Global Government Debt Surges Past $97 Trillion Mark The tariffs, initially a cause of concern for financial markets, are now being viewed as a crucial element of Washington’s financial stability.
I’ll just take a bunch of these. I need them more than you do. Trust me.
This shift in perspective has helped the U.S. avoid the worst of the recent government bond market sell-off, reported The Washington Post.
As government debt continues to rise in developed economies like the U.K., France, and Japan, investors are seeking higher yields on long-term bonds issued by these countries.
Notice that the article lumps together three nations, two of which are Monetarily Sovereign and one of which (France) is monetarily non-sovereign.
Grouping the finances of those three nations is like serving the same menu to a carnivore and a vegetarian.
France does not have a sovereign currency. It uses the euro, over which it has scant control. France can run short of euros.
The U.K. and Japan have sovereign currencies. They cannot run short of their currencies.
In fact, the article makes no mention of Monetary Sovereignty, though that is the single most important factor to consider when determining appropriate spending.
Global government debt has surged past $97 trillion—double its 2010 level—driven by pandemic-related spending and recovery measures, outpacing corporate and household borrowing, according to the Institute of International Finance.
Despite the U.S. public debt reaching a record $30 trillion, investors have remained relatively optimistic about U.S. treasuries. The yield on the 30-year Treasury bond briefly neared 5% this week but has risen far less than shorter-term government securities.
Gosh, I don’t know how I ever will pay my debts.
A key factor is the Congressional Budget Office’s forecast that tariffs will generate about $3.3 trillion over the next decade, helping ease worries about an otherwise fragile fiscal outlook.
Translation: A key factor is the Congressional Budget Office’s forecast that federal taxes will generate about $3.3 trillion, the bulk of this revenue coming from U.S. consumers.
The so-called “financial boon” means that a nation (the U.S.) that has infinite dollars (because it’s Monetarily Sovereign) will receive money (it neither uses nor needs) from its economy (which both needs and uses money).
The article’s author, Namrata Sen, terms taking dollars from the economy (which is what taxes do), as a “financial boon.” Why?
Because when the government sends more dollars into the economy than the economy sends to the government, this wrongly is called a federal “deficit,” and the total of “deficits” is “public debt.”
We more accurately should call it an economic “boon” or private sector “income.”
Tariffs Seen As Key To Easing US Fiscal Concerns The tariffs have managed to reassure investors, with the U.S. economy’s robust performance and the potential for a Federal Reserve interest rate cut further bolstering the appeal of U.S. treasuries.
Somehow, increased taxes (aka “tariffs”) have “reassured investors” that . . . what? The United States Government, having the infinite ability to create dollars, will be able to pay its dollar-denominated bills?
Does this make any sense?
I’m going to help American business by taking dollars from consumers. How’s that for a plan?
Priya Misra, a bond portfolio manager at J.P. Morgan Asset Management, stated, “The U.S. is outperforming because actually our [budget] deficit is marginally better with tariffs. Forget the economic justification of tariffs. It is raising a lot of revenue.”
“Marginally better” seems to describe the federal government sending fewer dollars into the economy than it takes out of the economy. How is that “better”?
Moreover, investors seem assured that the president would invoke alternative legal powers to reinstate any overturned tariffs, ensuring that revenue from import duties continues to flow into government coffers, opined Evan Brown, from UBS Asset Management.
Mr. Brown celebrates tariffs, which are taxes on imports — taxes paid by American buyers — flowing into government “coffers” (which do not exist).
Because the government can create as many dollars as it wants by pressing computer keys, it does not have or need any “coffers.” It pays all its bills by generating new dollars as needed.
Former Federal Reserve Chairman Alan Greenspan: “A government cannot become insolvent with respect to obligations in its own currency. There is nothing to prevent the federal government from creating as much money as it wants and paying it to somebody. The United States can pay any debt it has because we can always print the money to do that.”
Fake Trade Deficits
There are so-called “trade deficits” that actually are equivalent exchanges. They work like this:
Foreign nations send us products that require the expenditure of their precious labor and materials. In exchange, we send them dollars that we create by pressing a few computer keys. Who has the better deal?
