America's Foreign Bankruptcy...

United States Government’s Debt Disaster of$33+ Trillion of Colossal Debt. Skyrocketing Government Spending, insufficient Tax Revenues, and ever-deepening Deficits. The US Treasury has run out of other People's Money to borrow and steal.

Interest paymentsdoubled since 2020, and pushed the Government off the Fiscal Cliff like Wile E. Coyote. The Federal Reserve’s 2023 Rate hikes added to the turmoil.A recent US Treasury Auction turned Horrific and CHAOTIC.No one wants our Phony Monopoly Money nor our Worthless Treasuries...

The chickens already came home to roost for the US Treasury. The origin is profligate Government Spending which spikes during Crises, Spending is increasing alarmingly outside of Crisis periods. Tax Revenues aren't keeping up. Government expenditures spiked during the 2020 Crisis, ignoring those spikes, annual Spending increasedby $1.6 Trillion since 2019, while Tax receipts increased by about $600 Billion. Yet again, Do The Math...

The Government is forced to borrow to make up the difference, What do we call this, Ladies and Gentlemen?! Yes we call it, DEBT! Total Public Debt balloonedover $32 Trillion, over 180% percent of Gross Domestic Product (GDP), excluding Government Spending and Transfers.

Due to the unpopularity of Stratopheric Prices and the inexorable tendency for the Market to reestablish Interest Rates that accord with people’s real time preferences, the Fed allowed Interest Rates to rise, combined with Government's skyrocketing interest payments which were over $500 Billion in 2020, now they've doubled.

Congressional Budget Office projections show interest payments will swallow the Budget. The Government will be forced to use More Debt to pay off Past Debts.

Figure 1: Congressional Budget Office: Deficits as a percentage of GDP

Source:The 2023 Long-Term Budget Outlook(Congressional Budget Office, June 2023), figure 1-1.

On top of all of this, the US Treasury is running out of Creditors and Buyers for its Debt. The Fed, which has always been a ready buyer of Government Debt with newly created money, is allowing its holdings of US Treasury Securities to roll off its balance sheet. It cannot resume Monetizing the Debt without exacerbating Inflation which exaserbates Higher Prices, which is still above its stated target of 2% percent.

Figure 2: Treasury Securities held by the Federal Reserve

Source: “Assets: Securities Held Outright: U.S. Treasury Securities: All: Wednesday Level,” FRED, Federal Reserve Bank of St. Louis, last updated November 22, 2023. Data fromFactors Affecting Reserve Balances, Federal Reserve Statistical Release H.4.1 (Board of Governors of the Federal Reserve).

Like the Reserve, Foreign Governments (China and Japan) reduced their purchases of Treasurys, leaving the US with a smaller Customer Base for its Debt. Robert P. Murphy showed recently, theproportion of Debtheld by Foreign Governments declined since 2014.

Figure 3: Federal Debt held by Foreign investors as a proportion of Debt held by the Public

Source: “Federal Debt Held by Foreign and International Investors (FDHBFIN)”and “Federal Debt Held by the Public (FYGFDPUN),” FRED, Federal Reserve Bank of St. Louis, last updated September 1, 2023. Data from the U.S. Department of the Treasury Bureau of the Fiscal ServiceTreasury Bulletin.

This too-much-supply and not-enough-demand phenomenon came to a head at an October Treasury auction that turned into afiascowhen 30-year yields reached 4.837 percent and primary dealers, required to purchase any leftovers, had to mop up over 18% percent of the auctioned Debt. Everybody’s appetite for US Government Debt is done with including Foreigners, the Government's own money printer and favored Financial Institutions.

What does this mean for next year, when $7.6 Trillions in Government Debt willmature? This is a third of all of the US’s outstanding Debt, which means a ton of supply is hitting this market with already declining demand forcing the Government to tighten its belt (flying pigs are more likely), it'll have to replace maturing Debt with more new Debt.

Here are some possible and likely scenarios:

A Financial crisis and official Recession occur, giving the Federal Reserve “permission” to flood the Bubble Economy with new money, lower Interest Rates, and make another massive purchase of Government Debt, like prior Crises. The issue with this scenario is that the Federal Reserve still battling Inflation. We'll have 1970s-style Stagflation, the Federal Reserve will be forced to choose between dealing with unpopular Inflation and unpopular Unemployment. If we're capable of learning from experience, we know what it takes to get out of such a painful but healthy and necessary correction precipitated by a Volcker-style sharp increase in Interest Rates. Treasury auctions continue to flounder, leading to a Debt Crisis.

