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!

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Broache73 · 51-55, F

United States Government’s Debt Disaster of $35+ Trillion of Colossal Debt. Skyrocketing Government Spending, insufficient Tax Revenues, and deepening Deficits. The US Treasury has run out of other People's Money to borrow and steal.

Interest payments doubled since 2020, and pushed the Government off the Fiscal Cliff like Wile E. Coyote. The Federal Reserve’s 2023 Rate hikes and 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. Tax Revenues aren't keeping up. Government expenditures spiked during the 2020 Crisis, while Tax receipts increased by about $600 Billion. Do The Math!

The Government is forced to borrow to make up the difference, What do we call this, Ladies and Gentlemen?! Survey Says! YES, WE CALL IT, DEBT! Total Public Debt over $32 Trillion, over 180% percent of Gross Domestic Product (GDP), excluding Government Spending and Transfer Payments.

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.

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

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.

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 from Factors Affecting Reserve Balances, Federal Reserve Statistical Release H.4.1 (Board of Governors of the Federal Reserve).

Foreign Governments (China and Japan) reduced their purchases of Treasurys, leaving the US with a smaller Customer Base for its Debt.

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.

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 will mature? This is a 3rd of 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. We'll have 1970s-style Stagflation, the Federal Reserve will be forced to choose between dealing with unpopular Inflation and unpopular Unemployment. Treasury auctions floundering, resulting in 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.

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.

Diotrephes · 70-79, M

@Broache73 OK, list 10 things you would do to solve the national financial problem.
1.
2.
3.
4.
5.
6.
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9.
10.

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

whowasthatmaskedman · 70-79, M

@Diotrephes This isnt what I would do. But here is what will ultimately happen.
Plan A.
1.Establish budgets year on your thatdont require more overseas borrowings.
2. Raise the tax levels to match these budgets.
3. Start to pay down debt by encouraging export sales of goods and services and the sale of national assets to overseas companies or governments. (Do you really need all those Supercarriers, or Alaska for that matter?)
Plan B.
Start WW3 on a nuclear level so that there isnt enough left for anyone to worry about who owes who what. (And I bet somewhere in the White House, someone has suggested that sometime)😷

Broache73 · 51-55, F

@Diotrephes

I'd start with the Departments, I'd abolish Commerce, Interior, Energy, Education, Housing, Homeland Security, and the Alphabet Soup Departments too...

I'd slash Spending by at least 50% by closing ALL US Military Bases (using BRAC Base Realigment and Closure) around the World Community discharging them to the International Red Cross. Bringing ALL our Sons and Daughters home from around the World Community and put them guarding OUR BORDERS...

I'd rid ourselves of the utterly failed War on Poverty, War on Drugs, War on Crime, and the Stupidity Squared of the Global War on Terrorism...

I'd get rid of ALL FORMS of Foreign Aid, no Money from Piss Poor People in this Country to Rich People in Piss Poor Countries...

I'd rid the Government of FEMA and other forms of those ungodly Programs that steal Money from one group to give to another then skim off the top to give to their Corporate Paymasters like during Hurricane Katrina...

Most importantly, I'd rid the United States of the Pyramid Schemes of the Criminal Organizations known as the Internal Revenue Service and the US Federal Reserve Bank. Once I've expunged these 2 New York Mafia type Agencies, Everything else would take care of themselves especially then the American Public, Taxpayers, and Consumers would no longer have the burden of subsidizing the Bernie Madoff style Ponzi Scheme of the Entitlement System, and the Welfare Warfare State would go to the Political Equivalent of Jurassic Park.

Diotrephes · 70-79, M

@Broache73 Well, you definitely have a plan. I wonder how disastrous it will be for the country?

Diotrephes · 70-79, M

@whowasthatmaskedman I wonder how much the White House and the Capitol building will sell for? And imagine if Saudi Arabia bought most of the water supply and Iran bought a lot of the nukes.

whowasthatmaskedman · 70-79, M

@Diotrephes Iran will get a better deal from the Russians. And Buy desalination technology from the Chinese..But there will be Arab Money in banks, and movie studios and golf courses of course.😷

LeopoldBloom · M

@Diotrephes Just put “complain” after every number on the list.

LeopoldBloom · M

@Broache73 So your “solution” is to plunge the world into a depression that would make the one in the 30s look like a blip. All I can say is I’m glad you’re just a crank on the internet and not in Congress.

Broache73 · 51-55, F

My plan mitigates the Horror the American Public, Taxpayers, and Consumers of the Economic and Financial Crash, that'll surely befall the United States. I've already been preparing and still preparing for. The US Dollar is only worth 4 cents compared to 1913 when the Federal Reserve Bank took charge of US Dollar.

Once the US Dollar no longer maintains its value, Who cares where you put the money?! No one's going to have Healthcare, Retirement, Education, etc. that can actually be paid for, of course then we'll have Havoc and Chaos that's worse than the 1930s Depression. We're already in the early stage of the Greater Depression, the Political Indentured Servants on Capitol Hill and State Capitols aren't about to be honest about or level with the American Voters. I honestly fear for the American Voters who put their trust and faith in the ungodly Bernie Madoff style Pyramid Scheme that Woolly Mammoth without the charm aka US Government ensnared them with. A Foreign Minister rightly exposed the US Dollar as nothing more than a Candy Wrapper without the Candy, Too bad!

I had the good sense to understand to study the Ponzi Scheme and got out, and mitigated the damage to myself! I've hedged my bets and got my Dividends. Hopefully, Others will recognize the Black Hole that is the American Welfare/Warfare State, and protect themselves!

whowasthatmaskedman · 70-79, M

@Broache73 Let me start by saying I accept your general premise of the fall of the $US. However I think you slightl overplayed one thing. The massive inflation of a devalued currency will apply only to imported goods and serices. It is possible to continue providing local produce (with no imported content) at reasonable prices. Unless of course manufacturers try to profit from the situation as they have in the past. This would mean much stronger price regulation from the government of course..😷

jehova · 31-35, M

@Diotrephes 1. Legalize hemp as a means to produce hemp gasoline. Thc is a hydrocarbon and was used to produce 300 barrells an acre until it became prohibitted in 1937 (the Marihuana Tax Act of 1938).
2. Encourage domestic investment. Prioritize domestic construction agriculture industry etc.
3. Incentivize citizens to patronize famers markets.
4. Lower the drinking age to 18 or 19 (we need the tax revenue.) While encouraging public transit (to reduce drinking and driving)
5. Eliminate\drastically reduce corporate tax loopholes. Establish a "flat tax on incone over a certain threshold.
6. Set a maximum term limit for congress, (i prefer age limit, but thats unrealistic; as of now).
7. Legalize all substances (we need the tax revenue) also it would reduce overdose deaths and stigmatization).
8. Pull our military out of foreign conflicts (pissing the world off while spending money hasnt and isnt working) support the troops bring them home!
9. Invest in domestic programs instead of only the military. Better education will improve everything else (innovation efficiency technology will improve).
10 . Legalize prostitution (we need the revenue) it will reduce scammin online. Nearly eliminate std transmission and sexual violence. Reduce overpopulation. Eliminate lonliness and depression. (Increase satisfaction with life, while drastically reducing suicide and online scamming.
America needs to grow up!
11. Desalinate the ocean en masse to replenish the aquifers.
12. Decrease our reliance on corn (especially corn syrup). It is literally toxic and very water intensive.

exchrist · 31-35

@jehova jehova for president.