If you’re going to go out, you might as well go out in style. Our national debt stood at $31,467,639,287,894.39 at the start of June. It is now worth $33,476,530,987,617.43. That implies that in just three months, we have added nearly two trillion dollars to the national debt.
We are in debt trouble. Photo by Richelleg/canva
It is the largest single debt in our planet’s history, and it will never be paid off. Our debt spiral has reached its terminal point, and the only thing we can do now is prolong the suffering. We destroyed the beautiful future that our children and grandchildren were meant to have a long time ago, so what we do now doesn’t really matter.
What our leaders are doing to us is a crime against humanity.
And I’m not only referring to the United States. Politicians all around the world have been on the largest debt binge in human history, and for many years, it appeared like they were getting away with it.
However, interest rates are rising, and the bond markets are in chaos. The following is from CNN:
“A global slump in government bonds has driven up the cost of some nations’ debt to levels not seen in more than a decade.” That’s bad news not only for governments in debt but also for millions of mortgage borrowers, stock investors, and businesses.”
The sell-off has been spurred by investor predictions that the world’s main central banks will keep interest rates “higher for longer” in order to achieve their inflation targets.
Governments issue bonds to raise money for public investments and services. A bond allows you to borrow money from investors for a specified period of time in exchange for the commitment to make regular interest payments.
Time to start prepping Photo by Richelleg/canva
Bond rates have reached very concerning levels in recent weeks.
If this trend continues, governments all around the world will face massive issues.
When official interest rates rise, investors’ expectations for bond returns, known as yields, rise as well.” This offers an incentive for investors to sell their existing bonds and purchase newly issued ones with greater interest payments. Bond prices fall when bonds are sold. In other words, as rates rise, bond prices fall.
And yields have undoubtedly been rising: the 30-year US government bond yield, often known as Treasury bonds, reached 5% on Tuesday for the first time since 2007. This week, the yield on 30-year government bonds in the United Kingdom surpassed 5%, the highest level in more than two decades.
German long-term bond yields have returned to levels last seen on the eve of the European debt crisis in 2011. Yields on Italy’s 10-year bonds reached 5% on Wednesday, the highest level since 2012, when the country was in the grip of a financial crisis.
There is currently no way out of this dilemma. We would have had a far different result if we had done it responsibly from the start.
But our fate is pretty well sealed at this point. Of course, our lawmakers had no intention of changing their minds. In reality, they keep blowing money like drunken sailors.
What’s even more aggravating is that they’re not even spending the money efficiently.
And in many cases, it is being squandered on useless activities…
Federal officials have been chastised for spending $3.3 billion on new office furniture during the pandemic, when almost all employees worked from home. “The US government’s excessive spending habits included spending nearly $250,000 on solar-powered picnic tables for the CDC and $120,000 on luxury Ethan Allen leather chairs.
Cut your credit cards Photo by Richelleg/canva
In these frightening times of a failed banking system, Robert Kiyosaki, acclaimed author of the outstanding personal finance book “Rich Dad, Poor Dad,” presented his thoughts on how to decentralize from fiat currency. According to him, the dollar has been losing purchasing power and will soon be worth less than “toilet paper.”
During a recent interview on the episode of “Decentralize.TV” hosted by Mike Adams and Todd Pitner, Kiyosaki discussed how a lack of financial education in the United States blinds the people and even President Joe Biden’s administration to the current economic slowdown. “They just lifted the debt ceiling again… Our debt climbed by $1.8 trillion as a result of our schools’ lack of financial education and knowledge of credit ratings. Fitch Ratings downgraded the United States’ debt from AAA to AA-plus. “We’re on a collision course with disaster.”
We are truly on a “collision course” with tragedy, but most Americans are unaware of this. Most Americans appear to believe that there will be no severe consequences for all of our borrowing and spending.
Most Americans do not grasp basic economics.
When your debt grows considerably quicker than your income for an extended period of time, it will always cause pain.
Each and every time.
If you’ve ever found yourself drowning in debt, you understand precisely what I mean. Our entire country is now drowning in debt, and our leaders are adding hundreds of billions of dollars to that debt every month.
Prepare your family now Photo by Richelleg/canva
Everyone should realize that this is not going to end nicely.
For the time being, our leaders are doing everything they can to keep the debt spiral humming, but the clock is ticking and time is running out.
Written by Rootbound Homestead for NewsBreak ~ October 6, 2023
