The United States is Broke! The Six Presidents Causing #USBankruptcy
The Six Presidents Causing US Bankruptcy By Egon von Greyerz
Since Reagan came to power in 1981, the US has had a total of five presidents who have spent ever increasing amounts of money to hang on to power and buy votes. This has resulted in the most extraordinary money printing venture in history. It is not just central banks that print money. Governments that borrow vast amounts of money are also performing a printing function since money is created out of thin air. And even worse than that, the US government neither has the intention, nor the ability to ever repay the debt with real money. Thus the US debt can only vaporise when the country defaults. Since there is no other way of eradicating this debt, a default by the US is guaranteed to take place in coming years. But before that the Fed and the US government will flood the market with jumbo jet money since helicopter money won’t suffice. Jumbo jet money will create hyperinflation but it will never repay the debt since all it does is to increase the amount of debt outstanding from trillions of dollars to quadrillions.
After 55 years of US deficits debt has grown from $286Bn to $19.6T
The US economy showed natural growth without deficit spending until 1960. At that point, heavier involvement by the US in the Vietnam war created the initial deficits. As Eisenhower handed over to Kennedy in 1961, US debt was only $286 billion. Then 20 years later during the first year of Reagan’s presidency, US debt reached the staggering sum of $1 trillion.
Reagan was hailed as a superb president primarily because he (like Thatcher in the UK) assumed power at the bottom of the economic and stock market cycles. So they were lucky to get in at the right time. But few people realise that Reagan achieved this by almost tripling debt from $0.9 trillion to $2,6T. So in eight years Reagan incurred $1.7T of debt which is almost twice what all the presidents before him had incurred since 1789. And from then on every single president continued on the neck braking deficit course. Most people believed that Clinton managed the US economy particularly well and created surpluses for the first time in 35 years. But what the Clinton administration succeeded particularly well with was to cook the books rather than to create surpluses. Because in every single year of the Clinton administration, federal debt increased in spite of the fact that budget surpluses were shown. And by the time Clinton left in 2001, he had managed to add another $1.6T debt to make the total $5.7T.
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