Krauthammer: Can we all remember that we have added $7 trillion to the debt in 5 years, please?

posted at 8:21 pm on April 15, 2014 by Erika Johnsen

I titled my earlier post about this morning’s Congressional Budget Office report on the costs of ObamaCare very deliberately; while lots of progressives out there are all too happy to celebrate the CBO’s latest revelation and spread the news that ObamaCare premiums aren’t going to be quite as pricey as they once thought they were, that’s really just a different way of saying that premiums aren’t going to be increasing by quite as much as they once thought they were (and I wouldn’t put any money on that actually panning out in the succeeding years). In that same vein, we often like to celebrate decreasing our deficit, which is to say that we’re still adding to our total debt as Democrats refuse to acknowledge our already metastasized entitlement spending as anything more than a merely theoretical, faraway problem. On this most joyous of April 15ths, Krauthammer reminds us, we’re just putting off the consequences of refusing to address entitlement reform for another day — but that bill will come due eventually.

Where Does All the Money Go?


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Keep voting democrat!

Murphy9 on April 15, 2014 at 8:31 PM

Don’t you hate when numbers are racist?

Gingotts on April 15, 2014 at 8:32 PM

Thanks. Now I have an excuse for the bourbon in my hand.

rbj on April 15, 2014 at 8:32 PM

You can’t make an omelet without breaking eggs./Obama.

OldEnglish on April 15, 2014 at 8:34 PM

That debt service portion of the feral budget is only at 6% because:

1) the feral government’s debt is concentrated at the shortest maturities in history – by miles, and

2) interest rates are being kept artificially low (insanely low) which gives the illusion of no real debt burden.

But, interest rates will eventually return to the mean (and then some) and the feral debt will have to be turned over into those high interest rates very quickly and very massively, since it’s all concentrated in the short-term (and much of the longer maturity debt is just owned by the Fed, anyway … Yay!!).

That 6% number is nothing but a sick illusion that will disappear sometime in the near future and become something quite a bit larger. Think of debt service costing 4 times what it is now and you’ll start to get an inkling of where things must go.

ThePrimordialOrderedPair on April 15, 2014 at 8:36 PM

Krauthammer: Can we all remember that we have added $7 trillion to the debt in 5 years, please?

(Waving frantically)

I remember Mr. Krauthammer…. I remember!!!!!

Now what? O_o

31giddyup on April 15, 2014 at 8:37 PM

It’s obvious that CK sure is racist, but not only that, he sure does want to hurt poor people. And women.

Mimzey on April 15, 2014 at 8:38 PM

Krauthammer: Can we all remember that we have added $7 trillion to the debt in 5 years, please?

The appropriate way to express this is:

8% deficit spending every year in order to crow about 2% in “growth”. LOL.

ThePrimordialOrderedPair on April 15, 2014 at 8:39 PM

Liberalism, where Ocare premiums going up less than expected is a fair trade off for a promise of them going down $2500 per year = Libtard.

hillsoftx on April 15, 2014 at 8:39 PM

How un-patriotic….

Electrongod on April 15, 2014 at 8:42 PM

Krauthammer: Can we all remember that we have added $7 trillion to the debt in 5 years, please?

Charles, you’re starting to sound like that Palin chick you so like to diss. Lighten up.

CTSherman on April 15, 2014 at 8:44 PM

Krauthammer must not remember himself. He has argued for replacing Obamacare with a Republican form of health-care that still doles out subsidies. I can only believe he would endorse higher taxes, as part of a solution to ameliorate the debt.

rickv404 on April 15, 2014 at 8:44 PM

… but that bill will come due eventually.

“As long as we don’t run out of ink for the Fed’s printing presses, what’s the problem?”
– Words of the statist Dem’s and RINOs

“Oh, and screw your and my children and grandchildren!”
– Actions of the statist Dem’s and RINOs

ShainS on April 15, 2014 at 8:48 PM

You can’t make an omelet without breaking eggs./Obama

“You can’t make a socialist revolution without breaking greedy, intolerant racists.”
–Obama.

