USA Now Spends More on Interest Payments Than Defense

 We all know that something has to change.  The government simply can't keep borrowing money.  If they do, one day their interest payments will be their biggest obligation and they won't have any money for all the other items in their budget.  Massive tax increases and more borrowing will be their only option.  Printing more money will only compound the out of control situation.

2024 was a turning point for this fiasco because our interest payments exceeded our defense spending.

While nothing is certain, I think we can count on radical changes in 2025.

Navigating new paradigms in finance, geopolitics, and energy will be crucial for investors.

A primary focus in my research is to put together the pieces to reveal the true Big Picture and get positioned in unstoppable investment trends ahead of the crowd with smart speculations.

I’m more interested in getting the Big Picture right than gambling on short-term trades in rigged markets.

Understanding the Big Picture has always been essential. But given the scale of changes looming, I can’t think of another year in living memory where it will be more critical than in 2025.

Of particular importance is the US governments financial situation, which has been gradually deteriorating for decades. It’s not surprising that many people are complacent. They’ve long heard about the debt problem, and nothing has happened.

However, I think there’s an excellent chance that 2025 could be the year we see a paradigm shift, shattering conventional mental and financial models for the federal debt.

A crucial tipping point was reached in 2024 when the interest expense on the federal debt exceeded the defense budget for the first time. It’s on track to exceed Social Security and become the BIGGEST item in the federal budget.

Historian Niall Ferguson summed it up nicely:

“Any great power that spends more on debt service (interest payments on the national debt) than on defense will not stay great for very long.

True of Habsburg Spain, true of ancien régime France, true of the Ottoman Empire, true of the British Empire, this law is about to be put to the test by the US beginning this very year.”

Here;  2025: The Year The Federal Debt Bubble Bursts | ZeroHedge

We have been blogging about this financial debt bomb for over a decade.  It just keeps getting worse.  But just like a family that overspends on car payments, mortgages, food, vacations and daily expenses, they might be able to go on for one more day using a credit card, but one day they will be out of options and when that day comes everything comes to a halt.  

When is that day for USA?  No one has any idea.  But we do know that the rapture of the church will certainly be a time when FAITH AND CONFIDENCE in the US financial system will dry up.