The United States government has borrowed $747 billion for this fiscal year according to the latest monthly statement by the Treasury.
June brought in $334 billion with $342 billion spent. Giving the month a very tiny deficit of just $8 billion, but for the year the picture is very different.
As we can see above, $1.3 trillion was paid to the government in income taxes this fiscal year so far which runs from October.
Another close to $1 trillion was paid in social security taxes, with corporate taxes brining in $164 billion.
Sin excise taxes on tobacco and the like brought in $71 billion. While miscellaneous, that presumably being fines for say speed driving and licenses, brought in $59 billion.
Custom duties, or tariffs, have brought in about 2% of the total at $50 billion, while Estate & Gift taxes have brought in pretty much nothing as the aristocracy keeps passing on its wealth in inheritance without paying a penny and as the billionaire landowners pay almost nothing.
Meaning it is primarily, if not almost exclusively, the 9-5 workers and the self-employed who are paying for $780 billion in pensions and an astonishing $512 billion on the army for the year so far.
That’s more than health, with interest payments standing at $308 billion. That’s the sum US residents are giving to bankers and China as well as others for pretty much free.
Education is about 3.5% of total spending, while transportation is pretty much on life support.
The other $104 billion contains research and development, agriculture, business, NASA, the civil service, Trump’s salary, Air Force One, and pretty much everything else like museums, libraries, art galleries, parks.
Meaning America is spending its money on the young going to war and the old voting for it.
Obviously since their spending choices are so fine, they can’t quite afford this monstrous pact, with America already borrowing close to one trillion in the past nine months.
Debt levels are now not only growing, but they’re accelerating in the speed of growth because of interest payments which of course get higher the more debt you accrue with it set to near half a trillion in interest payments this year, almost as much wasted spending as that wasted on the army.
Trump’s solution is print baby print. His thinking is probably that as a global reserve currency, USA can export its inflation to other countries.
The problem is other countries are kind of ditching the dollar and going off to the euro. Not in an abrupt shift, the dollar still dominates, but the trend is very clear with its share of global reserves falling while, according to Reuters:
“The euro’s share of global allocated currency reserves rose to 20.69 percent in the fourth quarter of 2018 to the largest since the fourth quarter of 2014.
The share of allocated currency reserves held in yuan, also known as renminbi, rose to 1.89 percent, the highest since the IMF began reporting its share of central bank holdings in the fourth quarter of 2016.”
This trend may accelerate as the US government is starting to look a bit bankrupt with no foreseeable plans to do anything about this astonishing tax-payed sum in interest to primarily bankers.
Trump intends to increase spending on the military, and any tariffs appear to have come at a considerable political cost while gaining no income whatever.
With Republicans not trying to reduce this theft from future generations, Democrats may well have a persuasive argument that amounts to: we’ll give it to you, while they give it to the rich.
Meaning there’s a bizarre spend baby spend consensus, which could have been fine had it shown any result due to it being used as an investment. As it stands, US is borrowing 4% of the GDP a year for a 3% yearly growth rate without accounting inflation.
In the circumstances it is quite obvious why Trump says he’s not a fan of bitcoin. The people’s money is the only thing that can give the young, who are being sunken in mountains of debt, a peaceful exit method that can withstand even seizing executive orders because you can always just memorize the seed phrase.
Bitcoin is the only thing that can stand up to this gluttony on the young’s wealth, to this continued mismanagement and misappropriation of our money which go to giving one more day to the old rich baby boomers who seem happy to yeeha into more and more war the ones that pay for them.
Our grandmas and pa’s, as much as we love them, keep arguing students are the ones benefiting from university so they should pay for it. Yet they do not argue they are the ones benefiting from pensions, so they should have a land tax to pay for it, as well as an inheritance tax, scaled according to means.
Because this debt is not a fictitious thing. It’s a tax which won’t be paid by the very old last century Trump, but by the generation that keeps watching this pantomime show with utter disgust.
They think we want entertainers, or stories, or pretty faces, when we see deception, and theft, and sophisticated corruption, and real problems which have in some cases easy solutions but what do the 70 or 80 years old care. They only have the past. For them, the future is the grave.
For us, the future is hopefully 70 years more. There’s tons we can do with this one trillion wasted on the army and interest payments in just nine months. Yet, we won’t be doing anything with it, but throwing it down the drain.