MAR 2, 2018
Cheering recent US economy is “growth” is like cheering on a bonfire that is made of charred embers kept aglow only by a constantly poured stream of gasoline. There’s no sustenance underlying the pyrotechnics, no even-burning dry tinder to keep it going if the spigot of dirty, cheap, hot and fast fuel is shut off.
As of October 1st of 2007 (the start of the 2008 Federal Government fiscal year), federal debt stood at $9 trillion and 70 billion. In the subsequent ten years and nearly five months, the US federal debt has grown $11 trillion and 785 billion and now stands at $20 trillion and 855 billion (chart below).
Over the same period, US GDP grew $5 trillion and 169 billion. Simply put, for every $1 of new federal debt undertaken, the US achieved $0.44 cents of economic activity or "growth".
The US Treasury is telling you that between the federal debt and unfunded liabilities, the US is $70 trillion in the hole and despite record tax revenue, record stock and real estate valuations...the US is bankrupt.
Of course, the US can never "technically" go bankrupt as it will issue new debt at an accelerating rate to pay the old debt...but this has been the "end times" for every empire. Debasement is the functional equivalent of national bankruptcy, the only means to pay just the interest on the debt is creation of new debt at an accelerating rate.
ORIGINAL SOURCE: The Faster America "Grows", The Faster America Goes Bust by Chis Hamilton at Economica on 3/1/18