economy
America is on the verge of bankruptcy. Nothing will matter when the crisis hits
We are all concerned about the many problems we face today: inflation, affordability, a world at war, the list goes on. That will all be irrelevant if the United States goes bankrupt. Make no mistake, that is where we are headed if we continue our current path.
TL;DR
- The US is currently insolvent, unable to pay its obligations without borrowing more money.
- The US has approximately $39 trillion in interest-bearing debt and $136 trillion in unfunded obligations.
- Last year, the US borrowed $10 trillion to cover $8 trillion in maturing debt and a $2 trillion deficit.
- This financial structure is compared to a Ponzi scheme and is unsustainable, with a potential collapse when investors lose confidence.
- A loss of confidence would lead to either default on obligations or massive money printing, resulting in devastating economic consequences.
- A US financial crisis would become the most critical issue, overshadowing all others and potentially collapsing the global economy.
- Restoring financial sanity requires public support for Congress to take difficult actions like raising taxes or cutting spending.