In March 2018 I wrote the following:
To be fair to President Trump, soaring federal debt doesn’t have to mean total U.S. debt soars as well. After all, nothing pushes up debt as a percent of GDP more than a deep recession, which reduces GDP and causes federal tax revenues to plunge and social service costs to soar…Following the Trump tax cuts, it is possible that households and businesses could use the additional money floating around as the federal government goes broke to reduce their own debts, and to buy up all those extra U.S. Treasury bills and bonds. Remember “we owe it all to ourselves?” But that’s not the way to bet.
I’m glad I didn’t take that bet. For now.
Federal Reserve Z1 data was released for 2018 on March 7, and thanks to another future selling, anti-America (as a collective) Republican President, the federal debt indeed has begun to soar again. Business debt is also soaring, even as investment in the United States remains low, as the executive/financial class pillages American business to buy back stock and inflate executive pay, while pillaging the future of the companies they work foragainst. Following The Donald’s private-sector example.
But total U.S. credit market debt did not soar. By not buying houses at inflated prices and saving rather than borrowing, screwed later-born generations are desperately trying to secure their own futures. Even as those in control of our public and private institutions continue to sell their collective future out from under them, cashing in whatever is left. As a result their savings, placed with these institutions, are likely to go “poof” eventually. And buying a house is an even worse bet.