Content adapted from this Zerohedge.com article : Source
The passage of the tax cuts by Congress and sign by Donald Trump comes with a huge pricetag. How much? $10T.
Moody's is now considering downgrading U.S. debt.
Moody's will have even greater motivation to downgrade the US as according to the forecast, total US debt is projected to rise from $20.5 trillion today to an unprecedented $29.9 trillion in 2028.
At least Congress will shoot down the proposal to opt for one that is likely more expensive.
he good news, as noted earlier, is that Trump’s proposal, which calls for higher spending on military and immigration enforcement and abandons the GOP goal of balancing the budget over decade, is expected to be ignored by Congress. What is unknown is what alternative Congress will come up with, and how much higher the 2028 debt total will end up being.
Non-adapted content of this Zerohedge.com article:
https://www.zerohedge.com/news/2018-02-12/trump-budget-sees-us-debt-hitting-30-trillion-2028
I think that there is $1.5 trillion earmarked for infrastructure improvements that is significantly beneficial. Otherwise, I would really prefer to see more spending geared toward basic necessities for our citizens like food and healthcare.
I cheered and celebrated after the passage of the tax cuts by Congress and Donald Trump later signing. I felt this was a historical moment for the average middle income american who saw their wages go up because of the slash on the rate paid by the corporations.
But looking deeper into it after reading this post, I see America is heading for a looming disaster of deficits and debt. The bill signed by Trump is only boosting the US economy in the short term as it is boosting the growth of the total size of the US GDP by 0.8%.
But in the long run, we see huge spending which is causing deficits as I see it, with deficits reaching $1trillion in the current or next fiscal year double what the congressional budget office had projected less than a year ago for 2018. The US debt being projected to rise from $20.5 trillion today to an unprecedented $29.9 trillion in 2028.. over 100% of projected GDP well into the danger zone. This debt is going to kill the american economy. These debts have been historically low for years but are now going up and may continue to rise for some time.
There was no criticism when Barry blew out another 9 trillion dollars onto the stack of I.O.U.'s during his terms. So even though we've been screwed since about 1983, it's too late to fix it now, so why bother to scream and shout? Congress doesn't give a damn. Not even Alexander Hamilton could straighten out the banking and Wall St. mess from this point.
What's another few trillion in this crazy budget! Money for everyone! I've been waiting for this to fall apart for years if not decades now. It is stunning to see how big of a hole is being dug.
And almost NONE of the future obligations are in these numbers. There are all kinds of off-the-books liabilities upcoming. Such a nightmare for everyone and no one seems for care - especially not those in power.
Screw that man and his government. Seriously, what they're planning to try and do to the SNAP program, what's happening to funding for public education, like, the list is endless. I thought the R were supposed to be for small govt spending? Increasing the deficit...guess we shouldn't be surprised by the people who are in office taking it for all they can. I can hear the cash register ringing for them every.damn.day.
Govt debt continues to rise? What else is new?
I think America is heading for a looming disaster of deficits and debt. The bill signed by Trump is only boosting the US economy in the short term as it is boosting the growth of the total size of the US GDP by 0.8%.
Welcome to the bitcoin revolution!
century ago when the banksters staged their coup and gave themselves the power to print America’s money & charge interest on it. It was inevitable that those banksters would use their privilege to eventually buy up & control the media, education, politicians, bureaucrats, the courts, etc.
To keep the Ponzi scam going the ‘debt’ is constantly rolled over and grown larger. The ‘credit’ money in the overall system is always less than that credit + interest due on the ‘loans’. In reality, it was all made up outta thin air Nothing. (Quite a clever & successful con !)
Ron Paul was the only presidential candidate that even brought up this root problem of America. And even Paul would only go so far. - I had hoped that with his media and t.v. experience, Trump would give a series of talks direct to the American people explaining the truth of our situation. On that score he has been no different than every president from Woodrow Wilson on.
thanks for share @zer0hedge
They're going after social security to pay for it.
The government counts close to $1 trillion of it's budget for social security pay out, it's because social security holds $3 trillion of the national debt and the government must pay dividends on that money.
Cutting social security pay out lowers the deficit. A 25% reduction in pay out means around $250 billion lower deficit.
One would think the redundant agency form of government could use some house cleaning, but not congress or the president. A federal government reform is way over due, the agencies perform the same function as state agencies. Maybe all the talk about the federal agencies being the Deep State is true, because these agencies should have been jerked out by the roots a long time ago.
That's almost 30 times Russia's GDP.
While Trump deserves flak for continuing to increase the debt, the issue of ever increasing US national debt is far from his fault alone.
It has increased every year outside of I believe 2 years in which Bill Clinton’s admin gets to lay claim to running an annual surplus. That was thanks to the advent of the internet though and a technological/commercial innovation like that isn’t something that can be relied on to reverse course on the debt or even happen again at all.
i love they you guys are detailed , with your articles nevertheless i believe that we will not get to that point before we get a market crush.
when will they admit that they have a spending problem at 100 trillion? they are trying to collapse this economy
We are 20 trillion in debt, with over 112 trillion in unfunded liabilities (legislation which Congress has passed, yet cannot afford to fund). There is only something like 35 trillion in circulation, and around 90 trillion available in the entire world.
It gets complicated beyond that when you factor in bitcoin, gold, derivatives, you are around a quadrillion or so.
we are well past the point of things being unsustainable, and it would appear we are due for a currency reset, possibly to usher in a new global digital currency we will all be forced to spend the rest of our lives as debt slaves in pursuit of
@zer0hedge Very nice and congratulations👌
@steemcleaners
good news i will go to that ceremony.