Total Government and Personal Debt in The U.S. Has Hit 41 Trillion Dollars ($329,961.34 per Household)

Total Government and Personal Debt in The U.S. Has Hit 41 Trillion Dollars ($329,961.34 Per Household)

We are living in the greatest debt bubble in the history of the world.  In 1980, total government and personal debt in the United States was just over the 3 trillion dollar mark, but today it has surpassed 41 trillion dollars.  That means that it has increased by almost 14 times since Ronald Reagan was first elected president.  I am searching for words to describe how completely and utterly insane this is, but I am coming up empty.  We are slowly but surely committing national suicide, and yet most Americans don’t even understand what is happening.

According to 720 Global, total government debt plus total personal debt in the United States was just over 3 trillion dollars in 1980.  That broke down to $38,552 per household, and that figure represented 79 percent of median household income at the time.

Today, total government debt plus total personal debt in the United States has blown past the 41 trillion dollar mark.  When you break that down, it comes to $329,961.34 per household, and that figure represents 584 percent of median household income.

If anyone can make a good argument that we are not in very serious debt trouble, I would love to hear it.

And remember, the figures above don’t even include corporate debt.  They only include government debt on the federal, state and local levels, and all forms of personal debt.

So do you have $329,961.34 ready to pay your share of the debt that we have accumulated?

Nobody that I know could write that kind of a check.  The truth is that as a nation we are flat broke.  The only way that the game can keep going is for all of us to borrow increasingly larger sums of money, but of course that is not sustainable by any definition.

Eventually we are going to slam into a wall and the game will be over.

One of my pet peeves is the national debt.  Our politicians spend money in some of the most ridiculous ways imaginable, and yet no matter how much we complain about it nothing ever seems to change.

For example, the U.S. military actually spends 42 million dollars a year on Viagra.

Yes, you read that correctly.

42 million of your tax dollars are being spent on Viagra every year.

And overall spending on “erectile dysfunction medicines” each year comes to a grand total of 84 million dollars…

According to data from the Defense Health Agency, DoD actually spent $41.6 million on Viagra — and $84.24 million total on erectile dysfunction prescriptions — last year.

And since 2011, the tab for drugs like Viagra, Cialis and Levitra totals $294 million — the equivalent of nearly four U.S. Air Force F-35 Joint Strike Fighters.

Is this really where our spending on “national defense” should be going?  We are nearly 20 trillion dollars in debt, and yet we continue to spend money like there is no tomorrow.  For much more on the exploding size of our national debt and the very serious implications that this has for our future, please see my previous article entitled “Would You Like To Steal 128 Million Dollars?”

I didn’t think that our debt bubble could ever possibly get this big, but I didn’t think that our stock market bubble could ever possibly get quite get this large either.  For a few moments, I would like for you to consider a list of facts about this stock market bubble that was recently published by Zero Hedge…

  • The S&P 500 Cyclically Adjusted Price to Earnings (CAPE) valuation has only been greater on one occasion, the late 1990s. It is currently on par with levels preceding the Great Depression.
  • CAPE valuation, when adjusted for the prevailing economic growth trend, is more overvalued than during the late 1920’s and the late 1990’s. (LINK)
  • S&P 500 Price to Sales Ratio is at an all-time high
  • Total domestic corporate profits (w/o IVA/CCAdj) have grown at an annualized rate of .097% over the last five years. Prior to this period and since 2000, five year annualized profit growth was 7.95%. (note- period included two recessions) (LINK)
  • Over the last ten years, S&P 500 corporations have returned more money to shareholders via share buybacks and dividends than they have earned.
  • The top 200 S&P 500 companies have pension shortfalls totaling $382 billion and corporations like GE spent more on share buybacks ($45b) than the size of their entire pension shortfall ($31b) which ranks as the largest in the S&P 500. (LINK)
  • Using data back to 1987, the yield to maturity on high-yield (non-investment grade) debt is in the 3rd percentile. Per Prudential as cited in the Wall Street Journal, yields on high-yield debt, adjusted for defaults, are now lower than those of investment grade bonds. Currently, the yield on the Barclays High Yield Index is below the expected default rate.
  • Implied equity and U.S. Treasury volatility has been trading at the lowest levels in over 30 years, highlighting historic investor complacency. (LINK)

Our financial markets are far more primed for a crash than they were in 2008.

