US Debt Cannot Be Inflated Away

 I would say that America is at a tipping point when it comes to government finances.  Just like a consumer who buys more than they have money for ("But I really wanted it!!  In fact I needed it!!) so has the US Government been spending money that they don't have.  The accomplish this by issuing US Gov't Bonds they sell in the open market at auction.  If there aren't enough buyers to buy all the new US Gov't Bonds then the Federal Reserve 'buys' them.

But this is really kind of a Ponzi scheme because the Federal Reserve doesn't have a big stack of money that they earned by hard work that they use to "buy" the bonds.  Nope!  They just take the bonds and put them in their "inventory".  When the interest payments are due on those bonds the US Treasury can technically print all the money they want to pay those interest payments.

But as we have pointed out numerous times, if printing money was all that had to be done by the governments of the world to alleviate poverty, then there would be no poor people on all of planet earth!!  We would just print enough money for EVERYONE!!!

Everyone SHOULD have a nice car!  Here's some money!!  Y'all go out and buy the one you want!!

Everyone SHOULD be free from student debt!  Here's some money!!  Y'all go pay off your student loans!!

Everyone SHOULD have a safe, dry, warm place to live!  Here's some money!!  Y'all go out and buy yourselves a really nice house!!

Everyone SHOULD have access to good health care!  Here's some money!!  Y'all go out and build all the hospitals and clinics you need and staff them with the best doctors!!  Oh year...and FREE HEALTH INSURANCE FOR ALL FOR EVER!!!

Money printing exceeds 2.5 times the combined costs of our recent wars. It’s ginormous. Compounding that problem, the U.S. debt cannot be paid, even in inflated dollars. Serious inflation is inevitable that will crash stock and bond markets, in addition to devaluing the dollar.

Three years ago I wrote Per Capita World Debt Has Surged To More Than $200,000, one of my most-read articles. Many of the comments said money printing is the solution: “Just pay the debt with inflated money.”

In the following, I explore the practicality of settling the debt with newly printed money. We’re poking the inflation bear, but haven’t made a dent in the debt because there’s way too much of it.

Where we are now

The official U.S. debt of $27 trillion is 130% of GDP, but Professor Lawrence Kotlikoff has warned about “off-balance-sheet debt” from Social Security and Medicare that totals another whopping $76 trillion. All-in U.S. debt is $103 trillion, which is 490% of GDP.

Can the government realistically print $100 trillion? In theory, the government can print all it wants, but it needs to stop when all that money causes serious inflation. There is a limit to how much money can be printed, and we’ve reached it.

Money is “printed” when the Treasury issues bonds. If those bonds do not clear the market, the Federal Reserve buys them. Lately the Federal Reserve has been buying most of the Treasury’s new issues.

Money printing and the U.S. debt

Starting with quantitative easing (QE) in 2009, the government has printed $16 trillion through 2022 so far. This has caused inflation to become serious at 8.5% and rising.

Read the whole article here;  Our Debt Cannot Be Inflated Away - Articles - Advisor Perspectives

With all that is going on in the world, wars, looming famines, earthquakes, drought, record flooding, perversion at a new level, 57 genders on Facebook, and now UFO's and 'aliens' being discussed in Congress...we are starting to believe that we are in the VERY end game for the current system on planet earth.

When the US economy collapses, it will drag the rest of the world down with it.

We HOPE and PRAY that the rapture of the church is the final blow and that we are out of here when it does happen.

This, of course, will give rise to the MAN WITH THE PLAN!  Also called the Man of Lawlessness, who will come up with a new financial system for the world.  Of course it will be digital and it will require a mark on your hand or forehead to buy or sell anything.