Consider even private sector purchases, where you are the buyer. Unlike the federal government, you can’t create dollars by pressing computer keys.
When you “trade” with your local grocer, do you think of it as running a trade deficit? Should you pay a tax to make your groceries more expensive, so that you will be forced to buy less?
The Better Alternative
The claimed purpose of tariffs is to make imports more expensive so that Americans will prefer to purchase locally produced goods.
Is that what you want — to pay higher prices?
If the goal is to support local businesses, there is a better way. Instead of the government taking money from your pockets by increasing import prices, how about the government supporting local businesses and putting dollars into your pockets?
Here are examples of federal support for American businesses – support that unlike tariffs costs American consumers nothing.
1. Corn, wheat, soybean, cotton, and rice farmers receive direct payments, amd crop insurance subsidies. 2. Dairy and sugar industries also benefit from price guarantees 3. Oil, gas, and coal producers have long received tax breaks (like depletion allowances) and infrastructure support. 4. Solar and wind companies benefit from production tax credits, investment tax credits, and loan guarantees. Tesla and other EV makers get tax credits and grants. 5. Nuclear power has been subsidized through federal research, loan guarantees, and waste management programs. 6. Airlines received large subsidies during COVID (the CARES Act) and occasionally after crises (post-9/11). 7. GM and Chrysler received bailouts during the 2008–2009 financial crisis. Shipping & railroads: Subsidized through federal infrastructure spending and grants. 8. Big banks received massive bailouts in 2008–2009 (TARP program). 9, Federal Reserve liquidity programs benefit financial institutions during downturns. 10. Defense contractors (Lockheed Martin, Boeing, Raytheon, etc.) receive tens of billions annually in contracts—effectively subsidies. 11. Semiconductor industry—CHIPS and Science Act (2022) provides $52B in subsidies to companies like Intel, TSMC, Samsung. 12. Drug companies receive NIH research funding, purchase guarantees (e.g., COVID vaccines for Pfizer, Moderna, J&J), and Medicare/Medicaid reimbursements that keep sectors afloat. 13. Tax deductions for mortgage interest and real estate depreciation benefit landlords and developers. 14. The fishing industry receives subsidies for boat fuel and fleet modernization. 15. The telecommunication industry receives rural broadband subsidies
In short, nearly every major sector of the economy has federal support at some point. Keep in mind: Federal spending costs taxpayers nothing. The government does not spend tax dollars.
One ot the two purposes of federal taxes is to control the economy by giving tax breaks to what the government wishes to encourage. (The other purpose is to assure demand for the U.S. dollar.)
Supporting American businesses through this approach is much more effective than using tariffs, and it costs nothing.
The Only Way to Prevent/Cure the Coming Recession (or Depression)
As Trump’s inconsistent tariff policy and harsh deportation policy take effect, we will have a recession, but more probably a depression.
To prevent that unnecessary disaster, the federal government should:
Teach Americans that federal deficits and debt are necessary and beneficial to the economy, are not paid for by taxpayers, and do not threaten federal solvency.
The purpose of federal taxes is not to provide the government with funds for spending, but to regulate the economy and support American businesses.
United Airlines’ frequent flyer deficit in 2024 was $298 million, bringing the total frequent flyer debt to $7,441 billion. This is a ticking time bomb.
The $7.4 billion in frequent flyer debt is yet another stunning reminder of the terrible state of United’s finances. Spending miles and receiving miles are woefully out of balance – to the tune of nearly $3 million annually and rising – and instead of addressing this imbalance, United keeps choosing to make things worse.
Except this is all nonsense.
It’s a lift from an August 12, 2025, article by the Committee for a Responsible Federal Budget (CRFB), which is a regular fountain of nonsense. Here is precisely what the CRFB article said.
“The gross national debt hitting $37 trillion is yet another stunning reminder of the terrible state of federal finances. Spending and revenue are woefully out of balance – to the tune of nearly $2 trillion annually and rising – and instead of addressing this imbalance, Congress keeps choosing to make things worse.”
There are direct parallels between United Airlines’ frequent flyer miles and U.S. federal deficits and debt:
1. Infinite Issuer
United: Can issue as many miles as it wants. There is no operational limit.
