The United States is addicted to cheap money and credit. Everyone knows it. No one ever discusses repaying the build up debt. But this will have to change. The sooner the better.
I’ll make it even worse. In the past 10 years, the USA added over a trillion in debt a year. This is an enormous amount which should be repaid by the children and grandchildren of the ruling elite. For this are both parties to blame.
The USA government spends, annual, 371 billion a year on interest. keep this in mind when we see a new shutdown. This money could have been given back to the taxpayer or spending on solving the problems. Just imagine that this amount of money would be used on fixing the USA infrastructure. The problem would be solved in a matter of months. Actual most problems in the USA could be solved at once.
So with no decline in borrowing and increasing interest rates, we will see the USA government interest payments only to go up. So even more money is going to be wasted.
Unfortunately, politicians prefer to get things to look better in the short term. This is what politicians love to do. This due to the fact that they are facing re-election.
It is clear that this cycle is unsustainable. Something has to change. but what? When will the USA government start living within its means? What would happen when the Dollar collapses or no one is interested in the worthless USA government bonds? How will soldiers be paid when fighting overseas or simply government workers being paid? Just think about how the media took the stories of unpaid government workers. Now there is no chance of any payment getting in.
When it all collapses we will see plenty of media attention and blame. But the real problem is that no one prepares for this. People should start making a second income and put money into Gold.