Anthony Migchels - US Debt Has Reached Crisis Proportions
November 3, 2024
(Left: The feeble Joe Biden will be remembered, unjustly, as the man who broke the Dollar, Washington's solvability, and the 'Fiat' System.)
The US Government will pay $1.2 Trillion in interest on the debt in 2024. Double of what they paid in 2023. And it keeps escalating, as they continue to roll over debt for higher interest rates and must borrow $2,5 Trillion per year to keep up this deficit spending. If their financing needs next year are $5 Trillion, they will be paying $1,5 Trillion next year, almost a third of Government income. It's hard to see how they will finance WW3.
The US Government's Finances Are Now In An Acute Crisis
by Anthony Migchels
(abridged by henrymakow.com)
America's finances are now critical. The raw numbers speak for themselves, and cannot continue. It is very easy to predict that strong measures will soon be announced, but these will come with severe consequences, both domestic and geopolitical.
Of course many will say 'we've been saying that for decades now', but once we show the numbers, everything will become clear. There will be no more kicking the can down the road. Especially, since the now imminent deflationary disaster in 'the markets' will force the hand of all players involved on several levels.
Trump will be wheeled in again soon now, and he will also have Congress on his side, if things go as can be expected at the moment, providing him with the leeway to do something drastic. The first one hundred days of a presidency are typically used for settling the main matters, as the momentum is then still strong and the administration is in the honeymoon phase. It's hard to see how this would not coincide with the Crash we have been expecting since Powell started raising rates, and which we called as the Fed popping the Debt Bubble, a prediction we are quite confident will be proven correct not long from now.
This means that reorganizing Government finances and austerity will coincide with the coming changes in the Financial System.
The Numbers
US Debt now stands at $36 Trillion. That's up $10 Trillion from where Trump, who himself added $7 Trillion, more than a third, left it. In less than the last twelve months the debt has increased $4 Trillion. Two weeks ago, the debt grew with $500 billion in two weeks. GDP is $28 Trillion, so the debt will hit 150% in just years.
Government income is $5 Trillion per year. Biden is spending close to $7,5 Trillion. Which means the deficit is well over 8%. But when the debt grows with $4 Trillion, that's almost 15% of GDP, so that's the unofficial deficit..
But even an official deficit of over 8% makes the US an absolute basket case: Even Italy and Greece look like choir boys compared to the US now.
However, the deciding number is this: the Government will pay $1,2 Trillion in interest over the debt in 2024. Double of what they paid in 2023. And it keeps escalating, as they continue to roll over debt for higher interest rates and must borrow $2,5 Trillion per year to keep up this deficit spending. If their financing needs next year are $5 Trillion, they will be paying $1,5 Trillion next year, almost a third of Government income.
The historic rule of thumb is that a State will disintegrate when interest payments reach 25% of the Government's income. So we have reached that point for the US.
Another grave problem is: with interest payments now at $1.2 T per year, and with so called mandatory spending (which does not include interest payments) at $3,8 Trillion, ALL discretionary spending by the Government, that is to say all spending that can theoretically legally be done away with, is deficit spending. After all: $1,2 + $3,8 = $5 Trillion and that's total Government income. All the Government's income is now going to spending over which it has no real control and which must be paid. So getting rid of the deficit leaves the Government literally not a dime for discretionary spending.
And the entire 'defense'/Empire budget falls under the discretionary part. So go figure.
Conclusion
With interest payments now consuming a full quarter of the Government's income and rising steeply, a deficit north of 8%, heading for 10%, the Government's financing requirements now so large that even the Bond Market can't really handle it, and all the Government's income consumed by Usury plus mandatory spending, it is simply unavoidable that things will be forced to change in the very short term.
There is no more room for further can kicking. The numbers I just mentioned are simply absolutely murderous and hold the Government in an iron grip, forcing the hand of both the Government itself, and those financing them.
So there will be a deflationary double whammy: not only will the New Gold Standard force the end of debt and money growth, relinquishing the economy to the deflationary forces intrinsic in a usurious money supply, fierce Government austerity will strongly aggravate the situation.
And soon these two very strong deflationary factors will be eclipsed by the chain reaction of defaults in the financial system as a result of unpayable debt that will destroy trillions upon trillions of Dollars.
This is the hyper deflation that the Greatest Depression will be.
Related:
'Fiat' And The Treasuries Are Dead! Long Live The New Gold Standard!
The Fed Is Pulling The Plug On The Debt Bubble. 'Cyber Attacks', Followed By The Greatest Depression Are Coming
Absolutely Shocking Predictions By ChatGPT About The Coming Financial Collapse
The Petrodollar's Swan Song And The Rise Of The New Gold Standard
The New Gold Standard IS The Great Reset!
The Return Of The Financial Crisis September 2019
First Comment by "Insider"
The US Government will pay $1.2 Trillion in interest on the debt in 2024.
{ LMFAO, That's the number they tell the people !!!!! }
{ In reality. the government spends 10 times the amount it takes in !!!!! }
{ So if the people want the truth, add a zero to the 1.2 trillion, Yes folks that's 12 trillion !!!!! }
{ Your government sold all your asses decades ago, you are all bought and owned by THE FAMILY, but you'll just don't know it !!!!! }
{ Now, here comes a sadder truth, a great amount were bagged and tagged, and all because of a FAKE Pandemic !!!!! }
Roger said (November 3, 2024):
Migchels is a good writer, but he has no understanding of the real national debt. it is way north of $200 trillion now due to the unfunded liabilities. THAT IS THE REAL DEBT.
that is like $600,000 each for every baby, child, and adult in america. a family of four owes $2.4 million.
all debts get paid all the time every time- either by the buyer or the seller. there is no such thing as an "unpaid debt".
this $200 trillion+ will be paid by the worst depression by far the world has ever seen.
got silver? got gold? got guns?