Biden Ignores Nation’s Biggest Problem in State of Union Address
President Biden has given his 2023 State of the Union Address. In it, he failed to even mention the nation’s biggest fiscal problem—the skyrocketing cost of the national debt occurring on his watch.
Global economy analyst Mike Shedlock illustrates that problem:
The chart shows the cost of servicing the U.S. national debt rose during President Trump’s time in office but has absolutely exploded during President Biden’s short two years in office. This explosion has been caused by rising interest rates, which were caused by the inflation unleashed by President Biden’s fiscal policies. Policies that have proven to be costly mistakes.
What could have been done differently? Mike Shedlock describes how the cost of having such a large national debt coming out of the coronavirus pandemic could have been handled better:
Between February of 2020 and February of 2021, the US Treasury had a golden opportunity to refinance long-term debt at 2.0 percent or under, most of the time well under 2.0 percent.
The 30-year bond yield bottomed at 0.99 percent. That was the secular low. The decades-long bond bull is over.
While that would have been the optimum time, the U.S. Treasury could have gotten nearly as good results during President Biden’s first year in office. Interest rates stayed low until the Federal Reserve was forced to raise them in March 2022. But neither the President nor anyone else in his administration did. Biden squandered the opportunity.
President Biden’s choice to ignore the biggest fiscal problem the nation faces was no accident. It’s been his administration’s policy since Day 1.