Federal Government: Can issue as many dollars as it wants. There is no operational limit.
(Federal Reserve Chairman Ben Bernanke: “The U.S. government has a technology, called a printing press or, today, its electronic equivalent, that allows it to produce as many U.S. dollars as it wishes at essentially no cost.”)
Neither needs to “get” miles or dollars before creating them. Dollars and mileage credits are not physical; they both are nothing more than bookkeeping notations.
2. Deferred Redemption (a.k.a. “Debt”)
United: When miles are awarded but not yet redeemed, they show up as a liability (“deferred revenue”) — in 2024, that was $7.441 billion.
Federal Government: When the Treasury spends more than it taxes, the difference (the so-called “debt”) is really just outstanding government securities — promises to accept back the dollars it created in the first place. Both a dollar bill and a T-bill are dollar-denominated obligations of a government that can make an infinite number of dollars.
In both cases, these “debts” are just obligations to honor the thing the issuer itself controls.
3. Deficit as Ongoing Flow
United: Each year, miles created exceed miles redeemed — a “miles deficit.” But that’s precisely what keeps the program alive and attractive. If miles were never made in excess, the system could not function.
Imagine what would happen if United were to demand that its customers give back more miles than they received — similar to the federal government running a surplus. The entire system would collapse, just as the economy collapses when the government runs a surplus.
Depressions and Recessions Begin With Federal Surpluses
1804–1812 48% 1807 Depression began in 1807
1817–1821 29% 1819 Depression began in 1819
1823–1836 99% 1837 Depression began in 1837
1852–1857 59% 1857 Depression began in 1857
1867–1873 27% 1873 Depression began in 1873
1880–1893 57% 1893 Depression began in 1893
1920–1930 36% 1929 Depression began in 1929
1947–1948 3.6% 1949 Recession began in 1949
1969–1970 3.4% 1970 Recession began in 1970
1997–2001 15% 2001 Recession began in 2001
Federal Government: Each year, dollars spent typically exceed taxes collected — a “fiscal deficit.” But that’s precisely what keeps the private economy supplied with net financial assets. Without it, economic growth stagnates, and we experience recessions or depressions.
4, Control over Rules and Laws
United has complete control over all the rules about the use of its mileage credits.
The federal government has complete control over all the laws about the use of dollars.
5. Not a Threat
United’s miles: Nobody worries that a growing balance of unredeemed miles will bankrupt the airline. In fact, the mileage program is the airline’s largest profit center. (The airline loses money on flights.)
Redemption is completely under United’s control; it determines how mileage points are used, and predictable breakage occurs. Additionally, United can always issue more points if it wishes.
Federal “debt”: Likewise, it’s not a threat to the U.S. government. The federal government has the infinite ability to pay debts, interests or any other financial obligation denominated in dollars. The danger comes only from artificial limits (e.g., debt ceiling politics), not from the mechanics of issuing dollars.
IN SUMMARY
United’s “mileage debt” is not a financial danger to United. It is a profit center. Likewise, the federal “debt” is not a financial danger to the government. It is a profit center for the economy.
United’s mileage program and the government’s deficits are artifacts of accounting terminology, not solvency constraints. Both have minimal cost and are highly profitable — the former for the airline and the latter for the economy.
The danger isn’t in the numbers—it’s in the myths we build around them.United Airlines’ mileage program and federal finances. United has an infinite supply of mileage credits; the government has an endless supply of dollars. The supply of mileage credits and dollars is entirely controlled by their issuer.
Have you read any articles claiming that undocumented young children are a danger to America? Have you heard any newscasts from Fox News announcing that undocumented children are out there raping and pillaging?
No?
Neither have I.
All I can say about these children is that, being alone and frightened, they urgently need the care and compassion they are unlikely to get from Trump and his band of MAGAs.
If the following article doesn’t make MAGAs sick and ashamed of what is happening to America, they indeed are the disgrace that Trump has made them.
In an effort reminiscent of US President Donald Trump using the Alien Enemies Act to send hundreds of migrants to a Salvadoran prison, his administration just tried to deport more than 600 unaccompanied children to Guatemala over Labor Day weekend—though for now, a federal judge’s order appears to have halted the plan, unlike last time.
