US National Debt Tops $22 Trillion
For 8 years, we took every opportunity to point out that under Barack Obama’s administration, US debt was rising at a alarmingly rapid rate, having nearly doubled, surging by $9.3 trillion during his term.
And while the absolute pace is slower, the trajectory of US debt under the Trump administration looks set to be no different.
We note this because as of close of Monday, the US Treasury reported that total US debt has risen above $22 trillion for the first time; or $22,012,840,891,685.32 to be precise (11 months after topping $21 trillion).
“Reaching this unfortunate milestone so rapidly is the latest sign that our fiscal situation is not only unsustainable but accelerating,” said Michael A. Peterson, chief executive officer of the Peter G. Peterson Foundation, a nonpartisan organization working to address the country’s long-term fiscal challenges.
Putting this in context, total US debt has now risen by over $2 trillion since Trump took office… but notably slower than Obama’s pace of borrowing…
We doubt today’s milestone will be celebrated on Trump’s twitter account.
And while some can argue – especially adherents of the socialist Magic Money Tree, or MMT, theory – that there is no reason why the exponential debt increase can’t continue indefinitely… the CBO’s long-term forecast of debt issuance is, basically, apocalyptic as the following chart confirms…
But it gets worse, as Double Line’s Jeff Gundlach recently noted…
Currently $122 Trillion US unfunded liabilities per Debtclock. That’s 564% of Fiscal ‘18 GDP. To fund would require 10% of GDP for 56+ yrs.
And worse still – The Fed ain’t buying like it was during Obama’s reign…
…click on the above link to read the rest of the article…
