History has shown us many times what happens to nations that print too much money. It becomes worth les and less...until it becomes worthless.
"But Dennis, debt doesn't matter at all because most of it is owned by American investors, pensions and insurance companies and the rest is owed by the US Govt...so we are really just loaning money to ourselves."
Just see if that makes sense in the form of any other business doing such a thing.
"But Dennis, it's a government so they can just print/issue as much money as they want to pay the interest on as much debt as they want."
And now we go around in a circle because every time they print/issue, the outstanding money we have all saved and invested becomes worth less and less.
It was only ten weeks ago that the U.S. national debt crossed $37 trillion. Now, barely three months later, it's ready to blow past $38 trillion. A trillion dollars in ten weeks -- a number so enormous it's lost all meaning. Yet the most alarming part isn't the number itself. It's that no one seems to care.
A silent madness has taken hold. Politicians shrug, economists rationalize, and the public tunes out. But every empire in history has hit this same wall -- the moment when debt, denial, and delusion finally collide. America is racing toward that wall at full speed, and when it hits, the entire global financial system will feel the tremor.
A trillion here, a trillion there -- until it's too late
The pace of this debt explosion is staggering. A trillion dollars in new borrowing every few weeks -- not to build bridges, not to fund innovation, but mostly to pay for what's already been spent. It's a snake devouring its own tail.
Washington insists the debt "doesn't matter." Some even laugh at the idea of a reckoning. The same Wall Street voices that mocked "deficit hawks" in the 1980s now mock anyone who dares question whether $38 trillion of IOUs can be rolled forever. But the math is merciless. The interest alone now consumes 23% of all tax revenue, and within a decade, that number will likely approach 40%.
At that point, the government won't really govern -- it will simply collect taxes to pay interest. The world's largest economy will become the world's largest debtor-in-perpetuity, borrowing new money just to pay the interest on old money. That's not a plan. That's a countdown.
The day confidence cracks
The real crisis won't begin with numbers -- it will begin with belief. When people, markets, and nations collectively decide that the system no longer works, it collapses overnight.
Every financial crisis is, at its core, a psychological event. Banks run not when they run out of cash, but when people believe they will. The same applies here: when global investors, pension funds, and foreign governments begin to believe America's debt is no longer sustainable -- that's when the cascade begins.
It doesn't require an official default. All it takes is the perception of one. The moment foreign creditors -- who hold nearly $10 trillion in U.S. debt -- start to wonder whether they'll be repaid in real value, they will begin to exit. Japan, China, and others will trim their holdings. Treasury yields will surge. The dollar will shake. The cost of borrowing will skyrocket.
And once that confidence breaks, the United States -- and the world economy it anchors -- will face a reckoning faster than anyone imagines. Markets can unravel in hours. Interest rates can double in days. Entire currencies can lose faith in weeks. The "safe asset" becomes radioactive.
Here; The Coming Reckoning: When America’s Debt House of Cards Finally Falls
We have said it a dozen times in the last few years so will say it again; WE HOPE that the financial system stays as it is until the rapture of the church. In reading the Bible it makes it sound as people will continue buying, selling, eating drinking, planting crops and building houses and buildings until a major event happens and then destruction will come suddenly.
Think about what will happen to the confidence in our current system when millions of people vanish from their mortgages, car payments and debt and the left-behind world starts to figure out that America was the most affected by the vanishings? Confidence will collapse in a second. Everyone will run to liquidate their US Dollars and exchange them for ANYTHING else.
Come Lord Jesus! We can see where this ship is headed and we are looking forward to your return.