


CNBC: The recent debt deal between the White House and Congress virtually guarantees trillion-dollar deficits well into the future.

  • A Credit Suisse analyst says that if the Fed doesn’t cut interest rates, markets could be disrupted by the big influx of debt.
  • Taxpayers have shelled out nearly half a trillion dollars already this year for debt servicing costs. more …

Opinion: With all eyes on the death of Jeffery Epstein, the Chris Cuomo tirade, and Joe Biden’s gaffes, the Federal government deficit/spending report barely got noticed yesterday.

Old axiom: Democrats are known for social programs – Republicans are known as fiscal conservatives. Wait, what was that again?

Yesterday morning’s Financial Headline:

Fed Spending Sets Record Through July; Treasury Runs $866,812,000,000 Deficit

“The federal government spent a record $3,727,014,000,000 in the first ten months of fiscal 2019 (October through July).”

That, my friends, is a 27% increase over last year which means that when it comes to spending, there is now no difference between the two parties, and that is a frightening reality.

The talk of QE 4 (printing fake money as stimulus) is gaining traction as the bond market just signaled the ‘R’ word. If a recession hits, the Federal Reserve will have no choice other than to crank up the ol’ printing press for stimulus since there is scant room to lower interest rates enough to get the economy going. Europe is by far in worse fiscal shape.

If we don’t destroy ourselves with a breakdown in civility (here), we most certainly will do it with debt, recalling words of wisdom from the smartest and wealthiest man who lived 3500 years ago:

The rich rules over the poor,
And the borrower is servant to the lender.” Proverbs 22:7

It may come as a big surprise but the biggest debt the US owes is not to China (1.1 trillion). The US owes $5.9 trillion to itself. Most of that comes from the government borrowing from the Social Security Trust Fund. source

So if a big enough recession were to hit, both pensions and Social Security payments would virtually stop unless the printing press kept going. QE 4, 5, 6, 7 …

Zimbabwe calling (Revelation 6:5-6).