The National Debt is at $31.5 Trillion Leaving Us With a Looming Economic Collapse…
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The National Debt is at $31.5 Trillion Leaving Us With a Looming Economic Collapse…

prepperdaves

The Fed is Unsure About How to Handle Inflation, Interest Rates, and a Potential Debt Default.

 We have a lot to cover, so Buckle Up… Grab a Drink… and Let’s Dive Right in…

 The US national debt is the total amount of outstanding borrowing by the US Federal Government accumulated over the nation’s history. As of May 17, 2023, it stands at apx **$31.50 trillion.

Some of you may have concerns about the economy and the skyrocketing debt… and how that will affect you and Slow-growing wages… Surviving paycheck-to-paycheck… Soaring health care costs… The erosion of free markets and spiking hidden costs… The influence of elites and interest groups on government policy…

**All of these are exacerbated by the ever-increasing National Debt…**

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What are some of the tools the elites are using to destroy the economies of Western Civilization…

**The Great Reset**: The World Economic Forum (WEF) and other elites used [as an example] the COVID-19 plandemic as an opportunity to impose a global socialist dictatorship that will abolish private property, individual rights, and national sovereignty.

**The Modern Monetary Theory (MMT)**: This is a theory that claims that governments that issue their own currency can never run out of money or default on their debt, and that they can spend as much as they want without worrying about inflation or taxes. The theory argues that deficits and debt are not a problem, and that the government can create money to fund public services, social programs, etc… The theory is based on a heterodox school of economics that challenges traditional views on fiscal and monetary policy.

So, what happens with a skyrocketing national debt in the wake of these policies… What are some of the consequences of having a high national debt?

**Lower national savings and income**: A high national debt means that the government has to borrow more money from domestic and foreign investors, leaving less funds available for private investment. This reduces the amount of capital that businesses can use to expand and innovate, which lowers the productivity and income of the economy.

**Higher interest payments**: A high national debt increases the demand for money, which raises the interest rates that the government and private borrowers have to pay. The government has to spend more of its revenue on servicing the debt, which leaves less money for other programs and services. Higher interest rates also discourage borrowing and spending by consumers and businesses, which slows down economic growth.

**Decreased ability to respond to problems**: A high national debt limits the government’s fiscal flexibility to deal with unexpected challenges, such as recessions, wars, natural disasters, or pandemics. The government may have to raise taxes or cut spending to maintain its creditworthiness, which could worsen the economic situation. Alternatively, the government may have to borrow more money, which would further increase the debt burden and interest costs.

**Greater risk of a fiscal crisis**: A high national debt increases the likelihood of a fiscal crisis, which occurs when investors lose confidence in the government’s ability or willingness to repay its debt. This could trigger a sudden spike in interest rates, a sharp drop in the value of the currency, or a default on some or all of the debt obligations. A fiscal crisis could have severe consequences for the economy and the financial system, such as a deep recession, a banking collapse, or a loss of access to international markets.

How does the national debt affect you personally?

**It may lower your standard of living**: A high national debt can reduce the economic growth and income of the country, which means that you may have fewer opportunities and resources to improve your well-being. A high national debt can also lead to higher taxes or lower spending on public services and programs that benefit you, such as education, health care, infrastructure, and social security.

**It may increase your borrowing costs**: A high national debt can raise the interest rates that the government and private borrowers have to pay, which means that you may have to pay more for mortgages, car loans, student loans, credit cards, and other forms of debt. Higher interest rates can also reduce the value of your savings and investments.

**It may expose you to financial risks**: A high national debt can make the economy more vulnerable to shocks and crises, such as recessions, inflation, currency devaluation, or default. These events can have negative effects on your income, employment, prices, and financial stability.

How can you protect yourself from the effects of the national debt?

There is no foolproof way to protect yourself from the effects of the national debt, but you can take some steps to reduce your exposure and increase your resilience. Some possible actions are:

**Save and invest wisely**: Having a healthy emergency fund and a diversified portfolio can help you cope with unexpected expenses and income shocks. You can also look for investments that offer protection against inflation, such as Treasury inflation-protected securities (TIPS), real estate investment trusts (REITs), or commodities. You can also consider investing in foreign assets that may benefit from a weaker dollar.

**Manage your debt**: Having too much debt can make you more vulnerable to higher interest rates and lower income. You can try to pay off your high-interest debt as soon as possible, and avoid taking on new debt that you cannot afford. You can also look for ways to refinance your existing debt at lower rates or longer terms, if possible.

**Increase your income and skills**: Having a higher and more stable income can help you deal with higher taxes and lower spending on public services and programs. You can look for ways to increase your income, such as asking for a raise, finding a side hustle, or starting a business. You can also invest in your education and skills, which can make you more competitive and adaptable in the labor market.

Now onto some alternative news…

Charting the Rise of America’s Debt Ceiling (visualcapitalist.com)

Von Greyerz: A Disorderly Reset With Gold Revalued By Multiples (zerohedge.com)

US ‘Has to Default’ on Something If Debt Ceiling Isn’t Raised Before Deadline: Yellen (theepochtimes.com)

7 doomsday scenarios if the U.S. crashes through the debt ceiling (yahoo.com)

Why the Government Debt Crisis Will Blow up before we Even Get to Default (https_thegreatrecession.info)

References for the section above.

 

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