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Welcome to the official home and wonderful world of Pulitzer Prize Winning Political Cartoonist Michael P. Ramirez, daily editorial cartoonist for the Las Vegas Review Journal |
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A category $22.4 trillion storm
The Real Cost of Government Debt: How Will It Affect Your Retirement?
By Trevor Gerszt Friday, 06 September 2019 NEWSMAX It’s no secret that the United States government is in terrible financial shape. The national debt stands right now at $22.5 trillion, and most forecasts for future debt growth expect federal deficits to continue adding about $1 trillion per year to that total. But there’s a pretty ominous tipping point that’s coming up really soon that could cause that debt to spiral even further out of control. One of the reasons the federal government has been able to take on so much debt in recent years is because of the extremely low interest rate environment brought about by the Federal Reserve’s quantitative easing in the aftermath of the financial crisis. With short-term rates near zero, and long-term rates at historically low levels, the federal government took advantage of those low rates to engage in huge amounts of stimulus spending. That’s why the government spent as much on interest on the national debt in 2012, when the debt was at about $16 trillion, as it did in 1998, when the debt was around $5.5 trillion. But what goes down must come up, and interest rates will rise in the future. In fact, the rise just over the past couple of years has resulted in the government paying record amounts of interest just to service the national debt. In Fiscal Year 2018 the government paid a record $523 billion in interest, and that sum will be eclipsed in FY 2019. read more The U.S. National Debt is Rising -- But it Won't Affect Social Security
Social Security has three sources of revenue, and two of them aren't going anywhere. Motley Fool Staff. Sep 10, 2019 at 2:04PM. MOTLEY FOOL Millions of people rely on Social Security for either full support or supplemental retirement income. In fact, over 22 million people in the U.S. are lifted out of poverty thanks to that government program. But over the past few years, there have been thousands of headlines explaining that Social Security will begin paying out more than it brings in and that the U.S. national debt is rising. Are the two things connected? Kind of. They are tied together, but the connection isn't as clear as you might think. In this video from our YouTube channel, we break down how the national debt affects Social Security, and why you don't need to worry about your monthly payments any time soon. read more |
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