Alarming Signals Pointing to the Collapse of US Dollar

 Here is just one more prophetic headline that speaks of the US Dollar collapsing.  As the book of Daniel says, "the writing is on the wall."  Of course we know this is going to happen but only God knows the timing.

As America's debt grows unchecked, the question isn't so much whether the U.S. dollar will falter but when. Seven key indicators signal trouble, painting a picture that suggests the dollar's days as the world's primary currency may be numbered. 

And yet, the troubling debt spiral unfolding before our eyes receives little more than passing concern from leaders and policy shapers. The consequences of ignoring these signals could be catastrophic.

1. Federal Budget Deficits - A Debt-Fueled Spiral

One of the clearest signs of economic instability is the massive federal budget deficit. Despite optimistic projections that rely on implausibly smooth conditions--no wars, recessions, or emergencies--U.S. debt is projected to grow by $22 trillion over the next decade. With each economic shock or policy shift, these optimistic estimates become even less realistic. The American government, it seems, has become so comfortable borrowing that repaying this debt is an afterthought.

Such soaring deficits can destabilize the dollar by making it less attractive to foreign investors, especially as interest on this debt crowds out critical public spending. The most disturbing aspect of these projections is the near certainty that deficits will only accelerate over time, locking the U.S. into a vicious cycle of borrowing.

2. The Ballooning Federal Debt

Federal debt now stands at $35 trillion, exceeding 123% of the nation's GDP, a staggering burden for any economy. The government's addiction to spending has become so extreme that, contrary to logic, government expenditure is counted as a "positive" in GDP. 

In reality, government spending on interest payments and debt-financed projects only deepens America's financial vulnerability. The real economy supporting the debt--the economy of workers, businesses, and production--is already strained under the weight of this spending spree. And as this cycle continues, the true strength of the economy, relative to debt, is much weaker than headline figures suggest.

3. The Exploding Federal Interest Expense

The cost of servicing America's debt is surpassing $1 trillion annually, exceeding all other expenditures, including national defense. This reality should be a wake-up call: the U.S. is heading toward a future in which its largest expenditure isn't education, health, or infrastructure--it's debt interest. Even more alarming, the government is on the brink of spending more on debt than on Social Security, a pillar of American society.

When interest payments alone begin to dwarf federal spending on social programs, the consequences can be extreme. The government may find itself in a fiscal bind, with fewer funds for essential programs and a growing need to placate creditors. This can create a perception of financial instability, further weakening the dollar's appeal.

4. The Federal Funds Rate and the Struggle with Inflation

In a desperate attempt to curb inflation in 2022, the Federal Reserve embarked on one of its steepest rate-hiking cycles in recent history, moving from near-zero rates to over 5% in just 18 months. But this monetary medicine came with consequences: as rates rose, the government's interest burden exploded, forcing the Fed back to rate cuts. The inability to sustain higher rates, even when inflation persists, suggests that the U.S. economy is no longer resilient enough to weather the fallout from responsible monetary policy.

This cycle of low rates followed by frantic hikes and cuts only makes inflation harder to control, creating a volatile environment that could further erode confidence in the dollar.

5. Money Supply and Currency Debasement

The Fed's tools of "currency debasement and gaslighting," as critics would say, are thinly veiled attempts to inflate the money supply in a bid to control debt interest costs. When money is created "out of thin air" to buy up government bonds, inflation inevitably follows, eroding purchasing power and widening inequality. The result is a world where many Americans struggle to stay afloat financially, watching as their real wealth erodes amid skyrocketing prices and stagnant wages.

Those whose wealth hasn't grown by at least 37% since 2020 may already be falling behind, losing ground in an economy that penalizes prudent saving and rewards speculative investment.

Here;  The Alarming Signals Pointing To A Potential Collapse Of The U.S. Dollar

We've said it 100 times over the past 15 years, EVERY CURRENCY based on faith and confidence fails.  History shows us that.  The government that is strong enough to convince it's citizens that faith and confidence is all that's needed will one day not be strong enough to keep up that faith and confidence.  

When politicians realize they can pay for things by printing/borrowing money at very low interest rates, the temptation to keep doing that over and over again ultimately leads us into a debt spiral.  Sadly, we seem to be there.  The interest on our debt will now be bigger than all other government spending.  And when investors start to realize that they will demand higher interest rates in order to stay invested in those government bonds.  And if the government doesn't have enough money to pay 4% on $35 trillion in debt just imagine how fast the cookie crumbles if they are forced to pay 8% then 9% then 10%.

We sincerely hope that Jesus is coming soon so that we don't have to be around here to witness this collapse...because it will be pretty scary and really painful.