There. Fixed it for you.

orangemtl on April 15, 2014 at 8:52 PM

That debt service portion of the feral budget is only at 6% because:

1) the feral government’s debt is concentrated at the shortest maturities in history – by miles, and

2) interest rates are being kept artificially low (insanely low) which gives the illusion of no real debt burden.

ThePrimordialOrderedPair on April 15, 2014 at 8:36 PM

Yup. There’s a big difference between 1%, 5% and 10% interest on $17,000,000,000,000 in debt.

Ruckus_Tom on April 15, 2014 at 8:58 PM

This is truly a national shame.

It’s very clear that Bush/Obama has produced a long-term fiscal health hazard of colossal proportions.

The biggest question that should be answered by each and every one of us: Why are we tolerating this?

oakland on April 15, 2014 at 9:01 PM

Wasn’t this movie call Obrewster’s Trillion?

Flange on April 15, 2014 at 9:01 PM

You can’t make an omelet without breaking eggs./Obama.

OldEnglish on April 15, 2014 at 8:34 PM

You can’t make Marxist squalor and oppression and debt without breaking a freemarket-based Constitutional republic.

rrpjr on April 15, 2014 at 9:04 PM

Why are we tolerating this?

oakland on April 15, 2014 at 9:01 PM

The Earth has only 10 years or so left according to you econuts, so what does debt matter?

Murphy9 on April 15, 2014 at 9:05 PM

But, interest rates will eventually return to the mean (and then some) and the feral debt will have to be turned over into those high interest rates very quickly and very massively

ThePrimordialOrderedPair on April 15, 2014 at 8:36 PM

Not so sure about that. The Fed may be able to keep the interest rates low indefinitely. Of course that means wages will remain low in order to keep inflation down. Not trying to be snarky but conservatives haven’t exactly been big proponents of wage increases, so that conservative argument contradicts itself.

We definitely do need a balanced budget amendment, no doubt about that. But I don’t think this debt situation is going to finish us off any time soon. The interest on the debt is only $50 billion more than it was 15 years ago. That’s not enough to destroy the Republic. Plus, the oil and gas discoveries have made a big impact on the national solvency, which will also put off a much anticipated ‘collapse’.

Even if we don’t get a BBA, a modest move to the right would greatly help the country, notwithstanding the claims by some that a weak move to the right is pointless. I don’t think those people making that argument really believe it. It may well be the conservative way to go, rather than a cold turkey attempt to eliminate a large part of the national debt quickly.

cimbri on April 15, 2014 at 9:05 PM

The bond market will determine the rate of payment on the debt. Once other countries refuse to buy US bonds/debt (and/or start selling off their held bonds) interest rates will skyrocket and the gummint will either have to burn up the printing presses to further ‘monetize’ the debt (Weimar Republic, anyone?) or tax businesses/working individuals into bankruptcy. One or the other (or both) WILL happen, unless DC grows a pair – which will not happen. The answer?……………

vnvet on April 15, 2014 at 9:09 PM

Charles, you’re starting to sound like that Palin chick you so like to diss. Lighten up.

CTSherman on April 15, 2014 at 8:44 PM

+1

bw222 on April 15, 2014 at 9:10 PM

Not so sure about that. The Fed may be able to keep the interest rates low indefinitely.

cimbri on April 15, 2014 at 9:05 PM

Nope. Not even close. And when the Fed loses control of interest rates it will be sudden and violent … sort of like Credit Crisis 1.0 but much, much, much worse. When we hit the eyewall of the credit crisis hurricane there will be nothing left to stop anything. No money. No credit. No printing ability. Nothing.

And it will come soon, as assuredly as it has every single time before in the past that central banks have tried to pull this sort of stupidity. The likely spark will be a small financial disaster overseas (something tiny like Singapore, say) and then the cascade will become a tsunami. Everyone is already overextended and there will be nothing available to stop, or even slow, it.

