You have surely never believed the Biden administration’s assurances that the economy is strong and federal finances are all headed in the right direction. Like everything else these days, this has always felt like gaslighting.
The GDP and labor numbers keep being revised downward and inflation is still on the march. The agencies have outright lied about the data they are reporting. The higher interest rates were surely going to create a serious problem for federal finances, not that anyone in a position to fix the problem cares about the future.
That much we knew. But the extent of the problem comes as a bit of a shock. The budget group Committee for a Responsible Federal Budget has run the numbers and offered a forecast for next year. It sees the budget deficit doubling from $1 to $2 trillion by next year. We’ve never seen anything like this in times in which everyone says that things are back to normal.
They are far from normal. There is a real crisis brewing. It happens even as the Biden administration is bragging about bringing down the deficit. That turns out to be entirely temporary, as one might expect. The truth is far more grim.
In the data we have already, payments on the federal debt are already at $1 trillion as a result of the Fed’s increase of rates to combat inflation. Again, we’ve never seen anything like this. Honestly, it feels like the end times. I personally recall the panic in the 1980s about the deficit. Those times are not even close to comparable to what we face today.
How the heck did this third-world-style disaster take place?
Let’s review the last four years and how we got here. There was a virus and the United States copied the Chinese Communist Party’s (CCP) plan for virus control. All public-health elites got on board with what are called Non-Pharmaceutical Interventions, which can be hand washing but can also be massive and brutal shutdowns. For some reason, a mania overtook the learned class and they cracked down on any and all human activity, including shutting down playgrounds and schools.
