The Day of Debt Reckoning is Here

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Let’s face it. If George Soros’ goal was to bring the world-dominating US military and finance to their knees, it seems to me that his party has succeeded.

No matter the cries to keep the US in the driver’s seat for another generation, the fact is that the US is bankrupt. Out of a budget of 5 trillion in revenues plus 2 trillion by debt financing, 1 trillion is now marked as interest on the accumulated debt alone. That is approximately 1/3 of the real budget revenues.

And that is at the current artificially low interest rate of 3.3 percent. But what happens if the interest doubles to a historically normal rate of 5-6 percent? Or 12 to 20 percent, as it did in 1980?

At 37 trillion dollars federal debt alone, the US can hardly hide the incoming train wreck. Because that debt is not against a growing economy and is not against a GDP anywhere near the official numbers of 27 – 28 trilion dollars. Rather the real GDP, excluding the virtual economy, the imaginary financial ghost, the real GDP is somewhere around 20 trillion dollars. And that makes the real federal debt ratio close to 200 percent. And then there is the rest of the debt: state, local and private.

The best the US can do is to lift the sanctions against Russia, close the military open confrontations and hope that nobody is going to notice that it has been defeated. And claim it is all done for the benefit of peace and the benefit of people.

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