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A few facts in support of my last post

October 31, 2016

I did a little research over the weekend regarding claims I made in my last blog post. I found some interesting facts that I thought I would share. According to the Bureau of Labor Statistics (BLS), higher education tops the inflation list of goods and services over the last two decades. Also, outstanding student loans now exceed $1.4 trillion. That is an astounding figure.

BLS price increases from 1996-2016:

-College tuition                 +197%

-Childcare                            +122%

-Health Care                       +105%

-Food                                    +64%

-Housing                              +61%

I have argued several times on this blog that we have borrowed our prosperity. We have maintained and even increased our standard of living by going further and further in debt. This borrowed prosperity comes in the form of increased balance sheets of our central banks (the Fed’s balance sheet has increased from less than $1 trillion in 2008 to around $4 trillion today), it comes in the form of personal corporate and government debt and it comes in the form of unfunded liabilities. All these categories have grown exponentially, particularly since the 2008 financial crisis. They are all forms of stimulating the economy while pushing off the bills. We seem to have very little thought of how we will ultimately pay down on these various deficits that now are in the hundreds of trillions of dollars in our nation alone.

The U.S. debt, excluding unfunded liabilities and the increased Fed balance sheet, increased by $2.2 trillion over the last 12 months to a total $20 trillion. Remarkably, China — not to be outdone by us — increased their debt by $4.5 trillion over the same period.

I just thought I would share what I found.

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One Comment
  1. Brian Killeen permalink
    November 1, 2016 8:47 am

    Thanks Jon, I agree with your points and think you have laid it out well. The worse part is that many/most people don’t really care beyond a passing review. But I trust in God and in that, my future is secure no matter the situation here.

    Brian

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