Guest Post by Antonius Aquinas
While it made some headlines in the financial press, neither policy makers nor the two presumptive presidential nominees have paid much attention to the fact that the U.S. is adding a mind-boggling $1 trillion to the national debt every 100 days. This amounts to around $3.6 trillion annually.
As law makers remain willfully ignorant of the financial elephant in the room, it is most likely that the only way that the debt will be addressed is through a monetary crisis which will involve the status of the dollar as the world’s reserve currency. Such a scenario would then force authorities to take action.
As law makers remain willfully ignorant of the financial elephant in the room, it is most likely that the only way that the debt will be addressed is through a monetary crisis which will involve the status of the dollar as the world’s reserve currency. Such a scenario would then force authorities to take action.
As if there needed to be more evidence of how impervious Congress and the Biden Administration are to the burgeoning debt spiral, the House and Senate passed two stop-gap funding packages to avoid a government shut down on March 22, 2024. One Senator called it “a pork fest of epic proportions.”*
Despite the ominous prognostications of a dollar collapse by financial doomsayers, the Greenback has remained the best of all competing currencies. Yet, this time could be different, since interest rates – which have been artificially suppressed by the Federal Reserve (Fed) – have risen, making servicing of the national debt more expensive as Moody’s Investors Service noted: “In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues Moody’s expects that the US’ fiscal deficits will remain very large, significantly weakening debt affordability.”**
While “King Dollar” has continued its financial hegemony, the running of a staggering national debt – which now stands at over $34 trillion – has had baneful repercussions for the average American. The funding of the debt has led to a resurgence in 1970s-style stagflation with a decline in productive job growth such as manufacturing and near double-digit price inflation. This, of course, has had a deleterious effect on the middle and lower classes’ standards of living since rising prices disproportionately effect these groups harder than the more affluent.
Of course, the simplest approach (although politically unpalatable) to the problem would be to dramatically cut government spending by eliminating agencies and programs. With the Uniparty in charge, however, there is virtually no chance of budget cuts, especially in an election year. Whatever happened to the “deficit hawks” and those calling for a balance budget amendment to the Constitution?
The funding of the debt is the primary factor for the rise in consumer and producer prices. Since federal spending is beyond what the government receives in revenues, it must borrow through the issuance of debt/bonds to make up for the shortfall.
The principal buyer of government debt has been the Fed, which pays for the bonds by the creation of money, “out of thin air.” The printing of money (now done through the stroke of a computer key) bids up prices in the market. Federal Reserve officials have innocuously called this scam “Quantitative Easing” (QE), which is in realty a monetization of the debt.
Since the Fed has begun hiking interest rates, it has been doing “Quantitative Tightening” (QT) where it ostensibly has not been buying U.S. debt, but selling it. This would lead to a contraction of the money supply and a fall in prices. The central bank has not been aggressive enough in its tightening nor has it raised interest rates enough to have any real effect on soaring prices.
It is highly doubtful that the U.S. will escape the fate of other republics who have pursued reckless fiscal and monetary policies. It is almost a mathematical certainty that the nation will default on its debt by either hyperinflating the currency or discounting bonds with massive haircuts to their premiums.
The most likely path is hyperinflation; then the dollar will once again fulfill Voltaire’s dictum that all “paper money eventually returns to its intrinsic value – zero.” While there will be massive social misery from a dollar collapse, the one bright spot from its demise is that it will mean an end of the murderous U.S. Empire.
The most likely path is hyperinflation; then the dollar will once again fulfill Voltaire’s dictum that all “paper money eventually returns to its intrinsic value – zero.” While there will be massive social misery from a dollar collapse, the one bright spot from its demise is that it will mean an end of the murderous U.S. Empire.
*Tyler Durden, “’A Pork Fest of Epic Proportions:’ Congress Passes Spending Package to Avert Shutdown.” Zero Hedge 8 March 2024. https://www.zerohedge.com/markets/pork-fest-epic-proportions-congress-passes-spending-package-avert-shutdown
**Quoted in Michelle Fox, “The U.S. national debt is rising by $1 trillion about every 100 days,” cnbc.com https://www.cnbc.com/2024/03/01/the-us-national-debt-is-rising-by-1-trillion-about-every-100-days.html Updated, 4 March 2024.
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Fiat + G.R.E.E.D. = MOAB
Does anybody have any tasty ALPO recipes?
Asking for a friend.
Canned tuna is cheaper…load up
And canned chicken. Amish canned beef chunks, goya canned ham and spam. Stack it deep
Canned sardines in olive oil.
