The size of the US national debt for 2020 is commensurate with the entire economy of the country

2024 Author: Seth Attwood | [email protected]. Last modified: 2023-12-16 15:55

You will never hear this phrase: "Gentlemen, the national debt has been paid." This phrase was spoken only once in Washington, when a senator announced that the US government was officially out of debt. This happened on January 8, 1835, when the government finally paid off all the debts accumulated since the formation of the United States. But the US will no longer be able to free itself from debt. It took 174 years for our debt to reach a mind-boggling $ 11 trillion by 2009. dollars.

And the next 11 trillion. dollars were added to the debt in just 10 years. Today, the national debt exceeds the size of the entire US economy - 22 trillion. dollars. Debt reached $ 1 trillion. dollars for as much as 147 years. And now the US is adding $ 1 trillion. dollars to your debt in just 365 days. But why is our debt growing so rapidly? Because we live in a wonderful time! Our economy has been growing for a decade. Stock market

pumped up to an all-time high. Nearly every asset category is bloated with wealth. We are even seeing record tax revenues.

However, regular spending of $ 1 trillion. dollars is more than the government collects. The thought of financial restraint never crossed the minds of politicians and legislators. This is complete insanity. In fact, back in 2009, people talked about the problem of national debt, and then it was half as much as it is now. An astonishing 2009 article in Forbes magazine predicted that US debt would reach $ 14 trillion by 2019. dollars.

Less than 50% increase, but the author of that article was extremely excited. And he did the right thing. And now we have to worry even more.

At that time, the federal government spent 7, 7% of its budget - about $ 162 billion a year on paying interest on the national debt. This year it spent 15.4% of its budget on it - 3.4 trillion. dollars. Politicians don't worry about the budget balance and debt payments. Imagine what it would be like if you paid off your credit card debt as little as possible, spending 33% more than you earn each year. In the end, your card will be blocked. But the US government can raise the limit on its credit card - constantly raising the national debt ceiling.

It can ignore economic reality for much longer than we can. But rest assured, economic laws are the same for everyone. Remember that these are good times, interest rates are low, and everyone continues to believe that the US government is a good borrower. But imagine a recession eats up most of the tax revenue, or the US gets involved in even bigger and more expensive wars. Nothing is impossible about that, is it? It is impossible to predict what kind of catastrophe such a huge debt will lead, even without any major events. Huge debts led to the ruin and collapse of the Roman Empire and the Weimar Republic. This does not mean that the same will happen with the United States. But there is no doubt that countries with healthy finances are doing better.

This is the universal law of prosperity: Earn more than you spend. And if politicians haven't thought about it for several decades, it's time to prepare for the chaos that could befall our society. Reasonable people don't ignore such things. There are several ways to save yourself from the consequences of rampant debt. One of the most reliable ways is to transfer savings into precious metals such as gold and silver. It has been true for several millennia, and most likely it will continue to be so: these metals always remain in value. It also makes sense to transfer some of your assets outside the United States.

You should also get a second passport so that no country can dictate where you live, work and travel. Overseas property provides you with the opportunity to leave here in the event of a bad scenario. Foreign bank accounts will save your money from the US government and court. If there is a crisis, you can survive, and if nothing happens, you have nothing to lose. There is nothing wrong with developing a personal protection strategy in the event of economic chaos.