{"id":31835,"date":"2018-03-02T21:16:35","date_gmt":"2018-03-03T02:16:35","guid":{"rendered":"http:\/\/olduvai.ca\/?p=31835"},"modified":"2018-03-02T21:16:35","modified_gmt":"2018-03-03T02:16:35","slug":"the-faster-america-grows-the-faster-america-goes-bust","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=31835","title":{"rendered":"The Faster America “Grows”, The Faster America Goes Bust\u00a0"},"content":{"rendered":"

The Faster America “Grows”, The Faster America Goes Bust\u00a0<\/span><\/a><\/h3>\n
\n
As of October 1st of 2007 (the start of the 2008 Federal Government fiscal year), federal debt stood at $9 trillion and 70 billion.\u00a0 In the subsequent ten years and\u00a0five\u00a0months, the US federal debt has grown $11 trillion and 805 billion and now stands at $20 trillion and 875 billion (chart below).\u00a0 Over the same period, US GDP grew $5 trillion and 169 billion.\u00a0 Simply put, for every\u00a0$1 of new federal debt undertaken, the US achieved $0.44 cents of economic activity or “growth”.<\/p>\n

However, as the chart below shows, the huge increase in federal debt (red line)\u00a0was accompanied\u00a0by a\u00a0minimal increase in interest payable on all that debt (blue line).\u00a0 The boxes detail the total debt incurred during each period against the annual increase in interest payments on that additional debt.\u00a0 The Federal Reserve is primarily to thank for the cheapening of debt and encouragement to undertake\u00a0all that\u00a0debt, but many fear the same Fed is set to hike those interest payments with its ongoing rate hikes.
\nIn\u00a0five months of fiscal year 2018 (through Feb 28), the Treasury has already issued $630 billion in new debt.\u00a0 The\u00a0Treasury\u00a0is on pace to\u00a0issue\u00a0$1.2+ trillion\u00a0in new debt\u00a0(2017 was a mere $672 billion increase).\u00a0 But let’s be conservative and assume the Treasury reins it in and “only” issues another $370 billion over the next seven months…for a nice round $1 trillion in new debt.\u00a0 Big numbers are hard to comprehend, so I’ll show\u00a0just the added responsibility from the debt undertaken in 2018,\u00a0per\u00a0every\u00a0full time employee in the US (there are 127 million FT US employees):<\/p>\n

+$31\u00a0per work day
\n+$157 week
\n+$658 month
\n+$7.9 thousand annually
\n…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Faster America “Grows”, The Faster America Goes Bust\u00a0 As of October 1st of 2007 (the start of the 2008 Federal Government fiscal year), federal debt stood at $9 trillion and 70 billion.\u00a0 In the subsequent ten years and\u00a0five\u00a0months, the US federal debt has grown $11 trillion and 805 billion and now stands at $20 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[16387,195,18287,303,391,15497,3650,2212],"class_list":["post-31835","post","type-post","status-publish","format-standard","hentry","category-economics","tag-chris-hamilton","tag-debt","tag-economica-blog","tag-fed","tag-growth","tag-us-federal-debt","tag-us-federal-reserve","tag-us-gdp"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31835","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=31835"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31835\/revisions"}],"predecessor-version":[{"id":31836,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/31835\/revisions\/31836"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=31835"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=31835"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=31835"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}