It has happened. The U.S. Federal Government now spends more per month servicing its debt ($140 billion) than on any other expense – more than Social Security ($129 billion), Dept. of Health and Human Services ($90 billion), Dept. of Education ($87 billion) and the Dept. of Defense ($63 billion). On an annualized basis, the interest debt payment is approaching $1.2 trillion and is increasing rapidly. The nation is drowning in debt and interest payments are like an anchor around the country’s neck. If you or I were spending more than we brought in, we could cut our expenses or borrow money and keep on spending until the bank says NO and we declare bankruptcy. The government; however, can issue more money (expand the money supply) through the Federal Reserve to pay off the debt and interest. Unfortunately, printing money devalues the currency. One dollar in 2021 is worth about 80 cents today. This cycle creates a self perpetuating doom loop – you borrow money to pay interest on borrowed money which results in total debt growing not in a linear fashion but exponentially. Politicians are loath to cut spending and constituents are not keen on belt tightening. Much like the Titanic on the night of April 14, 1912, the United States of America is on course for some tragic rough sea navigation.
The Debt Spiral Crosses the Point of No Return
World’s Top Banker Confesses He’s Deeply Concerned
Siberhusk