Update
Only logged in members can reply and interact with the post.
Join SimilarWorlds for FREE »

America's Real Crash and Bankruptcy

US Hegemony is done with...

The World Community can no longer be bullied or controlled by the Corporate and Donor Occupied Territory aka Washington, DC anymore. The US Government is Financially, Economically, Militarily, and Morally Bankrupt. The US Government lives entirely on printed Phony Monopoly Money from the Federal Reserve.

The US Military is unsustainable, unaffordable, and unable to recruit new Soldiers, Sailors Airmen and Marines. Boneheaded Wars for Oil, Wars of Aggression, Wars of Attrition and Wars of Subsidization fomented for Corporate Interests has hallowed it out. Those who joined the Military are disgusted by the Woke Memes and the US Government who promoted havoc and chaos with 800+ Military Bases as provocations and tripwires. Military Spending is Corporate Welfare for the “Defense” Corporations, building Weapons suited for the Wars of the dustbins of History.


I expect 2025 to be a profound "Come to Jesus" moment for the American Public, Taxpayers, and Consumers who couldn't be bothered to educate themselves on Economics, Math, and US History. While nothing is certain, new paradigms in Finance, Geopolitics, and Energy will be crucial for Investors.

Of particular importance is the US Government's Economic and Financial precarity, which is rapidly deteriorating. American Taxpayers and Consumers are complacent, yet they know about the ticking Time Bomb of Debt. Nothing has happened YET, however, the paradigm shift will be very rapid, shattering Conventional, Mental, and Financial models for the Debt Bomb💣.

In 2024, A crucial tipping point was when the Interest expense on the Debt exceeded the Military Budget. It's exceeding Entitlements becoming the BIGGEST Line Item in History.


Historian Niall Ferguson:
“Any great Power that spends more on Debt Service (Interest payments on the National Debt) than on Defense will not stay great for very long". The US Government will be forced to:

• Cut Military Spending amid the most chaotic Geopolitical period since WW2.

• Default on promises of Social Security, Medicare, Medicaid, Veterans’ Benefits, Government Pensions, and Welfare generally.

The United States Government can't afford Entitlement and Military Spending since both are growing exponentially, I've seen the numbers.

Baby Boomers—22% of the Population—have Retired. Telling them the truth about the Entitlement Pyramid Scheme are met with misdirected Hostility and indignation.

Former Secretary of Defense Robert Gates recently told us: “Barely staying even with Inflation or worse is wholly inadequate. Significant additional resources for Defense are necessary and urgent.” That statement by itself says it all.

In short, efforts to cut US Expenditures are meaningless unless the US Government takes the chainsaw to Entitlements, Military, and Welfare Spending while cutting away at the Interest on the National Debt. The US will be forced—at a Minimum— to kill the Welfare/Warfare State and liquidate the National Debt.

It'll be an inevitable shock of the rejection of the Dollar as the World's Reserve Currency, an Economic Collapse and Financial Crash for the inept American Public, Taxpayers, and Consumers to kick the obsessive addiction to the Welfare/Warfare State.


The facts speak for themselves;
Elon Musk and DOGE are set up for failure. US Expenditures have nowhere to go but way up.

I'm overly confident that the US Government will try to have its cake and eat it too by Spending for Military and Domestic Obligations via Currency Debasement (Printing Phony Monopoly Money).

It’s a self-perpetuating Stupidity Squared they can't escape. It’s a runaway Train with no brakes.

“We owe it to ourselves.”
“Deficits don’t matter.”
“Treasuries are Risk-Free return.”
“The National Debt is sustainable as long as we can print money.”
“The US will never Default.”
"You're Heartless!"
These delusions that Investors believed have long since come to an end.

I can hardly wait for the very harsh Reality Check the American Public and Taxpayers who believe this nonsense will get. I myself expect the rate of Currency Debasement will far exceed the nominal yield that US Treasuries and Bonds will offer.

Taxpayers will rightly look for alternatives for their Savings to preserve purchasing power. Taxpayers, Companies, and Sovereign Countries are parking their Savings in Commodities. The significant gains are precious metals. Those not prepared for the bottom dropping out for the World's Reserve Currency Status of the US Dollar, will find the Piper at their Doors demanding to be paid!
This page is a permanent link to the reply below and its nested replies. See all post replies »
Broache73 · 51-55, F
The US Bubble Economy continues to hide behind surging Debt and Government Spending.

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...

According to the latest 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 increase over 2022.

A 2024 Annual Deficit of $2 Trillion would make 2024's Deficit the 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 will soon crash. After reaching $33.1 Trillion at the end of the third quarter, the total Debt reached $34 Trillion. The US adds more than $7 Trillion of Debt since 2020. It's noted 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.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 Treasurys surged 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 including the Covid-related panic Spending. Social Security increased 40 percent, and Medicare increased 30%.

Congress will be forced to make very unpopular Spending decisions on the Military and Entitlements. 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% of it goes to Interest payments, payments on old Debts, lost Warfare, failed Schools, retired Government Employees, and countless Allen Stanford style Pyramid Schemes.

We're already in a Debt spiral as the Central Bank prints Dollars attempting to pay Debts avoiding the Fiscal Austerity disaster.

The Silver lining is it becomes obvious that interest payments are fleecing today's Wage Earners, it'll make sense to repudiate the Debt. The idea that the Government has some sort of moral obligation to pay its Debts has always been nonsense. Interest payments paid by Tax Dollars are nothing more than a forced Wealth transfer from Taxpayers to Bondholders. 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 an INVOLUNTARY PARTY to the Agreement. Freeing US Taxpayers from these obligations to begin with is Moral.

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.
This message was deleted by the author of the main post.