Percentage of the population employed
You’d think with a higher percentage of the population employed than 41 out of the last 50 years, personal income, home prices, investments, Federal Revenue per taxpayer and per capita all outpacing reported inflation quality of life would be at new highs with the U.S. government running budget surpluses unfortunately we all know this isn’t the case.
Since the U.S abandoned the gold standard annual Federal spending has averaged 130.75% of annual Federal revenue, in 2020 and 2021 219.23%.
|Period||Total Federal Spending as a Percentage of Total Federal Revenue|
Annual Federal spending per taxpayer is equivalent of 85% of annual personal income.
|Period||Average Annual Federal Spending as a Percent of Average Annual Personal Income|
U.S. Federal debt has increased by
Per capita and per employed person Federal debt is at all time high and climbing faster than any other period in history.
U.S. Debt to GDP is higher now higher than World War 2
Annual Federal revenue in 1971 was 45.85% of total Federal debt, in 2021 annual Federal revenue is 11.16% of total Federal debt.
From 1971 through 2007 the average U.S. Treasury rate was 8.70%, 3.99% above reported inflation. From 2008 – 2020 2.67%, 0.94% above reported inflation.
Increases in all Federal government expenditures are are governed by reported inflation.
- Federal debt service cost
- Social Security
- Government employee and military pensions
- Government contracts
Containing reported inflation has saved the Federal government literately trillions of dollars in debt service cost alone. If Treasury rates returned to the 1970 through 2007 average of 8.70% it would consume 68.99% of total annual Federal revenue.
1990 total Federal debt 3.206 trillion, debt service cost 298 billion
2020 total federal debt 26.880 trillion, debt service cost 538 billion
Flight to quality is now a thing of the past, it’s nothing more than a footnote in history, inflation and real rates of return disappeared with fiscal responsibility.
Two dent downgrades
inability to fiance
Unable to sell debt on the open market
creation of money
Drop in the epic m1 chart
From 1971 through 2007 annual Federal spending averaged 21.91% more than annual revenue.
From 2008 through 2021 54.12% more
2020 and 2021 119.23% more.
From 1971 through 2020 Federal debt grew by 26.50 trillion dollars while reported budget deficits total only 17.85 trillion.
With new policies trade deficits have started to escalate, so have purchases of U.S. treasuries by foreign investors
Foreign buying for US Treasureis
Monetization has fully engaged
GDP per capita versus inflation
Inability to pay a competitive rate
Growth in income has outpaced inflation
Federal Revenue per capita
Federal spending per capita
To show you how fictitious BLS.Gov
World War 2
Federal Government’s inability to borrow on the open market
Fed’s creation of money
Per taxpayer debt escalated from to , per capita debt
Rest of the world’s debt per capita
resulting in two debt down grades in 2013 the latest in 2013, currently U.S. Federal Debt shares the same credit rating as Finland and Hong Kong.
Can you justify this? The Federal Government spent $53,647 on every employed person in the U.S equivalent to 89.95% of average personal income.
In 2021 it’s running at 84.71% of personal income (this is without the 4 Trillion in additional “stimulus” or $27,480 on every employed person.
Assets and income priced in gold
Top 20 stocks over the last 20 years
Have to watch monetization
Massive stock sales prior to the hike in long-term capital gains
Long-term bond holders are going to hemorrhage
Massive foreign liquidation
Higher corporate taxation, more regulation and a hike in minimum wage will will make U.S. corporations relocate offshore, Federal corporate tax revenue will decline.
High net worth individuals will move assets and income offshore further reducing Federal tax revenue
Trade deficits will escalates
The Federal Government will be unable to borrow enough money to sustain it’s budget and unable to satisfy unfunded liabilities
Trillions more money will b e created
On deck an inflationary depression
You can let these fundamentals work you or you can work them
Being on the right side of economic change.