Recent trend, if held, would ruin us

Post #572

A six-quarter trend is not a very long time and if you made a regression out of it, then you’d have to be cautious about what you imply. That being said, if the trend of the last 6 quarters persists, we’re toast:

By the end of 2029, all tax revenue (100% of it) becomes chewed up by interest payments on the debt. Instead of interest payments reaching 100% of tax revenues 6 years from now — as the current trend predicts — it is more likely that things don’t continue to worsen at the same rate as the past 6 quarters.

Even still, the USA is flirting with financial ruin, but there is a way out of it. The tough part is to find the political will to do the right thing and prevent the ruin of our republic. Dark times lie ahead if we don’t.

Reference

U.S. Bureau of Economic Analysis, Federal government current expenditures: Interest payments [A091RC1Q027SBEA], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/A091RC1Q027SBEA

U.S. Bureau of Economic Analysis, Federal government current tax receipts [W006RC1Q027SBEA], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/W006RC1Q027SBEA