Thursday , 13 June 2024

A Reset Is Inevitable – Debt Must Be Paid, Defaulted Or Inflated Away

“…The U.S. government pays the interest by issuing new debt but that new debt increases total debt and (eventually) drives up interest rates, which requires more borrowing to pay the annual interest payments. Another year older and deeper in debt! A reset will occur when the debt load becomes too heavy…”

By Lorimer Wilson, editor of – Your KEY To Making Money! 

[This synopsis of edited excerpts* (439 words) from the original article (900 words) by Chris Christenson provides you with a 51% FASTER – and EASIER – read. Please note: This complete paragraph, and a link back to the original article, must be included in any article re-posting to avoid copyright infringement.]

“Borrow and spend is the lifeblood of the Wall Street and D.C. circus but it extends beyond Washington D.C. Consider these massive debt burdens in the U.S.:

  • Sub-prime auto loans. Defaults will rise in the coming recession.
  • Over $1 trillion in credit card debt. More defaults coming.
  • Over $10 trillion in mortgage debt. The 2008 recession hammered mortgage debt and related derivatives. The next recession could be worse.
  • About $1.5 trillion in student loan debt, much of which is deferred or in default. The next recession will illuminate the lunacy in this program.
  • Public and private pension liabilities are underfunded by many $trillions even though stock markets trade near all-time highs. The next recession will push many pension plans over the abyss.
  • U.S. government has unfunded liabilities of $100 – $200 trillion. Those liabilities increase every day and will be defaulted or paid in mini-dollars…

Another government contract, weapons system, wars, expanded welfare, free cell phones, ethanol subsidies, food stamps (SNAP), foreign aid to buy U.S. weapons… and the circus descends deeper in debt.

The Treasury Department issues bonds and sells them to the Fed. The Fed creates the dollars and buys the bonds. Insiders collect their swag, the government pays off corporations and voters, and those new dollars devalue existing dollars. Prices rise and the circus rolls down the road toward debt-ruin.

The game works until confidence in the currency and/or the Fed breaks. That confidence has not broken yet, but it will…

Another day older and deeper in debt. $21 trillion plus unfunded liabilities and rising $billions every day. If credit dries up, like in 2008, the piper will be paid in blood and bankruptcies.

Protect yourself from the coming reset:

  1. Reduce your debt load.
  2. [Prepare for] some retirement promises will not be paid.

A reset is inevitable. Debt must be paid, defaulted or inflated away.

  • Much of the debt can’t be paid.
  • Default creates immediate and devastating consequences.
  • Inflation and hyper-inflation are destructive but delay the consequences. Politicians like delayed consequences. Congress, the Administration and the banking cartel prefer inflation. Borrow and spend created inflation has worked for decades. The political and financial elite are unlikely to want change.

Gold and silver are real money. They will retain their value and purchasing power as dollars are devalued, and will be safe assets during the coming reset, regardless of when or how it occurs.”

(*The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.)

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