The US national debt has surpassed $31 trillion while the federal government continues to send billions to Ukraine.
The massive debt is due to the federal government spending far more money than it takes in as tax revenue, meaning that the deficit money must be created, leading to inflation as the money supply is increased.
“Edging closer to the statutory ceiling of roughly $31.4 trillion — an artificial cap Congress placed on the U.S. government’s ability to borrow — the debt numbers hit an already tenuous economy facing high inflation, rising interest rates and a strong U.S. dollar,” AP reported.
The debt rose nearly $10 trillion in the past five years, due to Covid-19 money printing and Biden’s spending, including billions sent to Ukraine.
“It was $21 trillion just five years ago,” Congressman Chip Roy, a Texas Republican, stated.
Most recently, Congress approved more than $12 billion to Ukraine, adding to the $54 billion already earmarked for Ukraine this year.
Of the $12.3 billion sent, $4.5 billion is intended to “maintain the operation of Ukraine’s national government,” an amount that naturally will provoke sharp criticism from grassroot lawmakers and the American public.
A recent poll taken by Monmouth University shows that inflation is the top concern for Americans, which 82% of respondents saying it was extremely important.
According to the Mises Institute:
Inflation, always and everywhere, is primarily caused by an increase in the supply of money and credit. In fact, inflation is the increase in the supply of money and credit. If you turn to the American College Dictionary, for example, you will find the first definition of inflation given as follows:
Undue expansion or increase of the currency of a country, especially by the issuing of paper money not redeemable in specie.
In other words, the government is lowering the value of the dollar by creating more dollars and sending them to places like Ukraine.
Inflation was once described as a “hidden tax” on the public because it lowers Americans’ purchasing power just as if they lost more money to taxes.