Treasury yields skyrocket as the whole world loses confidence in the US Government’s ability to repay its Debts. It’s difficult to imagine such a globally catastrophic scenario, especially since the US has its own money printer. It seems the Federal Reserve the US Government would happily choose to inflate to avoid that outcome. The US Government performs a “soft default,” similar to itsactionsin the 1930s and in 1971, in which the Dollar is transformed to rescue the Government from its Debt obligations.

In the 1930s, the Government devalued the Dollar by changing its Gold redemption ratio from $20.67 to $35.00 per ounce, as well as limiting and prohibiting Gold ownership for US Citizenry. In 1971, Nixon “temporarily” (read: permanently) reneged on the US’s promise to redeem Foreign Government's Dollars for Gold. The US will implement aCentral Bank Digital Currency(CBDC). A CBDC could be programmed to have negative interest rates and other incentives that would push CBDC holders to buy Government Debt, this Tyrannical move would be disastrous, but the ability to control Interest Rates, increase Tax Revenues, and direct and stimulate Spending makes this option very attractive to a Debt and Crime-Riddled Government.

Of course, we'll see a combination of these unfold in 2024 and beyond. The opportunity to protect and position oneself is still open, alot of the American Public and Voters will figure this out, too little too late...

The US Bubble Economy continues to hide behind surging Debt and Government Spending asnoted by Daniel LaCalle...

The increase in Gross Domestic Product between the third quarter of 2022 and the same period of 2023 was a mere $414.3 Billion, according to the Bureau of Economic Analysis, while the increase in Public Debt was $1.3 Trillion ($32.3 to $33.6 Trillion, according to the Treasury). Do The Math...

The United States is in the worst year of growth, excluding Public Debt accumulation since the 1930s. It's apparent that total Public Debt isn't slowing down.

According to thelatest monthly statement from the Treasury Department, the total Budget Deficit for the 2024 Fiscal year (which began October 1) has already risen above $380 Billion. The new total, which includes the months of October and November puts the US on track for a total Annual Deficit of $2 Trillion by the end of the Fiscal year. That'd be an increase of 25% over 2023 Fiscal year, itself a 23 percent increaseover 2022.

A 2024 Annual Deficit of $2 Trillion would make2024's Deficitthe third-largest Deficit behind only 2020 and 2021 during which Spending in Covid-related Social Benefits were seemingly unlimited.Comparing the same two-month period over the previous decade, the totals also suggest Deficit Spending in 2024 will lag only the Covid-19 years of 2020 and 2021. During the first 2 months of Fiscal year 2021, the Deficit came in at more than $429 Billion.

The American Debt Train Wreck isn't slowing. After reaching$33.1 Trillion at the end of the third quarterthis year, the total Debt will reach $34 Trillion by the end of this month. The US will add more than $7Trillion to its Debt since 2020. It's noted that total Revenue for the US the 2023 Fiscal year was $4.4 Trillion. (Total Debt in FY 2023 topped 38 percent of all federal receipts.)

The American Public, Taxpayers and Consumers are numb to Debt numbers since it has long felt like "Free" Money. From the 2000's to 2022, real Interest Rates were 0% which means the US Government borrows money at rock-bottom Rates, maturing Debt paid with new Debt at evenlowerInterest Rates.

That ended in 2022. The interest paid on new Debt accelerated, the total amount of interest paidon the Debt each year will double from 2019 to 2024. For example,the yields on 10-year Treasuryssurged throughout 2022 and most of 2023, nearly reaching 5% in October 2023. On the other hand, from 2012 to 2022, the yield on the 10-year was between 2% and 3% percent. The 10-year yield has fallen since October, dropping below 4 percent. That’s still more than double of what has come to be regarded as "normal" amplifying the true cost of the National Debt. The total National Debt has increased by 25 percent. Interest paid on the Debt has increased by 75 percent, nearly $573 Billion in 2019, it'll top $1 Trillion in 2024.

This rate of increase surpassed every category except "income security"which including the Covid-related panic Spending. Social Security increased 40 percent, and Medicare increased 30 percent.