The only times in our entire history that are even comparable are the late 1920s just before the infamous crash of 1929 and the late 1990s just before the dotcom bubble burst.

A whole lot of people out there seem to be entirely convinced that things will somehow be different this time.  They seem to believe that the laws of economics no longer apply and that we will never pay a significant price for decades of exceedingly foolish decisions.

Overall, the world is now 217 trillion dollars in debt.  Earlier this year, Bill Gross raised eyebrows when he said that “our highly levered financial system is like a truckload of nitro glycerin on a bumpy road”, and I very much agree with him.

There is no way that this is going to end well.  Yes, central bank manipulation may be enough to keep the party going for a little while longer, but eventually the whole thing is going to come crashing down in a disaster of unprecedented magnitude.

H/T: Michael Snyder

A Mystery Investor Has Made a 262 Million Dollar Bet That The Stock Market Will Crash by October

If you haven’t checked out and liked our Facebook page, please go here and do so.

Start the Discussion:

  • Hell And A Hand Basket

    I can still remember when:
    – The family’s Father who worked blue-collar jobs (manufacturing, construction, teaching, etc) – was able to provide for his family of four – purchase a modest/adequate home in a good neighborhood filled with other blue-collar families, buy a reliable vehicle, save for college, put groceries in the fridge, take an annual local vacation, enjoy a baseball game, have cook-outs with friends, add to a savings account, pay all his monthly utility bills, dress his children, etc.

    Most of all, the Mother didn’t work outside the home (or if she chose to work, worked/volunteered part-time while the kids were in school, or actually worked at the school), she spent time within the community, was present in her local church, knew all of her neighbors and conversed with them regularly, was proud to be a stay-at-home Mom whose mission was to raise her family and take care of her Husband – and she LOVED to do it, was PROUD to do it, found self WORTH in doing it, did not feel guilty, sad, enslaved, or that her life was passing her by.

    The Father’s employer valued his loyalty, he would work there for the next 30-years until retirement, was provided adequate health-insurance, held a retirement benefit, considered his employer as an allied force and stronghold for his family’s future.

    At the age of 58, this memory was only a short 45-50 years ago, my family lived a conservative, but comfortable life – free from financial stress, as a solid cohesive unit – not a unit fighting for everything, but a unit LIVING and ENJOYING the conservative life we led. We were NOT wealthy by any means, but we were safe, secure in our family and its strength, and most of all HAPPY!

    Now we will remember:
    – The family struggles financially even with BOTH parents working, both parents are away from their children 12-hours a day, families rarely sit around the dinner-table chatting about their day, Mothers and Fathers together are seen as an abnormality – single parents are the normality, financial struggles are the norm, college for the kids requires a 2nd mortgage or a large loan, health insurance premiums steal from the family vacation, baseball games require 3-months of savings (for the nose-bleed section seats), the family car (now 2-cars are a necessity) is another large monthly payment (again stealing from the family vacation or baseball game), dressing the children is wrought with fashion “musts” and children at a young age are conscious of “labels and designers”, and most parents can’t tell their children NO.

    Mom is no where to be seen in the community, you can live in a neighborhood and not ever know a single other person living there, the schools are ramming propaganda and twisted views into little brains, reading writing arithmetic are considered secondary to leftist-teachings, everyone is emotional and afraid, law breakers and thieves are at every corner, locking-up everything and not trusting anyone is a way of life, Pediatricians recommend drugging our children to keep them still and quiet (while the brainwashing propaganda takes hold), Dad’s employer might not be there tomorrow, and everyone is MISERABLE.

    Our children arguing often, fighting in schools happens daily (specifically if there is a high percentage of black/brown students), teen pregnancy/abortion are a regularity, drug use is constant, and everyone is MISERABLE.

    We can thank the Leftist/Feminist for actively working to bring families where we find ourselves today, for this Cult INSISTED Mothers remove themselves from the home, INSISTED there was no need for “family”, and INSISTED we looked away from God. This Cult are the soldiers of the Globalist, and these soldiers have done their job, effectively bringing our families into subjugation, ripe for Globalism.

    #MAGA is more than a slogan, it’s a way of life I hope will return for my Grandchildren.