We are walking right off the cliff. We are swirling down the drain into a government debt apocalypse. No matter how you draw analogy, it’s bad…
The other day I was listening to Dan Bongino’s podcast (episode 826) and the last 5 minutes really struck me (although the entire show was excellent).
Anyone who knows or who has listened to Dan Bongino knows he is a very passionate man, ex Secret Service, has tons of insight into the going’s on of .gov, and has an excellent understanding and acumen into the politics of the day.
The following words are mostly his as I transcribe some of what he said:
We owe 100% of our entire economy. We as a country owe more than $20 Trillion in debt.
The entire economy is only worth $20 Trillion dollars!
Imagine this in your personal finances. Your entire net worth, your equity in your home, your stocks your bonds your savings your checking account all of your assets, everything you have. Imagine owing someone – ALL OF IT.
We do. We as a country owe all of it.
Interest rates are going up. That’s making money more expensive to get.
[ Ken adds: From ZeroHedge this morning ]
“Withought question cheap credit can have a stimulative influence on an economy with moderate debt levels. But once an economy has reached total debt saturation, where new debt fails to produce new growth, the cheap credit trick no longer works to stimulate the economy. In fact, the additional credit, and its flip-side debt, strangles future growth.”
Interest rates are still relatively low historically (but obviously going up).
How long do you think people are going to lend ‘the business of the United States’ money, knowing that the United States is walking into a debt apocalypse?
The risk of bankruptcy is growing literally by the day.
How long? I don’t know.
If we can sustain high growth rates maybe we can keep this up a little while longer. But sooner or later somebody’s going to turn in a tulip and say “This is crap and I want my money back”… (reference: tulip mania)
And we’re going to say (in a whisper) “we don’t have it”.
And he’s going to tell his friend “They don’t have the money.”
And they’re going to say, “What do you mean? I lent them $10 million dollars! Hey United States I want my money back!” (we don’t have that either.)
Then the contagion spreads. And then what happens? No one lends us money at all…
And then what happens? In order to get money, we have to pay interest rates that are like loan sharks. We’re going to say, “Okay lend us money and we’ll give you, say, 20% returns”.
Then it’s over. You’re in a debt spiral. You cannot possibly get out of bankruptcy. It is over.
Folks this is real.
This national debt is a menace coming ashore.
It gets sidelined all the time by the news cycle of the day.
We are literally walking off a debt apocalypse cliff right now. We are walking off that cliff and we are whistling the whole time like nothing’s happening.
There is a date in the future where everyone gets hip to the United States scheme and that we can’t possibly pay it back. We’re going to see a financial apocalypse like we’ve never seen before in this country.
There is an out of control grotesque abuse of government spending.
[ Ken adds: I’ve just updated my US National Debt Chart ]
Pretty crazy, yes?
It all started going nuts after we came off the gold standard.
“Monetary policy over the last three decades and over the last decade in particular, has placed the economy in the unfavorable position where more and more digital monetary credits are needed each month just to stand still.” -ZeroHedge
A dangerous situation is unfolding.
“It doesn’t matter if the Fed raises the federal funds rate or cuts the federal funds rate, or if Uncle Sam borrows more or borrows less. At this point, there is no way out.” -ZeroHedge
From a preparedness standpoint, what can we do?
I’ve posted on this topic many times. But again, the more you can set yourself up for self-reliance, self-sufficiency (at least to an extent) the better off you will be.
Plan for shortages. Shortages of what? Just plan for everything. Shortages of everything.
Dan Bongino’s best selling book:
Spygate: The Attempted Sabotage of Donald J. Trump