This article was last updated on May 26
Well the time is here now to get an update on our national funds and the picture isn’t pretty. All the federal bailouts, treasury cash injections and foreign infusion of funds into our institutions/stocks has meant that America’s national debt passed $25,000,000,000,000 this week. To put this in perspective, the recent CARES act to bailout the economy from the Coronavirus induced rescission is only 7% of the foretasted national debt, small change by comparison. Unfortunately longer term the national debt is set to go even higher; thanks to funding needs for the ongoing government intervention and regulatory activities. This means $25 trillion will be old news by the end of the year, with $30 trillion (or $850,000 per household) in range by the end of next year if we keep up the current pace of spending. Fully funded social security and universal health care are fast becoming pipe dreams.
The US dollar, despite the picture, is still holding up well thanks to the perception that we are moving towards a recovery while the rest of the world is just entering the nadir of a global recession. However, once the global economy recovers the US dollar will not fare nearly as well and should fall sharply in lockstep with the rising national debt. Our future generations will have a heavy burden on them indeed.