This Double Whammy Will Unleash Unprecedented Money Printing… or Break the U.S. Economy
Deficits, Deficits, and More Deficits, Unravelling Social Security, Money Printer Going Brrr
“A government big enough to give you everything you want is a government big enough to take from you everything you have.”
~ Gerald Ford
The Federal Reserve is gearing up to cut rates and fire up the money printer this year. And you can see why…
You have Joe Biden, who’s in dire need of a push to turn the tide in the upcoming election. Then you have U.S. banks sitting on a hefty $480 billion in unrealized losses on government securities. The Fed is poised to lend a helping hand to both.
But then there’s another reason that tells me that the Fed won’t likely stop soon once it starts up the proverbial money printer.
Let me elaborate.
Numbers Straight Out of a Horror Flick
Every six months, the Congressional Budget Office (CBO) releases a rolling 10-year “Budget and Economic Outlook.” Most people ignore reading material of this sort, but I’m always eager for it because it showcases just how utterly incompetent governments can be.
If you open the most recent report, and scroll to Page 10, you’ll find Table 1-1: CBO’s Baseline Budget Projections. Look for the line labeled “Total Deficit.” These are government deficits, and I’ve marked them in the next image.
The first thing that should catch your eye from the table above is that the deficits will consistently worsen, starting at $1.5 trillion in 2024 and reaching about $2.6 trillion by 2024. That’s an increase of 71% in just a decade.
Alarmingly, this also means that the total cumulative deficit between 2024 and 2034 would hit an astounding $21.6 trillion.
If this isn’t a damning indication that the U.S. is rapidly heading towards complete fiscal ruin, I don’t know what is. But it gets even worse.
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