Tuesday, September 12, 2017

US cracked the $20 trillion dollar debt level

Hurray, another milestone for the US! And by the way the Dow made an all time high today.

US debt level

I point out this milestone for a couple of reasons. First of all no one really talks about it. It gets a mention on the evening news in passing if it all. Most people could care less or can’t even conceptualize what $20 trillion dollars actually represents.

I am not going to make a big deal about it either except to mention that the debt does not matter, at least for today.

However the debt will continue to grow just like a tumor. And eventually, if it is not dealt with, it will matter one day.

They say countries go broke slowly and then all at once. There is a lot of built up wealth and inertia in the US. So this can probably go on for many years.

Nevertheless, the debt will grow and the $100-$200 trillion in unfunded liabilities will grow. At some point the monetization of debt will matter and the dollar will devalue.

That will make your standard of living go down and cause even more income inequality.

Do not expect politicians to solve this problem as what needs to be done to solve this is not politically possible and what is politically possible will insufficient to cure the problem.

History and human nature are not on the side of the US. Better make your preparations while you can.

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