Federal Debt
Analysis
Return to
2024
Election
Please Share with a swing voter.
10/16/24
2nd Time this Century US Managed its Way into Debt Problems
Historically, No-one Pays the Federal Debt, We Just Roll it Forward
Mom and Dad died in their late
80's. They didn't pay a penny on US debt..
Their Four Children, now all in their 80's, didn't pay a penny.
If politicians let the Fed Res roll debt forward slowly,
my brothers 8 kids, now in their 50's, will not pay a penny.
|
End of Fiscal Year |
US Gross Debt as % of GDP | Question Answer |
|---|---|---|
| 1940 | 52.4 | No One |
| 1950 | 94.1 | |
| 1960 | 56.1 | |
| 1970 | 37.6 | |
| 1980 | 33.3 | No One |
| 1990 | 55.9 | |
| 2000 | 58 | TBD |
| 2010 | 86.5 | |
| 2020 | 120 |
Big Trouble Means Bid Debt
Once US Economy Shut Down for Covid, Economy was in Big Trouble
Federal Debt Analysis-21st Century
Obama continued the Bush policy
of fighting the Great Recession with
one trillion dollars in debt
and by 2016 it was apparent that this policy
had worked better than Europe's
austerity policies.
Biden
followed Trumps lead and they borrowed five
trillion dollars
and by 1224 it was apparent that this policy
had worked better than Bush/Obama policies.
Two Kinds
of Federal Debt
1. Bonds/Notes pay interest to owners.
2. Dollars pay no interest.
Transactions only occur in dollars, which the FED prints as needed.
Fed can print dollars, give to treasury to spend, all with no
interest.
The hitch: If we
spend lots in 2025-6,
the Fed Res may not be able to roll debt forward easily
as
interest rates paid will go up lots,
keeping $ out of economy will be difficult,
and we could be in deep-doo-doo inflation.
See 2024 Deficit Analysis or Candidate Tax Positions
US Federal Debt Began With War
FDR Used Debt to Feed People
Republicans Cut Taxes
Source The Long Story of U.S. Debt, From 1790 to 2011
Excess Money Printing Could
Cause
Inflation Leading to Higher Interest Rates/Cost
They did it again for Covid Shutdown
