Debt & Deficits

According to the Federal Reserve, U.S. consumer debt is approaching a record-breaking $16 trillion and today's infographic provides context using data from the end of 2021.

The madmen who are responsible for the coming economic disaster continue to behave as if they can manage to avoid it. Violating Einstein’s definition of insanity, they continue to apply the same poison that caused the problem. These fools believe they can manage complexities they do not understand. The end is certain, only its timing is unknown, and, once interest rates begin to rise, and they will, it's game over so it begs the questions "How much longer this can possibly go on?" and "What will happen to the U.S. and the world when it does?"

The following chart indicates...[the extent, in percentage terms, to which various] entities have loaned money to the U.S. government...[and, as such,] their share of the U.S. national debt as of 30 September 2021.

A BIS study warns that budgets of most advanced economies, excluding interest payments, "would need 20 consecutive years of surpluses exceeding 2 per cent of gross domestic product – starting now – just to bring the debt-to-GDP ratio back to its pre-crisis level".

OK, folks, let’s get some popcorn and watch “The Debt Ceiling Farce 2021” as it unfolds! Everyone knows how this will end. Since 1960, the farce played 78 times. Each time, after everyone got through extorting concessions from the other side, Congress either raised the debt ceiling, extended it, suspended it, or changed the definition of “debt.” That’s how it ends.

The debate in Washington over when and how to increase the debt limit is less than 100% accurate. Here are some myths about the debt ceiling and the debate about raising it.

Debt has risen on all fronts to unprecedented levels...and now accounts for $52 trillion in the USA of which American household indebtedness amounted to an average of $118,000 per household in 2020. That’s a big bill to pay. Here’s how the various forms of U.S. household debt compare...

Explosive fires always end in everything burning down or imploding eventually and this is just what is going to happen in the next few years. A massive forest fire is not just totally inevitable but is also an absolute necessity.

With deficits growing wider each year, we believe there is a very high likelihood that the price of gold will rise in the next few years.

There appears to be no end in sight to the borrowing and spending. As such, the U.S. central bank has worked itself between a rock and a hard place - rampant inflation or a crashing dollar. Let me explain.