President Obama is set to leave a massive near $20 trillion debt crisis for his successor – be that Hillary Clinton or Donald Trump.
The U.S. national debt reached $19.5 trillion last week and has been increasing by roughly $1 trillion a year during his Presidency and during the so called “recovery” as the U.S. government continues to spend money like a drunken sailor.
President Obama gestures while speaking at Concord Community High School in Elkhart, Ind., on June 1, 2016. (Associated Press)
During Obama’s presidency, the total national debt has risen from $10.6 trillion to nearly $20 trillion – see Debt Clock here. There is also the not insignificant matter of the between $100 trillion and $150 trillion in unfunded liabilities – for medicare, medicaid and social security.
The U.S., like the EU and most western nations, is “kicking the can down the road.” Consequently, a U.S. and global debt crisis looks likely during the term of the next President if not sooner. The Washington Timesreported last week:
With federal budget deficits on the rise again, the White House Wednesday officially kicked the problem down the road to the next president.
Asked about Congressional Budget Office projections that the federal deficit will spike 33 percent this year, White House press secretary Josh Earnest cited reasons including an aging population and Republican-sponsored tax cuts.
Then he added, “There’s certainly a lot of money that can be saved, and this will be a challenge that the next president and the next Congress will have to do.”
This and the fact that neither Presidential candidate has articulated concerns about the once again ballooning national debt and is it is not an issue in the campaign is leading to well founded concerns that a new debt crisis is looming right around the corner. From the Buffalo News:
When Clinton or Trump takes the oath of office on Jan. 20, he or she will owe those investors nearly $20 trillion. Right now, the debt amounts to $60,100 for every man, woman and child in the country.
We are supposed to be in an economic recovery. Yet the debt has more than doubled from what President Obama inherited from President George W. Bush, and many times what President Bill Clinton passed on to Bush in 2000.
The debt is not a forgettable thing, such as who won the men’s 1,500-meter race at Rio. It is a monster problem. It’s Jabba the Hutt looking for meat; it’s firewood smoldering in the cellar.
The situation is not sustainable – meaning the worst kind of crisis for everybody is looming around the corner.
Investors will continue to lend to us at low interest rates only as long as they can expect regular repayment.
In personal terms, the debt bill is larger than at any time in our history other than right after World War II.
This continuing surge in the U.S. national debt to the $20 trillion level means that the U.S. is now the largest debtor nation in the world – by a significant margin. Its total debt of over $120 trillion means it is the largest debtor nation the world has ever seen.
This profligacy will be paid back by the people of the U.S., and most likely by people in all indebted western nations, in the form of higher taxes, higher interest rates, inflation, currency wars involving devaluations and almost certainly a currency crisis involving the dollar and other leading fiat currencies.
Owning gold coins and bars in your possession and owning bullion in allocated and most importantly in segregated accounts will continue to protect and grow wealth in the coming years.
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On January 8, 1835, President Andrew Jackson proclaimed that the last installment of our national debt had been paid, and that the United States was debt free! This was the only time in American history that the U.S. had no debt.
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