Friday, April 22, 2016


According to the US Debt Clock here their national debt currently stands at $19.252 trillion dollars; the federal budget deficit is at $498.110 billion dollars while net annual interest on the debt amounts to $241 billion, the sixth largest budget item.

It has to be a worry that neither Trump nor Clinton has a plan to get US spending under control ... Trump promising to reduce taxes and Clinton promising to increase spending.   The corollary to that is that the US will continue to print money in the form of T-bills, T-notes, T-bonds and T-Inflation Protected Securites (TIPS).    Neither candidate has the gonads to do a Key or English and commit to a budget providing for a surplus which would allow for the paying down of debt.

At some time in the future China or whoever may well just say no to more lending and call in their debt or, failing that, offer/demand Alaska in lieu ... now that would really get Sarah Palin going.


Anonymous said...

Why the focus on China.

"China spent the first few months of 2015 selling debt and calling in loans, decreasing its total to less than $1.2 trillion. Meanwhile, Japan increased its holdings of U.S. debt to over $1.23 trillion, taking over the top spot among foreign creditors."

All foreign investors collectively hold 34%, not enough for a takeover of Alaska.

The Veteran said...

Anon ... I said China or whatever ... I guess China because of its supposed 'bogyman' status.
Genuine question ... are you sure you're correct in the ascertain that 66% of the debt is US held.

Perhaps my maths ain't too good but with the US population at a 323.4m and the average savings per citizen calculated at $8.893 = $2.907 trillion and that only equates to about 15% of the National debt ... or am I missing something?

Noel said...

Your 15% could be correct for 2016. It was around 13.3% a couple of years ago.

Ah......yes you are missing something.

Noel said...

Sorry more recent figures show foreign investors are owed 33.4%

Anonymous said...

"Sorry more recent figures show foreign investors are owed 33.4%"
I'll accept that.

Pie chart I saw was 2014 with 34% foreign and 66 percent US.

Anonymous said...

Key/English have gonads?




That's really funny veteran.