The Federal Government Will Spend $685 Billion Subsidizing Health Care in 2018

Julia Cohen – May 23, 2018

The federal government will spend $685 billion subsidizing health care for people under 65 in 2018, according to a Congressional Budget Office report released Wednesday.

The funds are expected to equal 3.4 percent of gross domestic product in 2018, creeping up to 3.9 percent by 2028. The majority of this money will go towards Medicaid and the Children’s Health Insurance Plan, which covers about a quarter of Americans under the age of 65.

Over the next ten years, the Affordable Care Act’s Medicaid expansion is set to cost the federal government an additional $842 billion in addition to what they would have had to pay for without the Obama-era health care reform, according to the report.

http://dailycaller.com

Global debt balloons to all-time high of $164 trillion

RT – May 1, 2018

The world is now 12 percent of GDP deeper in debt than it was at the peak of the financial crisis in 2009, says the International Monetary Fund (IMF). China was described as a “driving force” behind the new debt levels.

According to its Fiscal Monitor report, global debt is at a historical high, reaching the equivalent of 225 percent of GDP.

“One hundred and sixty-four trillion is a huge number,” said Vitor Gaspar, head of the IMF’s fiscal affairs department. “When we talk about the risks looming on the horizon, one of the risks has to do with the high level of public and private debt.”

The ballooning debt could make it harder for countries to respond to the next recession and pay off debts if financing conditions tighten, according to the fund.

https://www.rt.com

Fed Official Sounds Alarm Over National Debt

TruNews – February 22, 2018

The president of the Federal Reserve Bank in Dallas is sounding the alarm over the current trajectory of the U.S. national debt, which is projected to grow to $30 trillion within a decade.

Robert Kaplan wrote, in an essay published by the government bank on Wednesday:

“Unfortunately, while the U.S. consumer has deleveraged since the Great Recession, business debt as a percentage of GDP has increased, and U.S. government debt levels have increased substantially. While increased business debt is likely manageable, U.S. government debt held by the public is now 75 percent of GDP, and the present value of underfunded entitlements is now approximately $49 trillion. There is a legitimate concern that the projected path of U.S. government debt relative to GDP is unlikely to be sustainable.”

https://www.trunews.com

Will America’s Prosperity Be Completely Wiped Out By Our Growing Debt?

Michael Snyder – October 29, 2017

The federal government is now 20.4 trillion dollars in debt, and most Americans don’t seem to care that the economic prosperity that we are enjoying today could be completely destroyed by our exploding national debt.  Over the past decade, the national debt has been growing at a rate of more than 100 million dollars an hour, and this is a debt that all of us owe.  When you break it down, each American citizen’s share of the debt is more than $60,000, and so if you have a family of five your share is more than $300,000.  And when you throw in more than 6 trillion dollars of corporate debt and nearly 13 trillion dollars of consumer debt, it is not inaccurate to say that we are facing a crisis of unprecedented magnitude.

Debt cannot grow much faster than GDP indefinitely.  At some point the bubble bursts, and when it does the pain that the middle class is going to experience is going to be off the charts.  Back in 2015, the middle class in the U.S. became a minority of the population for the first time ever.  Never before in our history has the middle class accounted for less than 50 percent of the population, and all over the country formerly middle class families are under a great deal of stress as they attempt to make ends meet.

http://theeconomiccollapseblog.com

The World Is Now $217,000,000,000,000 In Debt And The Global Elite Like It That Way

Michael Snyder – June 29, 2017

The borrower is the servant of the lender, and through the mechanism of government debt virtually the entire planet has become the servants of the global money changers.  Politicians love to borrow money, but over time government debt slowly but surely impoverishes a nation.  As the elite get governments around the globe in increasing amounts of debt, those governments must raise taxes in order to keep servicing those debts.  In the end, it is all about taking money from us and transferring it into government pockets, and then taking money from government pockets and transferring it into the hands of the elite.  It is a game that has been going on for generations, and it is time for humanity to say that enough is enough.

According to the Institute of International Finance, global debt has now reached a new all-time record high of 217 trillion dollars

Global debt levels have surged to a record $217 trillion in the first quarter of the year. This is 327 percent of the world’s annual economic output (GDP), reports the Institute of International Finance (IIF).

The surging debt was driven by emerging economies, which have increased borrowing by $3 trillion to $56 trillion. This amounts to 218 percent of their combined economic output, five percentage points greater year on year.

Never before in human history has our world been so saturated with debt.

http://theeconomiccollapseblog.com

What Is America Going To Look Like When Stocks, Home Prices And Even Used Cars All Crash By At Least 50 Percent?

Michael Snyder, on April 2nd, 2017

Have you ever thought about what comes after the bubble?  In 2008 we got a short preview of what life will be like, but most Americans seem to have come to the conclusion that the last financial crisis was just a minor bump in the road toward endless economic prosperity.  But of course the truth is that the ridiculously high debt-fueled standard of living that we are enjoying now is not sustainable, and after this bubble bursts it will be an extremely painful adjustment for our society.

