expenditure on major national priorities like defense, Medicare, and Medicaid, with the annual cost of interest payments now surpassing $1 trillion. These developments highlight the critical fiscal challenges facing the country, as emphasized in a recent op-ed by Vance Ginn, a former economic policy associate director at the White House’s Office of Management and Budget.
The national debt soared to record highs with the US facing trillion dollar deficits and record debt. Why should top earners and corporations pay even less in taxes than they do now?
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— Robert F. Kennedy Jr (@RobertKennedyJr) June 30, 2024
Ginn describes the U.S. as teetering on the brink of a fiscal abyss, with the burgeoning debt not merely representing a number but a profound ethical and economic burden for future generations. He critiques the government’s current practice of managing debt through further borrowing, which he deems unsustainable. This cycle is anticipated to lead to higher interest rates, inflation, and could potentially stifle productive economic activity in the private sector.
Moreover, Ginn cautions that the ongoing fiscal trajectory might necessitate tax increases on the middle class and could result in millions of Americans being cut off from benefits as entitlement programs like Social Security and Medicare approach insolvency. These programs, essential to many, are predicted to be bankrupt within the next decade, further complicating the fiscal landscape.
Is the US economy falling into a recession?
1) GDP GROWTH SLOWED TO 1.4% IN Q1
2) 38 MONTHS OF INFLATION ABOVE 3%
3) $2 trillion deficits
4) $34.6 trillion NATIONAL DEBT – record5) Monthly non-farm payrolls likely OVERSTATED in 2023 by 730,000 jobs 👇https://t.co/S5utRJW1rf
— Global Markets Investor (@GlobalMktObserv) June 30, 2024
As the U.S. approaches critical junctures like the expiration of discretionary spending caps and the debt ceiling in 2025, Ginn urges policymakers to not let the crisis go to waste—a sentiment echoed from Rahm Emanuel, former chief of staff to President Barack Obama. Meaningful reforms, particularly in entitlement programs which consume a large portion of the federal budget, are deemed essential to averting a severe budgetary crisis and ensuring fiscal stability.
Key Points:
i. U.S. national debt increased by over $215 billion in a month, with interest payments now exceeding major national expenditures.
ii. Annual interest payments have reached over $1 trillion, surpassing spending on defense and major social programs.
iii. Vance Ginn highlights the unsustainable cycle of managing debt through more borrowing, leading to potential economic repercussions such as higher interest rates and inflation.
iv.. The looming insolvency of entitlement programs like Social Security and Medicare poses significant risks, potentially forcing millions off benefits.
v. Urgent fiscal reforms are advocated to address the challenges posed by the expiration of spending caps and the debt ceiling in 2025, to prevent a major budgetary crisis.
RM Tomi – Reprinted with permission of Whatfinger News