ThePrimordialOrderedPair on April 15, 2014 at 9:11 PM

Krauthammer must not remember himself. He has argued for replacing Obamacare with a Republican form of health-care that still doles out subsidies. I can only believe he would endorse higher taxes, as part of a solution to ameliorate the debt.

rickv404 on April 15, 2014 at 8:44 PM

Correct. Krathammer is a neocon, not a conservative. He’s a hawk on defense and moderate to liberal on other issues.

bw222 on April 15, 2014 at 9:13 PM

We are totally screwed. Cimbri,, who ever.

It will come faster than you can deny it.

Adjust this, modify that…

Our money is worthless, backed by lies.

Tell me,, what is a dollar? On what is it based?

It’s a promissary note of what?

Other currencies? At $17 trillion in debt?

We are fvcked.

wolly4321 on April 15, 2014 at 9:21 PM

We are fvcked.

wolly4321 on April 15, 2014 at 9:21 PM

You curse like a Roman.

Flange on April 15, 2014 at 9:24 PM

We definitely do need a balanced budget amendment, no doubt about that. But I don’t think this debt situation is going to finish us off any time soon. The interest on the debt is only $50 billion more than it was 15 years ago. That’s not enough to destroy the Republic. Plus, the oil and gas discoveries have made a big impact on the national solvency, which will also put off a much anticipated ‘collapse’.

cimbri on April 15, 2014 at 9:05 PM

Only $50 Billion a year extra? That’s all? That is assuming that interest rates stay at zero for the foreseeable future which they wont. As soon as other economies get back on track around the world, they wont need the relative safety of negative return US bonds and will quit buying them leaving the Fed as the only player in the US Treasury Bond game.

Right now the Fed is the single largest holder of US Debt in the World. They hold more debt than China and the Eurozone combined does. At this point it is all a game that will eventually have to end and it will end badly for the US Dollar. In the last 5 years alone the Fed has devalued the dollar by 30% just to keep buying Treasury notes.

And you call this sustainable?

Johnnyreb on April 15, 2014 at 9:25 PM

Why are we tolerating this?

oakland on April 15, 2014 at 9:01 PM

The Earth has only 10 years or so left according to you econuts, so what does debt matter?

Murphy9 on April 15, 2014 at 9:05 PM

BURN!

Lanceman on April 15, 2014 at 9:35 PM

Right now the Fed is the single largest holder of US Debt in the World. They hold more debt than China and the Eurozone combined does. At this point it is all a game that will eventually have to end and it will end badly for the US Dollar. In the last 5 years alone the Fed has devalued the dollar by 30% just to keep buying Treasury notes.

And you call this sustainable?

Johnnyreb on April 15, 2014 at 9:25 PM

I think it’s sustainable with some move to the right. More conservative spending policies, bring back more industries, etc. I prefer a strong dollar myself. I used to get 6% on money in a simple savings account in the 90s.

Primordial says it will be sudden and violent, and I guess most here think that, but more likely, you will simply see a slow but sure degradation of the dollar over a very long period of time. People are already switching from steak to hamburger and so on. That’s what we probably will have here, a steady drop in a standard of living across the board, rather than a catastrophic collapse.

But look at the bright side, if it all goes down and we become a barter society for a while, we all have plenty of consumer goods to last us at least a decade.

cimbri on April 15, 2014 at 9:37 PM

From the beginning the Obama Campaign has been about consolidating power at any cost for the progressive totalitarian cause. Greatly diminished national power without opposition is preferred to great national power with some kind of power sharing arrangement with the Enemy, as we have now.

forest on April 15, 2014 at 9:46 PM

You curse like a Roman.

Flange on April 15, 2014 at 9:24 PM

VHAT DO IUV MEAN?

ebrawer on April 15, 2014 at 9:51 PM

But remember when The Fascist One said Bush adding 5 trillion to the debt was unpatriotic?

jeffinsjvca on April 15, 2014 at 10:10 PM

The interest on the debt is only $50 billion more than it was 15 years ago.

cimbri on April 15, 2014 at 9:05 PM

15 years ago the interest rate on the debt was three times as high as it is now. So basically, in saying this, you’re confirming that the interest burden has tripled in the last 15 years, and that the only thing keeping that from being felt is artificially suppressed interest rates.

