Profit Confidential’s Michael Lombardi warns readers that the U.S.’ growing national debt stands to reach $34.0 trillion in four years.
New York, United States – December 17, 2013 /MarketersMedia/ —
Profit Confidential (www.ProfitConfidential.com), an e-letter published by Lombardi Publishing Corporation, a 27-year-old consumer publisher that has served over one million customers in 141 countries, warns that the U.S. national debt, which is growing each month by $113 million and currently sits at $17.2 trillion, will double to $34.0 trillion in the coming years.
“In November, the U.S. government registered a budget deficit of $135 billion. Over the course of the month, it spent $318 billion and took in just $182 billion,” says lead contributor and financial expert Michael Lombardi. “For fiscal 2014, which began on October 1 of this year, the U.S. government has registered a budget deficit of $227 billion; that’s an average of $113.5 billion a month.” (Source: Schroeder, R., “U.S. budget gap falls for second straight month,” MarketWatch, December 11, 2013; http://www.marketwatch.com/story/us-budget-gap-falls-for-second-straight-month-2013-12-11.)
Lombardi observes that whenever the U.S. government registers a budget deficit, it has to go out to the market and borrow money to pay for its expenses and obligations. This increases the country’s national debt, which has skyrocketed over the past few years due to consecutive years of extremely large budget deficits.
Lombardi says that the national debt will double to $34.0 trillion in the years ahead for any number of reasons. According to the Congressional Budget Office’s projection, between 2014 and 2018, the total U.S. budget deficit will add up to about $2.4 trillion. By the government’s own estimates, the national debt will hit about $20.0 trillion in four years. (Source: “Updated Budget Projections: Fiscal Years 2013 to 2023,” U.S. Congressional Budget Office web site, May 6, 2013; http://www.cbo.gov/sites/default/files/cbofiles/attachments/44172-Baseline2.pdf.)
“These government forecasts are far too conservative. Budget deficits recorded by the U.S. government in the years ahead will be much higher than estimated. Interest rates could double three to four years out, and that could easily tack on another $400 billion in interest costs for the government,” Lombardi adds. “We still don’t know the true costs of Obamacare. Cities are crying out for federal government aid or bailouts. In addition, the population is aging, and social security is stretched.”
The U.S. budget deficit could face devastating headwinds, should the country’s creditors ask for their money back. China, which has already financed a significant amount of the country’s national debt, says it will not buy anymore U.S. bonds, saying it doesn’t want to increase its foreign reserves. (Source: Weil, D., “China May Cut Back on Purchases of US Treasurys [sic],” MoneyNews.com, November 22, 2013; www.moneynews.com/Economy/China-dollar-US-Treasurys/2013/11/22/id/538088.)
“Are China and other countries cooling on U.S. investments; knowing the U.S. government cannot continue to go on like this? That is, continue to spend, borrow the difference, and print more?” Lombardi asks. “Economically, the U.S. is on an unsustainable path. As a result, we are looking at a national debt that could double in less than 20 years, especially in light of the accelerated paper money printing used to finance that debt and rapidly rising inflation. Look at precious metals; they are very, very cheap today, and they will be a great hedge for the inflation headed our way.”
Founded in 1986, Lombardi Publishing Corporation, which has served over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more information on Lombardi Publishing Corporation and Profit Confidential, visit www.lombardipublishing.com.
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