Bidenomics: The worst is yet to come

The Treasury Department’s recent revelation of a staggering $1.7 trillion deficit for fiscal year 2023 might have slipped under the radar amidst the cacophony of global turmoil and heart-rending loss. Still, make no mistake – this financial bomb dropped by the Treasury is more than just a piece of statistical data. It’s a testament to the burgeoning crisis that the Biden administration seems to be nonchalantly feeding into. The deficit’s 23 percent year-over-year growth is a cause for concern, particularly when coupled with the $879 billion allocated solely to service the federal debt. Welcome to the era of what pundits are calling “Bidenomics,” where multi-trillion-dollar deficits are the new norm.

At the crux of this financial conundrum lies the swelling federal government spending, which hit a colossal $6.1 trillion mark last year. This excessive expenditure, coupled with lackluster government receipts of $4.4 trillion, is a clear sign of a ship veering off course. These figures fell woefully short of the previously forecasted $5 trillion, a shortfall attributed to a sputtering economy and the counterproductive tax hikes imposed by the administration. If President Biden had simply allowed spending to revert to pre-pandemic levels, the budget could have been balanced. Instead, Treasury outlays have surged by an alarming 38 percent compared to the pre-pandemic era.

The Treasury’s recent announcement about the deficit being $1 trillion lower than when Biden assumed office seems like a clever ruse, obscuring the true gravity of the situation. What were meant to be emergency measures during the pandemic have metamorphosed into a bedrock for the Biden administration’s ambitious agenda. The $1.7 trillion deficit for the last fiscal year might as well be labeled a $2 trillion deficit, given that the Treasury has conveniently reallocated $300 billion to cater to the administration’s pet project of student loan bailouts.

This creative accounting maneuvering simply shifts the burden from one ledger to another, without truly addressing the underlying issue. A closer examination reveals a federal debt that has ballooned to a staggering $33.5 trillion, inching closer to the edge of a precipice. The Treasury’s borrowing spree shows no signs of abating, with a jaw-dropping $500 billion borrowed in just the first three weeks of the current fiscal year.

As the federal debt mounts and interest rates climb, the cost of servicing this debt has skyrocketed, surpassing vital areas such as the Social Security Administration and the Department of Health and Human Services. Interest payments have even eclipsed the entire military expenditure in the Department of Defense’s bloated budget. Despite this alarming trajectory, the Biden administration remains unyielding, staunchly advocating for more government spending and perpetually colossal deficits.

Yet, financial markets are slowly awakening to the grim reality that the Treasury might soon struggle to honor its debts. Consequently, investors are demanding higher yields, further exacerbating the cost of servicing the debt. This ominous cloud is compounded by the Treasury’s policy of not paying off maturing debt but simply rolling it over along with the accumulated interest. Trillions of dollars in existing debt at low interest rates are set to be replaced with new debt at rates two to three times as high within the coming year.

This toxic brew of unchecked spending, mounting debt, and escalating interest rates is spiraling the nation into a harrowing debt death spiral. It’s estimated that the Treasury, and consequently the taxpayer, will be burdened with over $1 trillion in interest payments during the current fiscal year, a sum that won’t dent the debt by even a penny.

Despite this dire fiscal landscape, the Treasury seems to have adopted a tone of deluded optimism, heralding the alarming annual report as evidence that “Bidenomics” is rejuvenating the economy from the grassroots upward. However, it seems they’ve turned a blind eye to the imploding middle class and the teetering bottom rungs of society. Two-thirds of Americans express dissatisfaction with the current state of the economy, with the average American family witnessing a staggering $7,300 annual income loss since Biden’s inauguration.

The cost of a monthly mortgage has more than doubled, and heating homes this winter will be a 25 percent more expensive affair. Meanwhile, rents are surging to unprecedented heights, and American households are drowning in over $1 trillion of credit card debt. As families struggle to balance their shrinking budgets, the Treasury seems more preoccupied with fiddling while the nation’s financial stability crumbles around it. The clock is ticking, and the nation is rapidly running out of time to steer away from the impending financial precipice.