Federal interest charges are at historically high levels

 By now taxpayers are covering 600 billion I am sure.

Relative to real GDP, the ratio is 20 basis points from the recent record set in the 90s, during the recession.  Just prior to the 92 recession the ratio was 20 basis points below the record, as we have now.

The facts are that interest expenses are, for all purposes, at a record, a level in which we generally have recessions.  We also note the Fed has inverted the curve, because the Federal government does not have the do-re-me to cover interest charges.

That is why we are at a record, we are bankrupt.  Brad and Krugman can play the 'borrow more' game all they want, but the chart above, and the ratio clearly prove them to be liars when they say 'historically low'.

It is clearly the case that the 1990s ratio is exactly the case we have, exactly the same case Brad dealt with, and at the time Brad called it too high, he said interest charges unaffordable.   What happened after Brad got interest charges down? Lil Bush ran them up, and Brad said all the good work of fixing the debt problem was wasted.  Anybody see incompetence here? Fraud?

Are we in a recession?

 Real growth dropped from 3.3% or something to 2.6%, still a pretty good number.  That drop is no on this chart, yet. That drop in the ratio will break the record, we are in recession now, or the sequence has started.  When we actually get out blue bar is either this or the second quarter, the mass layoffs have started in the auto industry.

A big recession?
No, if we keep our ten year interest costs to around 2.5%, we can easily weather a small downturn.   But we won't. The keynesians are anxious to restart the cycle, they will drive the ten year up, crash housing suddenly, and we get a bit more severe recession.  Is that all? No, the public sectorouthere in California, or in New York, will collapse, I am sure; sudden layoffs of millions of minimum wage government workers.  The larger sudden collapse require a fairly stupid governor in California, or a dimwit New York mayor, itf we get either of those, we are screwed.

Brad and his ilk will kill off the millennials, and if you are one of them, and you vote for this nonsense, you are fucked for life.