When does the US Government Become OFFICIALLY Bankrupt ?

[St. Phatty]

The US moves closer to Official Bankruptcy.

Not because of a Zero Hedge article, Zero Hedge just brought the most recent set of numbers together.

"Not Sustainable": The US Budget Deficit Is Unexpectedly Soaring Again And Why It's About To Get Much Worse | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

FIRST HALF -
Fiscal 2023 Spending $3.149 Trillion
Fiscal 2023 Incoming (Tax Revenues) 2.048 Trillion

National Debt increases $1.101 Trillion - in 6 months.

National Debt is about $31.46 Trillion

national debt 2023 - Google Search

Interest costs - $640 Billion for 2023 (paying about 2% interest)

2022 GNP $26.2 Trillion

2022 GNP - Google Search

US borrows about $2 Trillion in 2023, pays $640 Billion to cover $31+ Trillion Debt.

= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =

Kind of hard to conceive.

Imagine a working person with assets, debts, income & interest 1/100 Million of National Numbers.
(related to population of about 332 Million)

us population - Google Search

Income of $20,480 for first 6 months of 2023, but expenditures of $31,490

Personal Debt increased $11,010 in 6 months 2023

Total Debt is $314,600

Would a bank loan you $11K for the second half of 2023 ?


For a normal person or business, if they're borrowing money to pay the interest on their debt -
They Are Bankrupt.

I presented a similar set of numbers to a bank manager a few years ago.

They said "is this a trick question ? This person is WAAAY Bankrupt."

I said, well yes, it was a trick question. That's the U S A, divided by 100 Million.

They said, "well the US government can print money".


How long will the US gov. be able to print money to make ends meet ?


Normally, "Banana Republic" status is conferred on a nation when their Debt exceeds their GNP.

For the US, Debt is about 119% of GNP.

 

[Creeperpark]

The US dollar will fall in value by the time the national debt is balanced. Already the cost of living is doubling every year with no end in sight. Its going to get a lot worse before it gets better. State and federal taxes are over the roof and jumped from 30% to 165% in the last few years.

What can one do?

Stop spending on wants and only stock up on necessities.
Learn how to live simply as possible and learn how to not have things.
You can't take it with you when you go anyway so learn how to let go.
I plugged all my money leaks a long time ago. I don't drink booze, or soda, or smoke cigarettes or sweets or have any wasteful practices. .
If you can buy gold and silver before it is too high, get some for a sound mind. WE can't trust the current situation because we are in uncharted territory that we've never been in before. Really NO BODY KNOWS whats going to happen.

 

[Three Berries]

I lived thought the Carter Years of inflation. Bought my first home at 11% interest with a 5 year balloon payment at the end.

 

[k-s-p]

Morally, many decades ago. Fiscally, idk.

 

[Three Berries]

Bankruptcy always starts slowly then all at once.

 

[Three Berries]

 

[Microbeman]

The US dollar will fall in value by the time the national debt is balanced. Already the cost of living is doubling every year with no end in sight. Its going to get a lot worse before it gets better. State and federal taxes are over the roof and jumped from 30% to 165% in the last few years.

What can one do?

Stop spending on wants and only stock up on necessities.
Learn how to live simply as possible and learn how to not have things.
You can't take it with you when you go anyway so learn how to let go.
I plugged all my money leaks a long time ago. I don't drink booze, or soda, or smoke cigarettes or sweets or have any wasteful practices. .
If you can buy gold and silver before it is too high, get some for a sound mind. WE can't trust the current situation because we are in uncharted territory that we've never been in before. Really NO BODY KNOWS whats going to happen.

Can't eat money; can't eat gold and silver; buy seeds and gunpowder.

 

[Creeperpark]

We are in a time that no one has been in before now. One should get ready for what could happen. Lots of problems, sanctions with China War, H bomb, Inflation, drought and floods, earthquakes, pandemics, rising oceans, old age, illness, and death. Pack plenty of jars of you know what.

 

[RobFromTX]

Can't eat money; can't eat gold and silver; buy seeds and gunpowder.

Smartest thing ive read on this site

 

[YahayaLuqman]

While I'm not an expert, I can share some thoughts on the matter. The US government's ability to print money does provide some flexibility, but it's critical to strike a balance between spending and revenue generation. However, I believe it's in everyone's best interest for the government to work towards sustainable fiscal policies.

 

[GOT_BUD?]

Beat me to it. But I'd have suggested the last 150ish years. Those Robber Barons were almost as corrupt as what we have now.

Morally, many decades ago. Fiscally, idk.

 

[GOT_BUD?]

While I'm not an expert, I can share some thoughts on the matter. The US government's ability to print money does provide some flexibility, but it's critical to strike a balance between spending and revenue generation. However, I believe it's in everyone's best interest for the government to work towards sustainable fiscal policies.

They could start by increasing the power and teeth of the IRS and start getting rich people and corporations to finally start kicking in instead of taking everything and leaving the scraps for the bottom 90% of America.

 

[h.h.]

Can't eat money; can't eat gold and silver; buy seeds and gunpowder.

Gunpowder will kill your plants.

 

[h.h.]

If you buy and sell gold, you’re giving your money away for the privilege.
Spend every penny you have. It’s worth more now then it will be later.
Don’t hoard.
Folks die with money in the bank and gold in their vaults.

 

[Microbeman]

Gunpowder will kill your plants.

and elk, sick dogs, horses and me

 

[h.h.]

and elk, sick dogs, horses and me

So I’ve heard…

 

[GOT_BUD?]

Holy shit! Who knew that would happen??

Washington's $849 Million Capital Gains Windfall Shows 'Taxing the Rich Is a Really Good Idea'

"Hey, hey! What we knew would happen: Make the wealthiest pay their fair share and it finances investments in education, transportation, and more," said Rep. Pramila Jayapal.

www.commondreams.org

 

[flylowgethigh]

They raised the debt ceiling 4 TRILLION bidenbux, just 'cause. The creditors of the past have turned away from uncle sugar's debt, and are buying something that is real money. The .guv is officially broke. Debt will never ever be repaid.