National Debt and The Government Shutdown

By Rich Kozlovich

The last couple of weeks the media has been the "secret" supporters of the Democrat's position on the government shutdown in their war to once again attempt to destroy The United States America.   All this spending plays into the strategy by creating an entire society based on government dependence, giving them the power to destroy the Constitution and have leftists take over the government at all levels creating a totalitarian socialist society.  Truth be told, if Kamala Harris had been elected, it might have happened, and it can still happen as we're seeing the invertebrate Republicans beginning to buckle to Democrat demands.  

Once again.... definition leads to clarity, and for clarity's sake...... fascism isn't right wing, it's left wing, it's socialism.  Socialism is the mother philosophy of both fascism and communism, two sides of the same coin, and truth be told, totalitarianism if foundational to all the "isms", and has been since the French Revolution. 

• San Diego launches 'friendly' inspection teams to go digging through people's trash cans in search of recycling violations
• The left wants to save democracy by destroying it

I've written a lot on the dangers of our national debt and what do to about it in

$9 trillion: foreign treasury surge!, saying:

 The UK has overtaken China as the second-largest foreign holder of U.S. Treasuries, as total foreign ownership hits an all-time high of $9.05 trillion.

• Foreign holdings of U.S. Treasuries hit $9.05 trillion in March
  
• The UK surpasses China, now second only to Japan in U.S. debt holdings
  
• China cuts its holdings to $765 billion, continuing a five-month selling streak
  
• Japan remains top holder with $1.13 trillion in Treasuries
  
• Analysts cite trade tensions and diversification as drivers of China’s divestment 

Whether this reshuffle signals a fleeting trend or a structural pivot remains to be seen. But for now, the message is clear: trust in U.S. debt endures, even if China is taking a step back.  

So, that says foreign nations trust American debt?  Really?  What it says to me is these are loser nations who are major owners of America, and America has reached a turning point on debt, and the Big Beautiful Bill added trillions of dollars in national debt, and the media plays along with this outrage.  

For that matter we really need to start asking what is the justification for borrowing 38 trillion dollars to fund every idiotic costly political pandering scheme ever developed, and that includes both parties.  With an interest payment of "$881 billion in 2024 and projected to nearly double to $1.6 trillion by 2034. These rising costs now surpass spending on areas like Medicare and national defense, and are projected to become the second-largest category of federal spending."

 This can't go on.

Senator Everett Dirksen once said 

"A billion here, a billion there, and pretty soon you're talking real money", and while it's being said he really didn't say that, he never retracted it in his lifetime either.  The fact is he's been categorized as being fiscally conservative and socially liberal, which is in fact cognitive dissonance, and his voting record shows that, and so too does that kind of cognitive dissonance apply to the Congress and the administration today. 

My grandfather was one of the world's great economists.  He said if you spend more than you make you'll go broke.  He made his living as a coal miner and a farmer, but he wasn't a stupid coal miner/farmer, unlike so many economists I've read over the years.  It's said statistics is an arcane science as you can make statistics say whatever you want them to say, and I think that applies to economics as well.  But in the end, if you spend more than you take in, bankruptcy follows.  It really is that simple.

 Update:   Bad News on the National Debt - It's now $38T, the fastest accumulation of $1T outside of the pandemic. In the midst of a federal government shutdown, the US government's gross national debt surpassed $38 trillion Wednesday, a record number that highlights the accelerating accumulation of debt on America's balance sheet,

Kent Smetters of the University of Pennsylvania's Penn Wharton Budget Model, who served in President George W. Bush's Treasury Department, told the Associated Press that a growing debt load over time leads ultimately to higher inflation, eroding Americans' purchasing power and making it less possible for future generations to achieve home ownership goals. The Government Accountability Office outlines some of the impacts of rising government debt on Americans—including higher borrowing costs for things like mortgages and cars, lower wages from businesses having less money available to invest, and more expensive goods and services.

The Joint Economic Committee estimates that the total national debt has grown by $69,713.82 per second for the past year. Michael Peterson, chair and CEO of the Peter G. Peterson Foundation, said in a statement that "reaching $38 trillion in debt during a government shutdown is the latest troubling sign that lawmakers are not meeting their basic fiscal duties." "Along with increasing debt, you get higher interest costs, which are now the fastest growing part of the budget," Peterson added. "We spent $4 trillion on interest over the last decade, but will spend $14 trillion in the next ten years. Interest costs crowd out important public and private investments in our future, harming the economy for every American.".......