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(International Man)—“You can’t taper a Ponzi scheme.” Financial commentator and Bitcoin pioneer Max Keiser originally said these simple yet profound words.
A Ponzi scheme is an unsustainable scam that relies on a continuous influx of new money to keep it going. The scheme collapses if the flow of new money slows down or tapers. Many believe the Federal Reserve is running what amounts to a giant Ponzi scheme.
That’s because the US government’s obscene spending and skyrocketing debt have reached an inflection point where the whole system will collapse unless the Fed pumps an ever-increasing amount of new fake money into the system.
Government spending is the leading cause of the problem. However, the government cannot even slow the growth rate of spending, let alone cut it. Here’s why.
The biggest expenditures for the US government are so-called entitlements. It’s unlikely any politician will cut these. On the contrary, I expect them to continue growing as the last Baby Boomers enter retirement in 2031.
With the most precarious geopolitical situation since World War 2, so-called defense spending seems unlikely to be cut. Instead, it is all but certain to increase. Income Security is a catch-all category for different types of welfare. That’s unlikely to be cut too.
Efforts to reduce expenditures will be meaningless unless it becomes politically acceptable to cut entitlements, national defense, and welfare. Further, interest expense is exploding higher.
The federal interest expense recently exceeded $1 trillion for the first time and is shooting higher. That means the interest expense is already bigger than defense spending and everything else in the budget except for Social Security, which it will also likely exceed soon.
The cost of debt service (interest expense) is taking up a larger portion of the budget, leaving less for other expenditures. That means the government has to borrow increasingly larger amounts to maintain basic functions.
The situation is compounded by the fact that the more the US government borrows, the larger the interest expense on the federal debt, which causes it to borrow even more.
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Borrowing money to pay debt service is the inflection point in the debt spiral, and the US is at that point. Here’s the bottom line with the budget. Expenditures have nowhere to go but up.
But don’t count on increased revenue to offset these increases in expenditures. