The Financial System Is Drowning in Debt

Would this be a healthy business to invest in or better yet would this be a good entity to back your money:

  • The total debt of this entity is a minimum of $31 trillion; it’s probably over $200 trillion.
  • Assets owned are roughly $4.8 trillion.
  • These assets are the result of debt and fake money.
  • Annual interest paid on the debt in 2024 will be roughly $1.2 trillion, or approximately $3 billion per day.
  • This entity is running a brilliant $1.4 trillion annual deficit with a projected $2 trillion deficit for 2023.

This entity is the US Government. This is the same entity that guarantees the value of our money. What a sham and a disgrace!

America is becoming a big government socialist state. Many Americans are seeing years of irresponsible spending on pandemics, foreign proxy wars, foreign “aid” (aka bribes), and climate change agendas. Much more social spending and money printing are on the way. This is inevitable as our financial system is addicted to debt and fake money. US debt is over $31.4 trillion, which is 120% of the GDP. Supporters of MMT (Modern Monetary Theory) claim we can print infinite money with no consequence. I would say you are delusional and our money will be toilet paper in the future. I would say your theories are a disgrace to the greatest country in the world. Did you know that $34 trillion in $100 bills would be over 19,500 miles high? The answer to all of this is to spend and print more fake money to take on more debt. Our financial system is drowning in debt and is doomed.

Janet Yellen will take “extraordinary measures” to keep the government solvent

On January 19, 2023, Janet Yellen, the Treasury Department Chairperson, wrote a letter to Kevin McCarthy, the Speaker of the US House of Representatives. She encourages Congress to act promptly to protect the full faith and credit of the United States. Chairperson Yellen states that in this present situation, there is a debt issuance suspension period to fully invest in the Civil Service Retirement and Disability Fund until June 5, 2023. Additional investments will also be suspended for the Postal Service Retiree Health Benefits Fund. These entities will be made whole once the debt ceiling is lifted again.

The debt ceiling has been lifted 78 times since it was initiated. You can’t make this stuff up. The answer to all of this is to raise the ceiling again, create more fake money, and spend more monopoly money. All of these politicians are direct contributors to our debt and the eventual collapse of our financial system as we know it. They will all argue for their own agendas and in the end, it won’t matter. All of you are embarrassing and this whole system relies on the ability to create fake money until you can’t. None of you would ever admit it because the whole system is built on it. This is a situation where the financial system and our money will pay the ultimate price. This is a system where our money will eventually be almost worthless.

Our enormous debt will implode our financial system

After the internet bubble in stocks burst in 2000, the Fed used a big decrease in the Federal Funds rate to stimulate the economy. Remember to avoid a big recession interest rates are lowered. Our present-day situation is the Fed is raising interest rates which are causing markets to swoon and forcing companies to lay off workers. After stocks crashed for over two years in 2003, the investment community took advantage of cheap money to build up the housing market. The housing market was then brought down by subprime lending around 2007 as the economy cooled leading up to the Great Recession and ensuing global recession in 2009. This is when the printing of money starts to accelerate. The recklessness for printing and spending takes a turn towards the insane and exponential. This insane money printing has a direct correlation to greed and corruption. This financial greed and corruption which continues today will be the ultimate demise of our system and our dollar.

In 2009 the Fed started Quantitative Easing 1. In 2011 the Fed started Quantitative Easing 2 and Operation Twist. Right before 2013, Quantitative Easing 3 started. These are all fancy names for printing money out of thin air to hold the markets up and delay a collapse. It doesn’t fix the problem, just delays the inevitable. The Fed started its bond-buying program in September 2019 as net purchases became positive again. In 2020 the Fed bought over 50% of the US Treasuries issued. The last 20 years have been built up and held up by enormous debt. This is an unfixable debt that will destroy our dollar and significantly devalue most paper assets. Our financial system is on fumes and is doomed from decades of reckless monetary policy starting in 1971 when our dollar was taken off the Gold Standard.

The US debt is going parabolic and accelerating the financial system’s demise

In 1980 President Reagan took office with $900 billion in government debt. President Biden took office in 2020 with $28 trillion in debt. We are now close to $32 trillion in debt and possibly $40 trillion by the time Uncle Joe is done in 2024. Does anyone realize it would take 982,000 years to count to 31 trillion dollars? How on God’s good earth can this make sense? How can this possibly end well? To every investor out there, it won’t. $3 trillion from US retirement accounts, according to Alicia Munnell, director of the Center for Retirement Research at Boston College, has been lost in 2022. By her calculations, 401(k) plan participants have lost about $1.4 trillion from their accounts since the end of 2021. The “everything bubble” created by printing fake money and enormous debt is bursting. It could take many years for this to fully play out but the writing is on the wall.

In 1978, US debt to GDP was about 30%. Today it’s approaching 130%. US debt has exploded by close to fifty times since the early 70s, while GDP is up less than twenty times. For anyone who can do simple math, this is unsustainable to have a healthy monetary situation. We already discussed investing in such an entity. If you are holding dollars or bonds you are investing in this entity. If you have paper investments like mutual funds or stocks, you are risking your nest egg in this insolvent entity. Do something about that today and move some of those assets into physical gold. Physical gold is not insolvent, is liquid, is not bankrupt, is controlled by you, and is not part of this fake system that we have all of our wonderful politicians and central bankers to thank for. The financial situation is dire and is barely holding on. Do something while you still can.

US debt could be $50 trillion by 2025. The Fed has over $7 trillion of assets on its balance sheets now and is attempting to get some of it off as well since March and raising interest rates at the same time. A recession is likely and a financial meltdown is inevitable. The Fed had $830 billion in 2006 on its balance sheet now $7 trillion. Why do you think the markets did well for a decade? The government prints money out of thin air, pays interest on it, sells US Treasuries to the banks, and then the Fed buys a good portion of those bonds and parks them on its balance sheet. Our government thinks they have quite a nice little game going. The real news is that this debt will matter and is toxic. This debt poison is spiraling out of control and picking up speed. All this US debt and much more on the way will implode our financial system as we know it. Who knows what our money will be worth ten years from now? The guaranteed answer is that it will be worth much less.

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