The Insurmountable Debt

With all the trillion dollar figures being thrown around these days, it’s a very good idea to remind ourselves just how much money that is.

One trillion, or, if it helps to see it written out: 1,000,000,000,000, is a lot of money. That’s one million times one million.  That’s $3333 per American. And the thing of it is, we aren’t just one trillion in debt; it’s more like 12 trillion. That’s $40,000 per American. I don’t have an extra $40K, do you? In fact, all my worldly possessions combined don’t total that much. So, just so we’re clear, the money to pay that bill simply doesn’t exist. What that means is that we’ll have to print more money, which makes the existing money worth less, which is by definition, inflation. Which means we’ll need more debt to sustain ourselves the next time. It’s a spiral that has no end until the economy crashes. The only question is whether it will be externally or internally triggered (that is, where in the spiral the cycle breaks under its own weight).

Ultimately, I can only see this ending one way: through collapse, and then the post-collapse rush to “do something” which will cause more freedoms to be restricted, more controls to be put in place, and more compromises to our sovereignty (both national and individual). It is almost as if the whole episode is being staged for that post-crisis power grab. However, I don’t think that is necessarily so; it is only that the most politically convenient route for the last 30 years has been to push the burden farther into the future, gradually piling up interest on someone else.

Ultimately, you can’t spend your way out of debt. You can’t inflate your way out of debt. The only way out is to pay the piper. For our country, that may mean a generation of lost income. Even so, it beats the alternative.

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