The US debt problem is becoming unbearable. In February of this year, The national debt reached $22 trillion. In 2018 the U.S. government paid $325 billion in interest payments alone. That is 35% more money than the entire proposed 2019-2020 California state budget.
Each household would have to pay $2,547 to pay the interest on the US debt. Let’s face it; there’s a US debt problem, and the government’s solution is to inflate it away.
The Government’s Love for Inflation
The financial media regularly tells us just how vital inflation is, to them it determines whether the economy is overheating. However; as I stated previously, economic growth does not cause inflation. Increasing the money supply is the cause of inflation.
Inflation is always rising due to the government or the financial institutions continually inflating the money supply by quantitative easing or fractional reserve lending. This practice has become the norm due to the ballooning US debt problem.
The government has a spending addiction. Politicians want to be elected into office and the best way to win is to promise free stuff to their constituents.
As of today, there’s no way to pay the national debt with taxes alone. Instead, we pay for it by printing dollars devaluing our currency and lowering our standard of living.
Inflate To Simulate The Economy
Whenever the US economy enters a recession, the government loves to stimulate the economy through inflation. Congress advocate for lower interest rates which increases more borrowing and fractional reserve lending.
They implement stimulus policies that enact more government spending. Moreover, they will sometimes print money outright (QE) to infuse the economy with more liquidity.
Of course, these policies manifest the US debt problem even more, as more debt leads to more inflation and a lower standard of living. Ever since the 2008 Great Recession, we’ve seen the rise of tent cities in every major city. Now we see them in the suburbs and getting bigger each year.
The US Debt Problem Will Only Get Bigger
The interest payments on the national debt have grown more significant over time. The US debt will continue to grow because politicians are not willing to admit that the debt is causing their constituents to live in poverty.
If the 2008 Great Recession caused the government to increase its national debt from $9.6 trillion to $19.6 trillion by the end of 2016, imagine the size of the debt after the next economic
bubble recession. It’s going to be ugly, and the politicians will do nothing but try to inflate away the problems.
Let’s face it; politicians are addicted to the legislative power they’re able to impose on their citizens. If they can make promises to remain in power, they will. Moreover, the US debt problem will never go away because it serves to benefit them.
It’s time to take action as the only savior to this debt problem will be gold and silver. It’s just a matter of time before the world is tired of this global fiat currency nonsense. And what many will run to is precious metals.