Tracking the U.S. government’s journey towards bankruptcy
On January 15th, I penned the first of a 4 part series entitled U.S. government, on its way to bankruptcy. For those who missed the series, an intro and links to all 4 parts…
The U.S. government is quite literally out of control.
I’m not talking about a government which shows an almost total disregard for the U.S. Constitution. I’m not talking about elitist politicians in Congress who think they know what’s best for you, who think it’s their job to take care of you from cradle to grave, whether you like it or not. I’m not even talking about an administration whose policies sometimes appear to have more in common with the command and control societies of Benito Mussolini or Karl Marx than they do with the freedom loving societies of Thomas Jefferson and James Madison.
No, what I’m talking about is a government whose fiscal finances are a mess. I’m talking about a government that, because of these policies, thinks nothing of spending what it does not have, of committing to obligations that it can not possibly keep, and then trying to stick someone else with the bill.
I’m talking about a government that’s on its way to national bankruptcy.
In the following four posts, through the story of Peter and Paul, I have attempted to lay bare the facts of a government whose obligations are so big, and growing so fast, that unless millions of Americans are about to be told that they are not getting what they were promised, because it simply costs too much, or that millions of U.S. government debt holders are not getting their money back, because America can’t afford it, there will come a time when the only way out for the U.S. government, to make good on its promises, will be via the wholesale use of the policy of inflation. In other words, by devaluing those obligations by printing money.
National bankruptcy through the Federal Reserve’s printing press.
Part 1. Peter doesn’t know the half of it
Part 2. Peter’s bill, going from bad to worse to No Can Pay
Part 3. Peter and Paul have some friends, for now
Part 4. Peter and Paul are about to get fleeced
Beginning with today’s post, I offer up my supporting tables and charts, so you can track the U.S. government’s journey towards bankruptcy, right along with me…
Foreign Investment Flows into Treasuries/Agencies
In the future, expect monthly updates to these data series, future enhancements too, here on my site THE CONTRARIAN TAKE. You will find the links under What I’m Up To at the bottom of the right column of the site. I’m calling it Economic Data & Charts, with an Austrian Slant.
Running commentary and analysis of these series will appear in future posts.
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I would like to thank Derek Au for his helpful comments and technical guidance in the creation of these tables and charts as well as all the staff at True/Slant.
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I don’t think most people understand the gravity of the federal government going bankrupt. As a San Diego bankruptcy lawyer, I see almost every kind of bankruptcy on a daily basis. The government going belly up? That would be catastrophic.
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