A New But Disastrous Normal For America: Surging Debt, Booming Economy

by | Jan 8, 2019 | Headline News | 21 comments

Do you LOVE America?


    There’s a new normal in the United States.  It’s the perception of a booming economy while at the same time, seeing a surge in deficits. But this new normal is should be anything but.

    Regardless of whether or not the economy is “booming” or “busting” right now (arguments can be made for both) the rate of debt being acquired by consumers and the ever increasing government deficits are poised to explode. For all intents and purposes, the mainstream media is declaring the economy “booming” so why is there so much of a deficit?

    According to Fortune, in almost every other period in recent history, U.S. deficits have been counter-cyclical. When growth weakens, unemployment rises, so that fewer people are paying taxes. Falling profits shrink revenues from corporate levies, and the government frequently enacts emergency spending measures to recharge the economy. The shrinking tax receipts and temporary outlays swell the deficit. When the economy revives, in contrast, an expanding workforce and a surge in earnings will lift revenues and narrows the budget gap.

    Today, that trend is reversing. Growth and deficits are moving upward in tandem, something that’s happened only briefly in the past. In 2018, GDP expanded at a robust 3.1%, and the Congressional Budget Office forecasts a decent 2.4% reading for 2019. Yet the agency predicts that the deficit will jump by 46% to $970 billion in 2020, rising to 4.6% of GDP and that the shortfall will grow to 7.1% of GDP by 2028 if Congress extends tax reductions that are scheduled to sunset, a likely outcome.

    A December 13 report from the non-partisan Committee for a Responsible Budget (“The Deficit Has Never Been This High When the Economy Was This Strong“) points out that past periods of big deficits were usually accompanied by high unemployment and a large “output gap,” meaning that the economy was operating far below its potential because a big share of the workforce, and swaths of manufacturing capacity, stood idle. -Fortune

    Marc Goldwein, CFRB’s senior policy director acknowledges that the U.S. could keep piling on seemingly unsustainable debt and deficits for years, without triggering a financial crisis. But that limit could be reached anytime too. “You don’t know if a crisis will come next year, or far in the future,” he says. “What you do know is that even now, the deficits are curbing growth.”


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      1. No one ever seems to want to recognize and admit it, but surging debt is essential for our economy to grow, boom, or even remain static.

        That is because our money is debt based, it is borrowed into existence and failing to borrow more means less and less of it available to conduct and expand economic activity.

        Actually, virtually (maybe totally) the entire world operates on this principle.

        The solution would be having the Treasury issue all of our money on a debt free basis as is needed and as directed by congress as debt free United States Dollars to replace interest bearing Federal Reserve Notes (Congress which has the only constitutional authority to issue money).

        But that is not going to happen, there is no public or political will to do this (even among writers and posters on this and similar sites). No one of significance is willing to even discuss this seriously in the public forum (other than maybe Ron Paul might have been in his day).

      2. We are getting the shit beat out of us with all the gloom and doom.

        • …..with all the gloom and doom.

          That hasen’t happened.

          • Everyday.

          • …yet

      3. If the stock market and or the dollar crashes gold & silver will skyrocket. I’m not sure they will want that. Gold has a 6000 year track record, and has never been worth -0- Cant say that about the Dow.
        Witty commentary.

        • Gold and silver will only skyrocket, it they ever do, in direct relation to their dollar value which will make any monetary increases they have meaningless in real terms. You won’t see gold or silver making any real adjusted gains in value when you sell them for the dollars you need to pay bills and buy things.

          FWIW. last few times the market and general economy have crashed the metals didn’t do much of anything, what would make this time any different?

          • Anonymous, precious metals are held in lieu of saving dollars. If the dollar devalues, your saved dollars are devalued. Precious metals that have an increase in valuation have preserved your savings.

            The best example I heard was related to a 1 ounce round gold coin that could buy a suit 100 years ago. That same 1 ounce round gold coin can purchase a suit today. The cash value of the gold coin and the suit changed dramatically over the 100 years. We are advocates of trying to preserve what little wealth we have.

        • I bought silver in December at $14 an ounce, not it is about $15.75.

          That is an indicator that people are loosing confidence in stocks and bonds.

          • Not really an indicator of that, just an indicator that more people are buying in relation to people selling and are willing to pay more for it. It’s a commodity like all other commodities and is subject to the same supply/demand pricing that they are.

      4. You can’t have growth without debt.

        We don’t have money as that is a commodity or natural resource that is universally recognized as having value or a nation has a currency that is strictly tied to such a commodity. We just have fiat currency and it is wildly out of control as 99% are electronic transfers NOT paper currency.

        We really cannot compare the “wealth” of America to say ancient cultures because practically nothing that generates wealth is actually genuine. It’s a bunch of investor optimism without any factual basis.

        You what the real problems are? We don’t make as many things in America as we once did. We are declining in growth because millennials are not marrying, having babies, buying houses, and buying items for them.

