National Debt: $31.7 trillion (continues)
State and Local Debt: $3.5 trillion (continues)
Total Debt: national, state, local, personal, business, mortgage, credit card, etc. $96.2 trillion
Unfunded Liabilities: $187.7 trillion (continues)
All these 'numbers' continue to INCREASE daily. The lifestyle of American's is totally based on credit/debt and a continuing increase in credit/debt (forever). There is no way to solve this problem of credit/debt without a total liquidation via bankruptcy. America is technically bankrupt (now) and the math is impossible to balance. Even our prior President, Donald John Trump, is suggesting a default in our debt!
Our politicians are aware of this debt situation but they also are aware that they do not want a solution (as of now). A solution would mean that American's must accept serious austerity and then they would need to cancel all the debt and start over with a NEW MODEL. This would mean another GREAT DEPRESSION. Our politicians will do all they can to AVOID this end game.
The current economics model (accepted by our leaders) is called KEYNESIAN economics. This model developed after the LAST great DEPRESSION of 1929-1937. An economist by the name of John Maynard Keynes proposed to our then President, Franklin D. Roosevelt (1934) that to solve our economic situation the government would need to be involved to create new DEMAND within the marketplace.
This so-called DEMAND management idea would need to continue indefinitely so that our economy could expand and grow indefinitely. Debt and credit were the TOOLS for this new MODEL. The downside to this MODEL was that a DAY of reckoning would eventually arrive (but it would be some 80 or 90 years before our debt would become a survival problem). That day has now arrived!
In 1934, this concept of an eventual day of reckoning was not viewed as a problem. So our economic leaders adopted this Keynesian MODEL as a temporary solution so that we could get out of this GREAT DEPRESSION of the 1930's. With the addition of a major world war on the horizon this model of debt and credit was a solution that worked for America and later the entire world. Amazing!
The problem today is that this DAY OF RECKONING has now arrived for America (and the world). Worldwide debt is beyond repayment and so is American debt. Our economic system can continue for a period as math and numbers are flexible and manipulable. All our money units are now merely NUMBERS in the computer screen and this situation allows our authorities to manipulate these numbers continually.
Manipulation of prices, business accounts, personal accounts, and our Central Bank accounts allows this game of NUMBERS to continue for a season. Money today is digital (a mere 'number' in the computer). So this game of debt and credit will likely continue UNTIL it is totally REJECTED by our markets. Money is a confidence game and adding new numbers to existing numbers works for a season. Today, we have used QE (quantitative easing) to maintain solvency in our major accounts and keep asset prices elevated.
All this could be ending soon, however, as this game of MONEY is a psychological confidence game. When a majority of traders, savers, and money managers decide that the manipulations are beyond reason, then a SELLING of stocks and assets will produce the NEXT great DEPRESSION. The day of reckoning will arrive when the psychology of money turns totally negative. When will this happen?
My sense is that this day of reckoning is on the horizon for 2023 and 2024. America may lead the world into the NEXT great DEPRESSION. The symptoms are emerging daily as I watch our world markets in real-time. So far, the confidence game is holding up. Our Central Banks are working behind closed doors to try and stabilize confidence via their continual manipulation of prices, interest rates, and lending policies. It has worked to date (to an acceptable degree).
My sense is that this confidence game could END rather soon, however. A growing body of thinkers are becoming AWARE that our problem is endemic (with no solution). This body of thinkers will grow over time and then the general public will become AWARE. My sense is that this event could happen later in 2023 and most likely in 2024. I see SIGNS everywhere...and America's DEBT CEILING problem is merely ONE symptom. The world problem will assure everyone that this issue continues UNTIL it ends.
CONFIDENCE continues for now. The money game continues for now. Deception and lack of understanding by the public helps to continue the mirage/charade. But the issue of DEBT will not vanish or go away. It's ENDEMIC. We will need to accept that our problem is endemic and without a solution. We need a NEW MODEL for economics and commerce (for the entire planet). That is our SITUATION IMO.
www.usdebtclock.org
Keynes met FDR in 1934 and proposed his New Model of credit/debt as a solution for the Great Depression. FDR accepted the model for America. It then expanded to the world markets.
Biden and his economic advisors are continuing the Keynesian model (now on steroids). The new 'name' for this Biden economic model is called MMT (modern monetary theory). Spend continually and indefinitely! Don't worry about debt or paying off the debt.
Think for yourself on all these difficult issue of reality. I am: Donald B. Swenson, Economist/Philosopher, donaldswenson.blogspot.com.
http://kingdomecon.wordpress.com
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