Over the past 4 months, US debt has increased from $31.4 trillion to $33.6 trillion.
Just 2.2 trillion US dollars in 120 days.
Fun fact: 22% of the federal government's debt (about $7 trillion) is intergovernmental.
Here's another fact: Almost a third of all outstanding US government debt is due in the next 12 months and will have to be refinanced at a significantly higher rate since the Fed raised it from 0.08% in October 2021 to 5.33% in October 2023.
Everything is very simple:
Rates will have to be reduced.
If the rate remains around 5% and the national debt reaches $40 trillion by the end of 2025, then interest costs on the debt will then be ~$2 trillion (that's 45% of all federal tax revenue and twice as much as defense or Social Security spending). And here you can see that federal tax revenues are also falling!
Obviously, rates must fall. Voluntary or forced (due to recession or war). In other words, QE will return. New money printing will lead to another period of inflation, when rates will have to be raised again...
The Fed is trapped, as is the entire fiat system. Maybe it's karma for all the wars that private central banks have waged over the past 200 years?..
In any case, once everyone understands this, the Bitcoin alternative will become very valuable. 👌😏
