The Federal Reserve serves as the engine that makes all of the US government’s unconstitutional spending possible. Without the Fed, the entire system would collapse.
Just consider this: in March and April of this year, the Federal Reserve effectively monetized 100 percent of the new debt taken on by the U.S. government.
On June 9, the national debt surged above $26 trillion. Just over one month before that, the debt eclipsed $25 trillion. And 28 days before that, the national debt stood at a mere $24 million. May’s budget shortfall came in at a staggering $398.8 billion, pushing the fiscal 2020 deficit to $1.88 trillion
And there is no end to the borrowing and spending in sight.
After the stock market tanked last week, the Trump administration tried to do damage control and talk the economy back up. In his podcast, Peter Schiff said the damage control fell flat. In fact, everything the government is doing claiming to help isn’t helping at all.
Protests have rocked the US in the wake of George Floyd’s death at the hands of a Minneapolis police officer. In some areas, peaceful protests have crossed the line into violence and looting. But the real question is what are the long-lasting political ramifications that will come out of the unrest?
Peter Schiff talked about it during a recent podcast and worried that it could lead to bigger government and more socialism.
Federal Reserve Chairman Jerome Powell went negative in a webcast speech on Wednesday, May 13.
I’m not talking about negative interest rates, although that could be coming down the pike as well. Powell went negative on the prospects of a quick economic recovery.
He’s right about the prospects for the economy, but he’s wrong about the solution. That’s because he doesn’t even realize it’s Fed policy at the root of the problem to begin with.
That’s how long it took to add another $1 trillion to the national debt.
Welcome to your future. Your government is spending it right now. And your children’s and grandchildren’s future to boot.
The US Treasury plans to borrow $2.99 trillion in the second quarter. The Treasury also plans to borrow another $677 billion in the July-September quarter, bringing the total fiscal 2020 debt to $4.48 trillion.
It’s a level of borrowing that’s difficult to even wrap your head around.
The US government posted another massive deficit to start out calendar-year 2020.
According to the latest data released by the US Treasury Department, Uncle Sam spent $32.6 billion more than it took in last month. That compares with an $8.7 billion surplus in January 2019. Analysts had projected an $11.5 billion shortfall in January.