America’s national debt will increase to almost twice its current sizethanks to legislation Congress passed over the last year. Also,the federal deficitwill expand to over $1 trillion for the first time in 2022 because of the same laws.
The national debt, which was $14.70 trillion in 2017, will grow to $28.70 trillion by 2028, Seeking Alpha Contributor Elliott R. Morss revealed. Morss based his predictions on a report from the Congressional Budget Office.
The federal government’s deficit will grow from $630 billion in 2017 to $1.08 trillion in 2022, andit will rise to $1.14 trillion in 2028 because of the same legislation. The national debt is the amount of money the government owes to creditors. The deficit is the amount by which federal spending exceeds tax revenue.
The debt and deficit will soar because of three laws passed by Congress: last year’s tax reform, the Bipartisan Budget Act, and the Consolidated Appropriations Act. If those laws remain on the books for the nexttenyears, Morss predicts they will cut federal revenues by 4% or $1.7 trillion and increase federal spending by $1 trillion or 2%.
National Debt Will Be 96.20% Of GDP By 2028
Morss has predicted that by 2028, the national debt will be almost as massiveas the gross domestic product (GDP), which consists of all the money generated by America’s economy.
The debt amounted to 76.5% of the GDP in 2017, and by 2028, the debtwill consume 96.2% of the GDP, as a chart made by Morss indicates. That means the debtmight be higherthan the GDP as soon as 2029 – just 11 years from now.
Disturbingly, Morss might be optimistic with his percentages. His chart estimated the U.S. GDP might be $22.33 trillion in 2028, while the national debt would be $28.7 trillion.
U.S. Treasury Floods Markets With Debt To Raise Cash
Uncle Sam already hasa hard time finding enough moneyto pay the bills. The U.S. Treasury flooded the securities markets with a record $179 billion in debt in a few hours on February 20.
That was only part of $258 billion in debt the Treasury sold during the week of February 20, 2018, Bloomberg Marketsreported. That sale was the most significantauction of debt since the financial meltdown during 2008. The debt takes the form of Treasury bonds and other securities.
The Danger from Debt: Hyperinflation
The most considerabledangers from debt and deficit spending are inflation and hyperinflation. Unsustainable levels of debt can destroy a nation’s currency.
That has already happened in Venezuela where the government accumulated around $60 billion in debt it cannot pay. As a result, Venezuela is suffering from hyperinflation; prices in the country rose by 6,147% between February 2017 and February 2018.
People can prepare for more massivenational debts and higher federal deficitsby moving their money out of U.S. dollars. Investments worth considering includeprecious metals like gold and silver, real estate, U.S. stocks, foreign stocks, cryptocurrencies, and foreign currencies.
Getting out of the dollar would be a smart move because it is unlikely that Congress will cut spending or increase taxes in the foreseeable future. Frankly, I see it as an impossibility.
The truth is, when so many families are already facing serious financial issues, does anyone their right mind think this will end with a whimper instead of a nightmarish financial bang?
Since we’ve already destroyed the foundations which kept us free, we should begin immediately to rebuild our economy on a rock solid Christian foundation.