In the first 224 years of our country, the government accumulated just under $6 trillion in debt. Since 2000, our country’s debt has increased over five-fold and is skyrocketing. Interest cost alone will easily surpass a trillion dollars.
Fitch recently downgraded US Debt, which will lead to even higher interest costs.
Reuters reports Treasury Secretary Janet Yellen complained:
“‘Fitch’s decision is puzzling in light of the economic strength we see in the United States,’ Yellen said. ‘I strongly disagree with Fitch’s decision, and I believe it is entirely unwarranted.'”
Remember when Yellen assured us:
“Will I say there will never, ever be another financial crisis? No, probably that would be going too far. But I do think we’re much safer and I hope that it will not [happen] in our lifetimes and I don’t believe it will.” — Former Fed Chairperson Janet Yellen
When it comes to Yellen, a picture is worth 1000 words. She is a typical politician trying to cover for the continual government misdeeds – caused by all political parties who have willingly put us in this huge mess.
“Inflate or die”
Matthew Piepenburg writes:
“What is Happening All About You? A Complete Denial of Debt’s End-Game
As headlines from an increasingly distrusted 4th Estate debate…most of America seems blind to a ticking time bomb.
…. Amidst all the political and social distractions of late, the financial wizards leading an increasingly splintered America, have been quietly doing what they do best: Sending the USA into a fatal debt spiral.
…. In fact, debt destroys nations. And not just sometimes, but every time.
Such destruction, hiding in plain sight, is creepy, because, well…it creeps up on us slowly, and then — all at once.
Fighting Inflation Will Increase Inflation
Powell’s comical, and ultimately disingenuous, war on inflation, for example, is actually poised to end in far greater inflation.
…. When a debt-strapped nation with nearly $33T in public debt raises rates to ‘fight’ inflation, the increased cost of servicing that debt becomes so egregious that the only way to ‘pay’ for it will come from a re-ignited mouse-click money-maker at the Fed, which is inherently, well: Inflationary.
…. At some point (and don’t ask me when, but it’s looming), the Fed will pivot from dis-inflationary QT to mega-inflationary QE—all to be conveniently blamed on COVID, Putin and/or the climate.
…. At that point we’ll see:
1) QE to the moon and/or
2) a monetary re-set that will make Bretton Woods look like a pleasant game of international snooker.”
Expert John Mauldin warns:
“Every Fourth Turning ends in a dramatic crisis. It’s not just a hold-your-breath moment where we watch to see what happens. It develops over a few decades and then climaxes over a few years. Nothing is off limits. Everything we consider foundational to society is at stake. Some of it doesn’t survive.”
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