Some frightening data with ominous portents

This will hopefully be the quickest lesson in economics you ever get. If I am successful, my point will be made before your eyes glaze over and your brain shuts down.

Picture a household budget. Wages add to the wealth. Spending decreases it. If you spend more than you earn, you have three possible courses of action: a) you spend less, b) you earn more, or c) you borrow.

A government has one additional option that you don’t have: they can run the printing presses and make more worthless paper money, and hope people won’t catch on that it’s worthless.

Our government has completely ruled out any thought of decreasing spending. So they’ve been “earning” more (by taxing the living daylights out of society’s producers), but they’ve also been spending as if money grew on trees!

Where’d they get that money that is over and above all the additional taxes? Well they’ve borrowed money from everybody on the planet, but particularly our “friends” the Chinese.

The US gubmint borrows money by selling US T-bills at auction. And it’s a darn good thing that all our “friends” around the world are so willing to help us stay afloat in our scheme to eternally refinance our debt huh? If this keeps up, we could wall-paper the whole world with T-bills!

But what if the world’s investors ever get wise? I suspect the colloquial way of putting it would be that we’re up Sh*t Creek without a paddle.

Take a close look at the graph below. Someone is getting wise to the gubmint's game!