The interest alone on America's debt is nearing $1 trillion — 'We're running out of options'
The stock markets may have had a good month in November — but that doesn’t mean it’s going to last.
After the United States has racked up $20 trillion in federal debt since 2008, Glenn Beck believes the next debt scare could be the real thing.
Glenn refers to an article titled “The Federal Reserve Broke the Budget. Buckle Up for What Comes Next” by Jed Graham of Investors.com, which details the undeniable reasons for the incoming crash.
“Exhibit A,” Glenn reads, “in the case of the broken federal budget is the deficit's surge in fiscal 2023, which ended Sept. 30. Unemployment was near a record low and GDP growth was strong.”
All that sounds great, but under those conditions, the budget deficit would be more likely to shrink. In this case, it doubled to $2 trillion.
“After the Fed sent more than $100 billion in interest on its bond portfolio to the Treasury in fiscal 2022,” Glenn continues, “it had to halt those payments last year as bond prices fell.”
“Having let inflation get out of the bag, an 8.7% cost-of-living adjustment stoked a $134 billion increase in Social Security checks.”
About $100 billion then went to FDIC bailouts to banks like Silicon Valley Bank.
“To top it off, the Fed hiking its key rate past 5% forced Uncle Sam to pony up an extra $177 billion in interest on the debt,” which Graham believes is a problem that will continue growing by “leaps and bounds.”
Glenn sees an end in sight.
“We’re going to have a surge. Enjoy it while it lasts,” he says.
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White House press secretary Jean-Pierre said the Biden administration is not monitoring the stock market amid Wall Street's longest losing streak in 99 years
White House press secretary Karine Jean-Pierre confirmed that the Biden administration is not monitoring the stock market on a regular basis as the Dow Jones Industrial Average suffered its longest losing streak in 99 years.
While speaking to reporters, Jean-Pierre said that “nothing has changed on how we see the stock market,” which is “not something we keep an eye on every day, so I’m not gonna comment on that from here,” the Epoch Times reported.
The Nasdaq Composite dropped nearly 5%, while the Dow Jones shrank by 4% last Wednesday. On Thursday, the Dow Jones dropped more than 440 points during the morning trading hours.
Earlier in 2022, former White House press secretary Jen Psaki said that President Joe Biden “does not look at the stock market as a means by which to judge the economy.”
The stock market’s historic plunge was triggered, in part, by selloffs of major corporate retailers like Target and Walmart. Target lost nearly 25% of its value after it reported earnings fell short of forecasts made by analysts largely due to shipping costs that high fuel prices and inflation have exacerbated. Other major retailers also saw significant losses in recent days.
Rising interest rates, spiraling inflation, the ongoing Russian invasion of Ukraine, and a slowdown in China’s economy have reportedly caused investors to reconsider the prices they’re willing to pay for a wide range of stocks.
The rampant selloffs lasted for eight consecutive days marking the longest weekly losing streak on Wallstreet since 1923, CNN reported.
The S&P 500 — a much broader index than the Dow Jones — posted its seventh-straight weekly loss marking the index’s longest slump since March 2001. The S&P 500 briefly entered a bear market on Friday after recording a 20% loss from the all-time high that it reached this past January.
The last bear market occurred two years ago during the COVID-19 pandemic, but the recent market conditions will mark the first time since then that new investors could experience true economic shrinkage.
LPL Financial’s Ryan Detrick said, “From inflation to a hawkish Fed, to war, to supply chain issues, to China on lockdown, to a slowing economy, there are many reasons stocks have done as poorly as they have recently.”
Detrick suggested that a “bounce back” is likely, however.
He said, “If we get any good news, a big bounce-back rally is likely.”
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