The Schaef on April 15, 2014 at 10:15 PM

VHAT DO IUV MEAN?

ebrawer on April 15, 2014 at 9:51 PM

I’m sorry, I don’t speak Latin.

Flange on April 15, 2014 at 10:18 PM

…math is hard!

KOOLAID2 on April 15, 2014 at 10:21 PM

Keep voting democrat!

Murphy9 on April 15, 2014 at 8:31 PM

I know you’re coming from a good place in suggesting that, but most of this additional debt burden has happened with a Republican controlled house of representatives for most of the years Obama has been in office. We really need to learn the lessons of the recent past. Things have changed.

Men like Paul Ryan are as dangerous as anyone in congress, flame me if you will. I am afraid to see what a return to a complete Republican control of DC would look like. Bush ruined the GOP brand for years.

FrankT on April 15, 2014 at 10:52 PM

The interest on the debt is only $50 billion more than it was 15 years ago. That’s not enough to destroy the Republic.

cimbri on April 15, 2014 at 9:05 PM

You know they have to pay back the principal too, right?

Chuck Schick on April 15, 2014 at 10:55 PM

The media is starting to push the lies again. I guess they got over the shock of having their healthcare cancelled.

It so sickening to see the same old tricks work time and time again.

What will it take for America to wake up?

petunia on April 15, 2014 at 11:37 PM

There are only a few facts like this that should never be forgotten, and which seem to have been forgotten or ignored by the majority of the media. One is the 10 years of warfare against the U.S. between the first and second attacks on the WTC insistently ignored by Washington. Another is the ease with which the left has forgotten the fight against terrorism. Yet another is the size of the national debt and the spending by this administration. These are certainly enough to make me despair for this country. The determined ignorance by the left and apparent acquiescence by the populace haven’t improved that one bit.

flataffect on April 15, 2014 at 11:57 PM

Mmmm mmmm mmmmm, Barack Hussein Obama.

Just landed in Barry’s “adopted home town” – that I’ll wager he’ll never live in again. Sweet Home Cesspool. It’s 32 degrees here.

aquaviva on April 16, 2014 at 12:35 AM

Mmmm mmmm mmmmm, Barack Hussein Obama.

Just landed in Barry’s “adopted home town” – that I’ll wager he’ll never live in again. Sweet Home Cesspool. It’s 32 degrees here.

aquaviva on April 16, 2014 at 12:35 AM

Going down to 31 in Atlanta tonight; thank you fat Al.

slickwillie2001 on April 16, 2014 at 1:27 AM

What did we get for that extra $7 trillion debt?
I sure didn’t get anything.

albill on April 16, 2014 at 7:28 AM

The young who voted for Obama need to be reminded of this debt that they, and not their parents, will have to pay off.

Once interest rates rise, the only way out of this is to print money and tax everyone, but especially savers, through the resulting inflation.

There’s a reason I have moved a chunk of my money to overseas investments.

Over50 on April 16, 2014 at 8:22 AM

FACT: Democrat majorities from FY 1998 to present have been adding new public debt at OVER NINE TIMES the rate of their Republican majority predecessors.

Take a look at the numbers released by the Treasury Department:
http://www.treasurydirect.gov/NP/debt/search?startMonth=09&startDay=30&startYear=1997&endMonth=03&endDay=31&endYear=2014

Date Debt Held by the Public
09/30/1997 $3,789,667,546,849.60
09/28/2007 $5,049,305,502,926.48
03/31/2014 $12,619,319,113,193.99

Republicans held majority control (2+ out of 3) of the 3 budget-making and appropriations bodies (the House, the Senate, and the Presidency) when the budgets were passed for FY 1998-2007.