Delicious as a sandwich and mercury free.
Pure protien and everything good.
Recipe on request.
I’m gonna try sardines in olive oil my mutha is bringing me a can. She says they’re great.
Can you please post it, Colorado Artist? Never had sardines, but willing to try in a recipe. I’m not a picky eater, but something about trying sardines on their own makes me squirm a bit. Thanks.
Squirrel, bunny, ground hog, frogs, carp (no limit) birds, there is a lot of protein out there, the rest you will have to grow. Smoke meats, can fruits and veggies, live in a rural area. Less people, les chance of a terrorist attack. They prefer to make a big splash.
The only terrorist attacks are dot gov staged
To expensive.
Alpo is expensive.
And that’s the “cheap” stuff. It’s amazing what sibling spends on dog food and the dog doesn’t even eat it half the time. Smh.
Does anyone’s Congressperson return emails?
Lizzie Fletcher (D, TX7th) sure as hell doesn’t!
Probably a dyke
LMAO
And you are surprised peon?
I read “Felcher” so so surprise there.
Sure, I get a form letter every time I write them.
Not my congress critter, I heard squat from John Cornhole in Texas.
Not my congress critter, I heard squat from John Cornhole in Texas.
Good Cracker. Actor.
Andy Griffith, (Sheriff Andy Taylor) was what people in the western north carolina call a “down east liberal”. Their syrupy draw is indicative of a “confidence man” and pretense. You may not notice the knife in your back until you take the first step to walk away.
No wonder he had a reputation as a prick. Now, Otis and Floyd – them’s good people.
The “authorities” aren’t going to do diddlysquat about the deficit…We are in the final looting stage of American decline…
Agreed. But it’s amazing that it has continued this long. When will we finally see the consequences of this insanity?
I spend 150 a week on groceries
Spam and Ramen will cut your bill.
Got that stuff stacked 5 feet tall
For breakfast, beans and tortillas.
For lunch, no lunch.
For supper, beans and tortillas.
I got some groceries. Some peanut butter. Should last a couple of days.
You KNOW we’re headed into the woodchipper when the rock stations all start playing Life During Wartime. Heard it yesterday on the drive home.
Who doesn’t?
I don’t and even if I did, I wouldn’t admit it on the internet, even TBP.
It’s almost if TPTSB [ie GLOW Bull list Bang-currs] are spending money like there’s NO TOMORROW because pretty soon there will BE NO TOMORROW….. what do they know that’s coming that the SHEEPLE-PEOPLE don’t??
[13 mins]
By the way, the $30+ TRILLION reported “unaccounted for” by the US GOV’T™ has already been spent, but not on the SHEEPLE-PEOPLE —Spent to prepare for what’s coming for the OWNERS of the world [the ones that are well beyond the FORBES RICHEST LIST] and NOT YOU.
I am 63 and Ben’s neighbor. Even if I live long enough to see the shift there is no way I will survive. .00001 are aware of what is coming.
….willingly ignorant????? NO!!!! It is the plan!!!! Candidates not discussing it????? It’s the plan!!!!! All our leadership is in on the plan!!!!! They are nothing but actors on the world stage!!!!
Actors, but in real life they’re closet pedos and freemasons
This site used to be a cut above the rest. Now it is hyperbolic clickbait propaganda, just like every other money grubbing site.
Paragon be gone then, why are you here?
At least i can call out niggers spicks and Jews here lol
I see YOUR priorities are in order.
Media commentators are shocked that interest now costs “$1 trillion”. Shit. That’s yesterday’s news. Current yield curve averages about 4.5%. Multiply that with 35 trillion and we’re at $1.5 trillion / year in debt service even if they would stop deficit spending now. It’s baked in. We’re going parabolic, folks. Where to look for past examples of how to survive? Japan? Argentina? There’s probably never been a comparable situation with the biggest reserve currency becoming worthless.
They know what they’re doing, it hasn’t mattered yet and I personally can remember Gerald Ford squawking about a seventy five billion dollar yearly deficit an a nearly trillion dollar debt. Yeppers squawk away, we’ll see what we’ll see.
On money printed out of thin air.
“Of all the contrivances for cheating the laboring class of mankind, none has been more effective than that which deludes them with paper money.”Daniel Webster (1782-1852)
“When plunder becomes a way of life for a group of men in a society, over the course of time they create for themselves a legal system that authorizes it, and a moral code that glorifies it” — Frederic Bastiat, Author and Economist
End the fed and usury.