If the current trend in interest and Debt continues, Congress will make very unpopular Spending decisions. Interest payments are now more than Military Spending and Medicare. If Debt continues to mount at the current rate, the requirements of Debt service will swamp the Budget requiring cuts to ensure Bondholders get paid.

It's easy to imagine a full one-fifth of the Budget going to paying for Bonds in the future. For every 100 Dollars in Taxes the US Government steals from the Taxpayer— via Income and Payroll Taxes—20 percent of it'll go to Interest payments, which are just payments on old Debts for lost Warfare, failed Schools, retired Government Employees, and countless Bernie Madoff style Pyramid Schemes.

We're already in a mounting Debt spiralas the Central Bank prints Dollars in an attempt to pay Debts while avoiding the Fiscal Austerity disaster.

The only possible Silver lining is it becomes obvious that interest payments are fleecing today's Wage Earners, it'll make Political sense to repudiate the Debt. Murray Rothbard wiselynoted, the idea that the Government has some sort of moral obligation to pay its Debts has always been nonsense. Interest payments paid for by Tax Dollars are nothing more than a forced Wealth transfer from Taxpayers to Bondholders. Yet, Bondholders voluntarily took the risk of US Debt. If the US defaults, well that's tough luck and a risk investors adopted willingly. Taxpayers, are anINVOLUNTARY PARTY to the Agreement. The Moral thing to do is freeing US Taxpayers from these obligations to begin with.

Its rightly been said, It's easier to fool someone than to convince them they got played for a Fool, after all, the US Government made them these Promises they never could deliver in the first place. At some point, You cannot rob Peter to pay Paul, you cannot rob Tom to pay Peter and Paul, and you cannot ask Jane to subsidize all this either. If you make a deal with the Devil, he's eventually coming to collect his due one way or another.

Significant Financial, Economic, Political, Cultural, and Geopolitical developments occurred in preceding 2001 and now into 2024.

On the Cultural front, 2023 in particular was the year that the tide started to shift. BlackRock’s Fink dropped ESG. Woke movies continue to bomb at Theaters. Bud Light, Target, and Disney continue to feel the pain of deliberately alienating their Customer Base.

It became evident to even the Corporate Media that the debacle in Ukraine was an utter disaster for NATO. There was also the Hamas Attack and the Israeli invasion of Gaza. Azerbaijan defeated Armenia to reclaim a long-disputed Territory.

Saudi Arabia welcomed Syria back into the Arab League, ended the Warfare in Yemen, restored Diplomatic Relations with Iran, joined the BRICS Countries, and expanded its Economic ties with China.



The United States continued the trend of more Political polarization. The Jacobins who control Washington, DC, have the same psychological makeup as past revolutionaries I’ve mentioned. They're incapable of changing their minds or reforming. They’ll do absolutely anything they can to retain power.

Meanwhile, traditional American Taxpayers and Consumers in Red states see that Candidates are being railroaded with Lawfare to derail their Campaigns. They’re angrier than ever, justifiably. The Red people and the Blue people really hate—and can’t talk to each other.

The US has been completely demoralized as Traditional Values have been washed away. It’s now very unstable.

The 2024 Roll of the Dice, (should we actually have one) won't be a Political but a Cultural contest. Culture Wars are especially dangerous in a Financial Crash and Economic Collapse.

The American Public, Taxpayers, and Consumers are still paying for the rampant Currency debasement during the manufactured Covid Hysteria as the Price of Groceries, Insurance, Rent, and etc continue to rise.

The United States has long since moved away from the founding principles that made it unique for 100+ years. The trend has been accelerating. The US is in the early stages of an ungodly Crisis resulting in a really serious Greater Depression.

The gap between the Haves who live in Multimillion Dollar houses and the Have-Nots who live in Tents isn’t new. After all, Jesus said, “The poor you will always have with you.” What’s new is that the Middle Class is being impoverished. What’s left of the Middle Class is deeply in Debt—Student Debt, Credit Card Debt, Car Loan Debt, Mortgage Debt. If they’re not lucky enough to have a House with Mortgage Debt, they’re Renting. Rents have gone up so rapidly that if the average Person has an unforeseen $500 Emergency or other Expense, HE CAN'T PAY IT.

It’s said, that the American Bubble Economy rests on Consumption. It’s idiotic because it should rest on Production. I’m not sure the US produces much of anything anymore except Weapons and Government Debt. Most of the Public who “work” basically sit at desks and shuffle papers. Few actively create Real Wealth. On top of that, the United States is vastly over-financialized.

