The U.S. National Debt Reached $35T Last Week! Here’s What It Could Mean

Last week the national debt reached $35T, a mere 7 months after the debt reached $34T!

…Modern Monetary Theory asserts that as long as the central bank can monetize federal debt and keep interest rates low the government can endlessly increase the amount of debt…[but] those who pretend deficits don’t matter ignore the fact that interest on the national debt will soon be the largest item in the federal budget, consuming as much as 40 percent of federal revenue. This is unsustainable. The devaluation of the dollar resulting from the Federal Reserve’s efforts to stimulate the economy and monetize federal debt, combined with increasing resistance to US hyper-interventionist foreign policy, will lead to a rejection of the dollar’s world reserve currency status. When that occurs, there will be a major economic crisis unlike anything this country has seen since the Great Depression.

This crisis could lead to:

• increased support for authoritarianism – in both the left and the right – [and] the result…[would] be even greater restrictions on economic and civil liberties and even more belligerent foreign policy, scapegoating those who reject the dollar’s reserve currency status for the country’s economic problems.
• [On the other hand,]…the economic crisis also…[could] be followed by a society with minimal government and more liberty. The liberty movement is still growing. Those who understand the philosophy of liberty and sound economics must continue to spread the truth about the dangers of fiat money and the growth of government power and government debt. They must also communicate the benefits of the free market, personal liberty, sound money, and peace.

The above article, courtesy of The Ron Paul Institute. has been edited ([ ]) and abridged (…) by the editor of munKNEE.com to provide the reader with greater clarity and brevity for a faster and easier read.