Why Haven't US Had A Debt Crisis... Yet?

 

 Why Haven't US Had A Debt Crisis... Yet? 

https://youtu.be/mlc1_IYWMzk?si=TCjC4I7PabK8wtV0

 

 For as long as most of you have been alive, we have been told that federal debt is a major crisis just waiting to happen. 

For more than a quarter of a century at this point we have become very well acquainted with images of this debt clock, and the increasingly regular government shutdowns where they play hot potato with this ballooning hand grenade. 

 If all of that wasn’t annoying enough there is almost the uniform flip flop between politicians taking turns to be very concerned about “fiscal responsibility” depending on if they are in or out of power at that time. It’s a powerful message… but they do seem to forget about it pretty quickly once they are in office and fixing it would require actual sacrifice, and if we are being honest with ourselves, it’s almost easy to see where this indifference is coming from. 

We were told we were at an inflection point when we crossed 10 trillion dollars in debt, and then 20 trillion, and now we are approaching 40 trillion dollars in total debt or 130% of our GDP… 

The rate in which we are taking on new debt is also accelerating, almost half of all of our outstanding borrowing has been done in just the last 6 years… and yet… on the surface, you would be forgiven for thinking… not much has changed… 

And I don’t just mean that in the sense of “why haven’t we turned into Greece yet?” because this also raises a more important question… the government has spent 15 trillion dollars more than it has brought in through taxes in just the last half decade alone… so why don’t we “feel” 15 trillion dollars richer? When will this debt, actually become a problem?