In those 10 fiscal years (09/30/1997 – 09/30/2007), the Debt Held by the Public increased a total of $1,259,637,956,076.88 ($5,049,305,502,926.48 – $3,789,667,546,849.60), an average of $125,963,795,607.69 ($126 Billion) a year for ten years.

Then the Democrats (including then-Senators Barack Obama, Joe Biden, Hillary Clinton, John Kerry, etc. and then-Speaker of the House Nancy Pelosi) took majority control of both houses on 1/3/2007.

Democrats have held majority control (2+ out of 3) of the 3 budget-making and appropriations bodies since January 3, 2007, and have been majority responsible for the spending passed for FY 2008-2014.

In six and a half fiscal years (09/30/2007 – 03/31/2014), the Debt Held by the Public increased a total of $7,570,013,610,267.51 ($12,619,319,113,193.99 – $5,049,305,502,926.48), an average of $1,164,617,478,502.69 ($1,164 Billion or $1.164 TRILLION) a year for the last six and a half years.

Got that?

Republican majorities added to the public debt at a rate of $126 Billion a year for ten years, FY 1998-2007.

Democrat majorities added to the public debt at a rate of $1,164 Billion ($1.164 TRILLION) a year for the last 6.5 years, FY 2008 – the first half of FY 2014.

Democrat majorities added to the public debt at a rate that is 9.25 TIMES the rate of their Republican majority predecessors.

ITguy on April 16, 2014 at 9:30 AM

The interest on the debt is only $50 billion more than it was 15 years ago. That’s not enough to destroy the Republic.

cimbri on April 15, 2014 at 9:05 PM

You know they have to pay back the principal too, right?

Chuck Schick on April 15, 2014 at 10:55 PM

The paying back the principal part is extremely important. As others have pointed out on this thread, the Federal govt right now is committing one of the cardinal sins of debt financing: the mismatch of loan duration compared to the duration of the obligation itself. In other words, you don’t pay for your house with a credit card, and you don’t pay for dinner with a 30-year loan. The federal debt is a long-term issue, and we’re paying for it on a credit card in large part.

We can get away with it right now because interest rates are so ridiculously low, artifically so, but when/if the rates move, short term rates are always the most volatile. All of the short term stuff comes due and has to be refinanced immediately.

A couple of other thoughts: a great deal of the “Yeah, we’re reducing the deficit. Hail Obama the Solvent!” comes on the wave of a bull market that is almost entirely driven by the flight of money from the bond markets into the equity markets. The government has been hauling in capital gains taxes, but when/if the stock market has its inevitable correction, all of that deficit reduction is going to go up in smoke as not only will the capital gains go away, but investors will take advantage of the moment to unload bad positions to improve their tax positions and hello capital losses!

Additionally, with all this debt, what will we do when we have the next big thing? The next 9/11? The next Katrina? Truly, the worst thing about our current debt is not just the ocean of red ink itself. It’s that we have nothing to show for it. We didn’t just defeat Nazi Germany & Imperial Japan. We haven’t put a man on Mars. Instead we’ve had two almost pointless occupations (pointless because of our mindless PC-driven foreign policy), a resurgent Al Qaeda, a burgeoning China, a restless Russia, and a determined Iran. Back on the home front, we have a stalled economy, a persistent un-/underemployment, and an apathetic populace.

dreadnought62 on April 16, 2014 at 9:44 AM

What difference does it make?

right2bright on April 16, 2014 at 10:29 AM

CORRECTION: The Fed bought $5T of this debt back. This is after creating it out of thin air and lending it to the Federal Government. So riddle me this: How much do we really owe? $17T or $22T? The Fed is now our primary debt holder, NOT China.

newpine on April 16, 2014 at 11:06 AM

You can’t make an omelet without breaking eggs./Obama.

OldEnglish on April 15, 2014 at 8:34 PM

But you can break eggs without making an omelet.

PersonFromPorlock on April 16, 2014 at 4:06 PM