Since the last financial crisis, the U.S. national debt has nearly doubled, corporate debt has doubled, stock valuations have reached exceedingly ridiculous extremes, the student loan debt bubble has surpassed a trillion dollars, we are facing the largest unfunded pension crisis in U.S. history, and in many parts of the country (particularly the west coast) we are facing a housing bubble that is even worse than the one that burst in 2007 and 2008.

And even with all of these bubbles, U.S. GDP growth has been absolutely anemic.  Even if you believe the grossly manipulated numbers that the federal government puts out, the U.S. economy grew at a “miserably low” rate of just 1.6 percent in 2016…

http://theeconomiccollapseblog.com

Federal Debt Held By Public Now At Highest Level Since World War II

– March 30, 2017

Federal debt held by the public is set to hit 77 percent of gross domestic product by the end of this year, the highest level seen since shortly after World War II, according to the Congressional Budget Office’s 2017 long-term budget outlook.

Federal debt held by the public, defined as the amount that the federal government borrows from financial markets, has ballooned over the last decade. In 2007, the year the recession began, debt held by the public represented 35 percent of GDP. Just five years later, federal debt held by the public has doubled to 70 percent and is projected to continue rising.

Debt has not seen a surge this large since the increase in federal spending during World War II, when debt exceeded 70 percent of GDP. The budget office projects that growing budget deficits will cause the debt to increase sharply over the next three decades, hitting 150 percent of GDP by 2047.

http://freebeacon.com

Debt Apocalypse Beckons As U.S. Consumer Bankruptcies Do Something They Haven’t Done In Almost 7 Years

Michael Snyder – February 5, 2017

When debt grows much faster than GDP for an extended period of time, it is inevitable that a good portion of that debt will start to go bad at some point.  We witnessed a perfect example of this in 2008, and now it is starting to happen again.  Commercial bankruptcies have been rising on a year-over-year basis since late 2015, and this is something that I have written about previously, but now consumer bankruptcies are also increasing.  In fact, we have just witnessed U.S. consumer bankruptcies do something that they haven’t done in nearly 7 years.  The following comes from Wolf Richter

US bankruptcy filings by consumers rose 5.4% in January, compared to January last year, to 52,421 according to the American Bankruptcy Institute. In December, they’d already risen 4.5% from a year earlier. This was the first time that consumer bankruptcies increased back-to-back since 2010.

However, business bankruptcies began to surge in November 2015 and continued surging on a year-over-year basis in 2016, to reach a full-year total of 37,823 filings, up 26% from the prior year and the highest since 2014.

Of course consumer bankruptcies are still much lower than they were during the last financial crisis, but what this could mean is that we have reached a turning point.

For years, the Federal Reserve has been encouraging reckless borrowing and spending by pushing interest rates to ultra-low levels.  Unfortunately, this created an absolutely enormous debt bubble, and now that debt bubble is beginning to burst.

http://theeconomiccollapseblog.com

Moving Backwards: Despite Claims of A Recovery, “Economy Is In Reverse”

Paul BedardDecember 6, 2016

Now they tell us.

A new report on the economy finds that productivity growth is at a 50-year low and that much of the positive talk about the nation’s financial situation in the last election, much of it coming from the administration, was a lie.

The report from the U.S. Council on Competitiveness and Gallup finds that for many, the economy is in reverse despite claims that there is an active recovery ongoing, complete with new jobs.

“Conventional wisdom — as reported in many major newspapers and media — tells us the U.S. economy is ‘recovering.’ Well-meaning economists, academics and government officials use the term ‘recovery’ when discussing the economy, implying that growth is getting stronger. The study finds there is no recovery. Since 2007, U.S. GDP per capita growth has been 1,” according to Gallup Chairman Jim Clifton.

“As this report makes clear,” added Council President Deborah Wince-Smith, “productivity growth is in a serious multi-decade-long slump that is dangerously close to stalling completely.”

http://www.washingtonexaminer.com

WTO lowers trade growth forecast

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DW – September 27, 2016

WTO officials on Tuesday dramatically cut the organization’s 2016 global trade forecast by more than a percentage point, citing a marked slowing of GDP growth in many nations, including pivotal emerging economies.

The WTO estimated that global trade would expand by just 1.7 percent in 2016, compared with its April projection of 2.8 percent, and compared with a projection a year ago that trade would swell by 3.9 percent this year.

The UN agency also revised down its 2017 forecast, with trade expected to grow between 1.8 percent and 3.1 percent, down from the previously anticipated 3.6 percent for next year.

The organization said the 2016 downgrade followed a sharper-than-expected decline in merchandise trade volumes in the first quarter. The contraction was driven by slowing economic growth in China, Brazil and other nations.

http://www.dw.com