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I remember well as a teenager in the early 80s and my history teacher at the time lamenting that the U.S. debt had surpassed $800B for the first time ever. He was so distraught. I can still see him shaking his head as he tried to explain to us how unsustainable it was to carry such a huge sovereign debt and that the interest payments alone would crash the economy. In those days, interest rates were hovering around 20%, the economy was already in recession and gold had just started coming down after hitting records over $800 per ounce from just $35 in 1971.
If only we could go back in time, sort of, to a time when the U.S. debt was 'only' $800B. If only. Somehow, since then, instead of remedying the situation, things have only gotten worse. Instead of austerity to bring down the crushing debt, we got more wars, in fact, decades of war which have resulted in multiple failures. You only need half a brain to understand that wars are not only deadly but also costly in so many ways.
I've mentioned in previous posts earlier this year warning that the U.S. debt service costs was fast approaching a terminal mark, one that would finally begin to attract the attention of the population en masse because, as my former teacher once tried to explain, it is simply unsustainable. Add to that the rising interest rates, thanks to central banks and what have you got? You've got a monster of a problem.
Investopedia warned about this problem just over a year ago when they noted on October 5, 2022 that rising interest rates would push the interest owing on the national debt past $1T for the first time sometime later in 2023. They saw the writing on the wall.
Since then, the debt has ballooned to over $33.7T and it looks like the USA is being drawn into yet another war in the Middle East. As mentioned earlier, wars are costly. Can the USA really afford to get into yet another military squabble? The numbers say NO! In fact, the numbers are quite straightforward.
Dr. Ron Paul, a retired Texas politician who once ran for President as the leader of the Libertarian Party is one of the few who are sounding the alarm. His most recent video (can be seen here on BitChute) specifically tackles the $1T interest owing and calls it a 'Fiat Dollar Milestone'. I have to agree. This record is for the record books!
It's not just you, me and Dr. Paul that are taking notice. Moody's not only took notice but have officially served notice by cutting the U.S.A.'s Aaa rating to negative (Yes, that's one large A and two small aa's). The funny thing is, the Treasury Department disagrees with Moody's assessments, according to this article on Zero Hedge published on Friday. Not surprising...
Some of you may recall that at the last debt ceiling fiasco in Congress, the debt ceiling was lifted altogether until 2025. You know what that means. It means more debt is about to be piled on, probably within a few weeks, just as interest rates are at their highest since the early 2000s. So if you think $1T in interest payments is bad, that number will continue to rise as more debt is piled on. God help us if the FED decides to raise interest rates higher. If, hypothetically, they were to raise it to 10%, interest payments would double.
If this isn't debt slavery, I don't know what is. Looking at the U.S. debt clock, the average American citizen now owes just over $100,000 while the average taxpayer is burdened with over $259,000 of debt (their share of the total debt). I know that average Americans don't have that kind of money.
Here in Canada, the federal debt has surpassed $1.2T and citizens collectively owe more than $30,000 each. I know the average Canadian doesn't have that kind of money. Canada's population is about one-tenth of the U.S. population. If you multiply $30,000 by 10, it means Canadians owe even more than their American counterparts.
What all this tells me is that the central banking system is collapsing, all while they're absolutely busy as hell with their plans to implements CBDCs. After enslaving us the way they have over the last 100 years or so, I don't think their CBDC plans are going to go very far. Central banks are all about central control (in the hands of the few). A new financial paradigm is on the horizon and I suspect that those who've invested in cryptos and precious metals are very aware it is coming.
Even the bigwigs like BlackRock want in on the action with their proposed Bitcoin / Etherum ETFs which may get approval anytime between now and January 10. They know the future is not in fiat dollars. Bitcoin has been rising as of late because of the anticipation these ETFs will draw institutional investors. Bitcoin, which nearly tipped above $38,000 this week, sits at $37,189 at time of writing. Seven days ago, it was at $34,718, a nice increase of $2,400 in one week.
Gold, on the other hand got a clubbing in the last few trading days, down to $1,938 but that's ok. It's still up $100 from the same time the month before. Whether the gold price is up or down, this hasn't stopped central banks around the world from loading up like they haven't done in some 60 years, led by the People's Bank of China, which year-to-date has accumulated 593 tonnes of gold. In fact, central bank gold buying is already on track for a record haul for 2023.
Personally, I'm getting really used to the idea that Bitcoin and real physical gold (and or silver) should go hand in hand. At best, we should diversify our assets in an effort to stay ahead of the game. Owning a small piece of farm land to live on and grow (and sell) your own food is just one way to diversify your wealth. Wealth comes in many forms, not just gold and Bitcoin and it's up to us to financially educate ourselves because the schools won't teach us.
(Fake Update: Representatives of the Guiness Book of World Records posed with Treasury Secretary Janet Yellen and Pres. Joe Biden on Friday to celebrate the record $1 Trillion interest owing on the federal debt. China's Xi Xinping arrived earlier in California to join in celebrating the 'Fiat Milestone'. Vice-President Scamala was nowhere to be found for some reason but we're sure she's celebrating too!)
Prepare. Stock up. Be ready.
Peace and love to everyone!
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