Friday, November 16, 2018

Debt blow out

I'm sort of obsessed with the national debt, which is why I started this blog.  I think if it grows just a little bit, that it might be sustainable indefinitely, and we can truly enjoy the free lunch.  If it grows too fast, however, then the laws of compound interest and exponential hyperinflation will take over and the whole thing will crash.  I think the growth should stay within 0.6% per month, which by the rule of 72 means a doubling every 10 years.  Any faster than this indicates danger.

Oct 31, 2018 ended with $15.843 trillion of Debt Held by the Public.  So I would allow a very generous $95 billion of government deficit spending for the month. 

Well guess what.  The month is only half over and the Debt Held by the Public is at $15.942 trillion.  so we have already deficit-spent $99 billion this month.  At this rate we will hit $16 trillion within a month.

So I think it is out of control.  We usually have a surplus in January, so maybe things will slow down a little.  But as of now, we are going too fast.

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