Sirwin
Sirwin

The Wall of Debt


The thing that scares me about the following analogy is that I can’t tell how much of my ego is intertwined with it.

On the one hand, it would prove that I was right about fiat and crypto.

On the other hand, I kind of don’t want to be right about it because of the pain and suffering that is going to come with it.

But just because I don’t want to be right doesn’t mean I’m not.

Here’s the analogy.

Right now, sovereign governments are sitting on a pile of debt. That debt amount is increasing as interest rates go up, particularly hitting hard those countries that are not the US.

But the US isn’t immune as we head towards the “doom loop.”

I see all of this debt as like a reservoir behind a great dam that is holding the entire fiat system together.

Every so often, it feels like there’s another crack in the dam, be it “printing by another name” by the Bank of England or the Credit Suisse issue or the UN warning the Fed about the impact of rate raises.

For now, the dam is holding, but I look at all of the signs and I can’t help but thinking that it’s a matter of time.

I just got a bit scared.

I was talking about this with a knowledgeable friend the other day and I asked him how come no one sees this or is talking about it.

His answer was: “they think it can’t happen here. This is the US, after all.” But then he continued,

“just because it hasn’t happened here, doesn’t mean it can’t happen here.”

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