Wednesday, October 3, 2018

$38000 per second: U.S. borrows more money every two seconds than the total annual income of most Americans

With the Treasury Department announcing that the U.S. borrowed over $1.2 trillion for fiscal 2018, and interesting extrapolation can be made in just how large that number is.  Because if you break down Washington's insatiable need for debt into increments of minutes and seconds, the U.S. government is now borrowing at a rate of $38,000 per second, or more than the total income for average Americans every two ticks.

The latest data from the US Treasury Department shows America’s gross national debt ballooned by $1.2 trillion to a breathtaking $21.52 trillion on September 28, the last day of fiscal year 2018. 
During that period, the US national debt increased by 6.3 percent and now amounts to 105.4 percent of the country’s current-dollar Gross Domestic Product (GDP). 
According to the Treasury Department’s Bureau of the Fiscal Service, the national debt at the end of fiscal year 2017 was an estimated $20.25 trillion. The large deficit is a result of federal benefit payments pushed into August instead of September, the service said. – Russia Today
In comparison to the amount of debt the government borrows each second, the average annual income for American households is between $57,000 - $59,000 per year, or less than two seconds worth of borrowed debt.

As you can see from the chart above, our national debt is increasing at a rate where it has already reached a critical juncture from moving out of arithmetic growth, and into that of exponential growth.  And when you couple in the fact that the Federal Reserve is raising the cost of borrowing at the rate of about 1% per annum, it will not be long before interest on the debt is not only greater than what the U.S. spends on defense, but where the Treasury will also need to borrow that amount on top of its current borrowing levels just to be able to pay the interest on that debt.

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