The Debt Spiral Ends In Dollar Destruction
“Whenever governments are granted power to purchase their own debt, they never fail to do so, eventually destroying the value of the currency.” – Ron Paul
1. It’s Politically Impossible To Cut Spending
It’s unlikely any politician will cut entitlements
Instead, defense spending is all but certain to increase.
2. Ever-Increasing Debt Is the Only Way To Finance Deficits
Even if the US government confiscated 100% of billionaire assets through a wealth tax, it wouldn’t cover even a single year of current federal spending.
Even after confiscating all billionaire wealth, the US government would still have to borrow more than $200 billion to cover FY 2025 spending.
3. Over Half of US Treasury Debt Matures by 2028
And every bond that comes due has to be refinanced at today’s much higher rates—locking in substantially larger interest costs for years. What used to roll over quietly can now only be rolled over at roughly double the interest cost seen in 2022.
4. An Ever-Growing Interest Expense Fuels the Debt Spiral
However, it is now reaching the tipping point. That’s because the US government is now borrowing money to pay the interest on the money it has already borrowed.
5. Surging Interest Expense Forces Fed To Ease Monetary Policy
Today’s higher debt load and accompanying interest expense are why meaningfully higher interest rates are not on the table; the growing interest expense could lead to the US government’s bankruptcy.
6. Ever-Increasing Currency Debasement Is Inevitable
“You can’t taper a Ponzi scheme.” A Ponzi scheme is an unsustainable scam that relies on a continuous influx of new money to keep it going.
https://internationalman.com/articl...n-6-hard-truths-america-can-no-longer-ignore/
As early as 1913 America lost sight of the future of its children with adoption of fractional reserve banking, exploding population numbers beyond any number ever to collectively exist.
Trump’s gambit to annex Canada only looks like a cover to conceal embarrassment in having to create a new currency and blame the mass devaluation on Canadians.
The only other way out I can see, we must close borders. Limit population growth. Intelligent animals including people organically recognise instinctively without instruction when their own numbers threaten themselves. I don't know what happened to China and India but I suspect worshiping multiple gods, i.e. ancestors and different manifestations of the same god upsets the instinctive urge to protect against excess numbers.
A doable task given G7 nations organic growth virtually zero and militarily robust enough to keep people out. An artifical intelligence ready to pick up the slack from an aging population. Those outside have to face their numbers alone. And the billionaires have to swallow no growth.
