Jerome Powell finally admits the obvious, “The U.S. is on an unsustainable fiscal path, the U.S. federal government is on an unsustainable fiscal path. That means that the debt is growing faster than the economy.”
NBC: Another economic hangover after the pandemic is a sharp increase in the national debt 30 years from now. It is projected to be $144 trillion or $1 million per household. How do you assess the national debt?
POWELL: We mostly try very hard not to comment on fiscal policy and, you know, instruct Congress on how to do their job when actually they have oversight over us.
NBC: But is the national debt a danger to the economy in your view?
POWELL: In the long run, the US is on an unsustainable fiscal path. The US government is on an unsustainable fiscal path. And that just means that the debt is growing faster than the economy.
NBC: “I have the sense this worries you very much over the long run?”
POWELL: Over the long run, of course, it does, you know, we’re effectively – we’re borrowing from future generations. It’s time for us to get back to putting a priority on fiscal sustainability and sooner is better than later.
The @federalreserve’s Jerome Powell: “The U.S. is on an unsustainable fiscal path, the U.S. federal government is on an unsustainable fiscal path. That just means that the debt is growing faster than the economy.” pic.twitter.com/Xds8CPRxDK
— Tom Elliott (@tomselliott) February 5, 2024
He only got one phrase wrong by saying “in the long run.” He should have said, “In the short run.” Nations are aligning against us – joining BRICS – and against the US petrol dollar. They are tired of the US weaponizing it, they don’t like WOKE, and they know we’re collapsing from within.
Our debt will be $50 trillion soon, which is unsustainable, as is the $34 trillion that we have now. Both parties seem addicted to spending, with only some Republicans balking when it was once the entire party. We’re still printing funny money (quantitative easing is a way of life), chasing wars, and alienating the world. We invited the impoverished and criminal world in, further draining our financial resources, as we kill off our best resource – energy.
When he says “long run,” he’s merely kicking the can down the road so he doesn’t have to face it. He knows it is here now.
There is also the obvious theft of the wealth of future generations. We’re saddling them with debt and poverty.