Take a moment to let that sink in:
More than 600 unaccompanied children.
URGENT “DANGER” TO AMERICA? HOW TRUMP TREATS HELPLESS CHILDREN.
There is no reason for it. Trump, the heartless coward, does it simply because he can. This is how the world sees America now, no longer the “shining city on a hill,” but as a low, mean-spirited, cowardly dictatorship, crouching in the shadows of shame.
CNN exclusively reported Friday morning that the Trump administration was “moving to repatriate hundreds of Guatemalan children” who arrived in the United States alone and were placed in the custody of the Office of Refugee Resettlement. Subsequent reporting confirmed plans to deport the kids, who are ages 10-17.
Fearing their imminent removal after the administration reportedly reached an agreement with the Guatemalan government, the National Immigration Law Center (NILC) launched a class action lawsuit around 1:00 am Sunday, seeking an emergency order that was granted just hours later by a federal judge in Washington, D.C.
“Plaintiffs have active proceedings before immigration courts across the country, yet defendants plan to remove them in violation of the Trafficking Victims Protection Reauthorization Act of 2008, the Immigration and Nationality Act, and the Constitution,” NILC’s complaint explains.
Efrén C. Olivares, vice president of litigation and legal strategy at the NILC, said that “it is a dark and dangerous moment for this country when our government chooses to target orphaned 10-year-olds and denies them their most basic legal right to present their case before an immigration judge.”
“The Constitution and federal laws provide robust protections to unaccompanied minors specifically because of the unique risks they face,” Olivares noted. “We are determined to use every legal tool at our disposal to force the administration to respect the law and not send any child to danger.”
U.S. District Judge Sparkle Sooknanan issued the order just after 4:00 am Sunday, finding that the “exigent circumstances” described in the lawsuit warranted immediate action “to maintain the status quo until a hearing can be set.”The judge, a Biden appointee, initially scheduled a virtual hearing on the matter for 3:00 pm Sunday, but later moved up the hearing to 12:30 pm after being notified that some minors covered by the suit were “in the process of being removed from the United States.”
Sharing updates from the hearing on social media, Cheney reported that Sooknanan took a five-minute recess so that US Department of Justice attorney Drew Ensign could ensure that the details of her order reached the Trump administration, which is pursuing mass deportations. Ensign confirmed to the judge that while it’s possible one plane took off and then returned, all the children are still in the United States.
Following the judge’s intervention, NILC’s Olivares said in a statement that “in the dead of night on a holiday weekend, the Trump administration ripped vulnerable, frightened children from their beds and attempted to return them to danger in Guatemala.”
“We are heartened the court prevented this injustice from occurring before hundreds of children suffered irreparable harm,” he added. “We are determined to continue fighting to protect the interest of our plaintiffs and all class members until the effort is enjoined permanently.”
Next year, we will have midterm elections. Keep this disgusting cruelty in mind when you enter the voting booth. Decide whether this purposeless cruelty against helpless children is the America you want.
You know who is doing it. You know they will keep doing it if given the opportunity. Never forget what they are.
Children, for God’s sake. Children! What is wrong with those people?
WOKE: Being aware of, and opposed to, social injustice —racism, sexism, homophobia, trans rights, environmental justice, etc,
This Is Woke
Racism is the belief or practice that people can be ranked as superior or inferior based on race, skin color, or ethnicity.
This is Woke
Sexism is prejudice, discrimination, or stereotyping based on a person’s sex or gender. It usually involves treating one sex (traditionally women) as inferior, less capable, or less deserving of rights and opportunities.
This Is Woke
Homophobia is prejudice, fear, dislike, or discrimination against people who are homosexual—or more broadly, against people who are lesbian, gay, bisexual, transexual, or perceived as such.
This Is Woke
Environmental Justice demands that no group of people should bear a disproportionate share of negative environmental consequences from industrial, governmental, or commercial operations.
This Is Woke
“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. “
This Is Woke
This Is Woke
This Is Woke
This Is Woke
“Our country will be woke no longer.”
#Monetary Sovereignty - Mitchell 