The Bond Market has already collapsed, but it can get a lot worse as Interest Rates head back up to the levels that they were in the early 1980s and beyond. Much lower Stock Prices are in the cards, both because of high Interest Rates and because the Public won’t be consuming such massive quantities of Corporate produce.

The Real Estate Market rests on a foundation of Debt. It can easily go bust as Interest Rates go up. We’re already seeing this with Office buildings. Of course, these Office buildings are financed by Banks who are seeing a lot of defaults on Loans they made. Meanwhile, Bank Capital invested in Bonds has eroded because Bond prices fall in proportion to the degree rise in Interest Rates, which have gone from close to zero to 5% or 6%. If Banks had to mark their Loans and Capital investments to the Market, most would already be bankrupt.

Can the Government paper all these things over by printing yet more Money?! At some point very soon, the US Dollar will lose value very rapidly; it'll be treated like a Hot Potato. That’s how I treat it...

We are moving to a multi-polar world as the US most is in relative decline. It is still the most powerful country in the world and if (when) China overtakes it, it will remain a major power.

I'm a critic of US foreign policy and it's impacts However, they are not the majority reason why the US has declined. It's about demographics and technology. China has about four times America's population and the technological gap between the first and third world has declined massively so population advantage counts for more than it did. Most of the world's population is in Asia and what we call the west punched above it's weight for too long.

America is the Country of the Past, if you need anymore proof of that, Look at the Incompetent Imbeciles who were voted in, supported, enabled, and went along with by the American Public, Taxpayers, and Consumers.

America promised a Bill of Goods amounting to putting Lipstick on a Pig and selling it to someone who didn't know what they were buying. America has to deliver the Goods it promised and it has NO Goods to deliver at all or to anyone for any reason. We have absolutely NOTHING to offer the rest of the World except more Financial Bullying, Economic Warfare and Military Threats. The World Community has rightly wised up to ALL OF THIS. They've certainly wised up to the United States Government's Ponzi Scheme. Joe Biden and Donald Trump are the epitome of that! Time is running out!

Wow. I read your post I think it's obviously time we all just give up and die. The sky is falling, The end is near. All is lost and existence is hopeless. This is basically the end of life on earth as we know it.........as you so eloquently point out. We should just line up and drink poison. Oh woe is us. Goodbye cruel world.

Beer makes us queer and Mickey Mouse is our enemy. Target is turning our children trans. Oh lordie what shall we do??????? If God would only send us a bloated replacement for Jesus who wears orange makeup and dyes his white hair yellow (but he's not gay or trans).......we "might" have hope.

A decline was an inevitable consequence of the ending of the cold war.
Without a common enemy to protect against you lose traditional ally upport for any further forays on foreign soil.
Especially given how those in recent times have gone.

Add to that questionable budgetary wants at a time of public finance cuts and suddenly you find yourself responsible for a huge number of troops; hardware; buildings etc. With nothing for them to do but still require paying and pensioning; healthcare; V.A support and maintenance.

So you make rash statements; acquire a deficit you can't afford just so somebody can pocket a few Bucks in terms of R n D or arms deals etc.

Quite why anyone is surprised by this is down to how the politics of either party has manipulated public thinking over the last twenty years.

Not in our lifetime. Russia is broke. China's economy is in much worse shape than is generally reported. China also has a declining and aging population that's getting older and smaller by the day.

US hegemony is not disappearing

Sad but true. Being honest my doubts of the goodness of Uncle Sam began when I became aware of Vietnam. It has only gotten worse over the years.

Easy for you to say as an American, but plenty of foreign countries don’t want to give up the aid they receive, and plenty of people are clamoring to come here to escape oppressive regimes and failing economies.

It won’t end as quick as people believe but all the signs are there. If you believe Biden and Harris have anything to do with US policy I have a bridge to sell you.

At this point, and as unfair as it may be, it's purely wishful thinking. The misadventures of China and Russia, is putting a dent into it.

Tell that to Palestinian people. Force has sustained US hegemony.

This is the way with all empires. A rise and a fall.

Rather harsh. But not entirely incorrect..😷

Word since wwii at least

So say you.

Where has it been said about the Monopoly money and where has USA gone bankrupt

This is nothing new, Eisenhower's last speech as POTUS warned against the US military industrial complex.