It’s Only Money
The latest monthly statement from the U.S. Treasury Department indicates that the United States borrowed $1.4 trillion in the first nine months of the current fiscal year…including $120 billion last month alone.
The Committee for a Responsible Federal Budget notes that this is higher than the amount for the same period last year, and puts us on track to borrow $2 trillion or more in the current fiscal year alone.
But that’s fine, our credit is good…or is it? That’s fine, we’ll just print whatever money we need…which devalues current money. That’s fine, it won’t come due while we’re around…except it will.
Keep in mind that unless something is done, Social Security will be out of money in 2032 if not before, triggering automatic massive benefit cuts. Keep in mind that this is July 14…and there are only 78 days before the end of the current fiscal year, with no sign that lawmakers are close to funding any part of the government for the fiscal year beginning October 1. And since Congress will be out for the month of August for the annual vacation, and out for the month of October for campaigning…there’s precious little time before another government shutdown begins, a scant month before election day.
The Committee for a Responsible Federal Budget has suggested bringing the deficit down to three percent of GDP, or creating a bipartisan commission to address the whole list of fiscal challenges the country faces. But that would be constructive steps toward fixing a problem, and the current crew in Washington—on both sides—have no interest in that. They must not…or else they’d at least talk about it, rather than talk about each other.