        These are facts so optimism about growth is a joke. These facts drive the globalists and RINOs and Demoncrats and Socialists to fear the future and embrace open borders. They KNOW that America is doomed to decline in population growth by citizens. They KNOW the populations is largely aging meaning will need custodial care…but by whom? They KNOW that less will be sold as there will be less consumers. They KNOW that taxes will decline as taxbase dwindles. They KNOW that real wages are half of 1990 levels because the idiots embraced Free Trade policies.

        There is no reason to be optimistic UNLESS we enact protectionist policies, close our borders, generate valid wealth by the middle class owning real estate, have babies, have a genuinely educated workforce, etc.

      5. The mammoth gains in the middle class existed because no countries were producing real producfts except the USA because WW2 happened. To stabilize the world, we did two things. We had the Marshall Plan to rebuild a devasted Europe and Asia. We sold them our products on credit.

        We don’t live in that world anymore. Europe and Asia make their own products and sell us their products. Yet we are reducing our production.

        You cannot have growth without new markets.

        We also stupidly sold armaments because the military-industrial complex thought more armament sales meant production without consequence. Why? Because if every nation is armed to the teeth, they would be at less risk to fight each other. Well, how dumb. Did that strategy work?

      6. Follow the money. See who REALLY makes the decisions that manipulate the economy to benefit the few and not the many.

        Look behind the curtain to see the true anti-wizards.

        It’s true, we’re not in Kansas anymore.

        But by doing research and unearthing TRUTH and then shining LIGHT on the TRUTH by EXPOSING both it and EVILDOERS, then we can get even more traction on goodness and reverse the destructiveness that threatens us all and hastens the Mark of the Beast, already here in chip form.

        Resist the Mark. By doing so you will save your soul.

        God bless you all.

        – the Lone Ranger

      7. XxG-cIiaKeg
        If you need a laugh, watch Survival Family, a Japanese film showing how pathetic and unprepared urban city dwellers are. They luckily run into some folks with some basic skills and then a hobby farmer takes pity on them in exchange for them helping out with common ordinary tasks.

      8. This Saturday at 8 am, the yellow vests in France are planning a bank run. There was a tv movie of the week back in the late seventies where a large number of poor people opened savings accounts in a specific bank, then a few days later, they en masse tried to all close their accounts to intentionally start a bank run and panic.

        This is the kind of foolish leftist thinking that harms everyone and accomplishes nothing.

        Well, the US government on Jan 1 2000 and 2001 feared the same and intentionally increased cash on hand…just in case. I would imagine France is doing the same.

      9. CLAIM: “The wall will also be paid for indirectly by the great new trade deal we have made with Mexico.”

        FACT: There is no evidence that the United States-Mexico-Canada Agreement deal would pay for the wall. None. At all.

        CLAIM: “Our southern border is a pipeline for vast quantities of illegal drugs including meth, heroin, cocaine and Fentanyl. Every week 300 citizens are killed by heroin alone, 90 percent of which floods across from our southern border.”

        FACT: Those drugs largely come through *legal* points of entry. And secondly, they are also transported through the underground tunnel system by the cartels. A border wall won’t fix that. Only a very small percentage enter by illegals walking across the border carrying illegal drugs.

        CLAIM: “My fellow Americans, tonight I’m speaking to you because there is a growing humanitarian and security crisis at our southern border. Every day, Customs & Border Protection agents encounter thousands upon thousands of illegal immigrants trying to enter our country.”

        FACT: Looking at the situation at the southern border by the flow of migrants alone, there is little justification to call it a “security crisis.” The numbers are clear: Total apprehensions by Customs & Border Protection have been trending *downward* the past two decades.

        ADDITIONAL FACT: According to Customs & Border Protection data, in 2001 there were 1,643,679 apprehensions at the border, compared with 396,579 in 2018– a decrease of more than 75 percent.

        • OK Mr. Democrat. Well hey let’s do nothing and let all the illegals flood in to the tune of 155 billion in lost money through government services in places like California and NYC. Both are in the news in the last 24 hours due to insane new benefits for illegal aliens.

          • htt ps://losangeles.cbslocal.com/2019/01/07/gavin-newsom-california-governor-2/
            htt ps://www.nbcnewyork.com/news/local/NYC-Health-Care-Guarantee-Mayor-de-Blasio-504046171.html

          • Mara, here’s an idea. Why don’t you get a blog instead of posting over a dozen comments on every thread, every day?

            Half of the threads are filled with your rants and preachings. Get an effn blog already. Do you have a life outside of shtf?

            With your endless preaching, why don’t you practice what you preach. And why don’t you have more taxes taken out of your checks to pay for the wall. Mexico isn’t paying for it indirectly or directly.

            I am not a Dem and never have been. But you are one of the sheeple.

            • Cause I am having fun.

              I get it. You can’t debate me, so you are reduced to ad hominem attacks. Pretty weak, bozo.

      10. My guess is that you are a never Trumper and are angry at the presidential election. And that you are an atheist.

        You know, this would be like a guy walking into a library and being offended and demanding for the librarians to take the books off the shelves since after reading them, he disagrees with them.

        How silly. Don’t read my posts. Simple.

        You need a safe space, I gather, just like the other SJWs. That way you will not be offended.

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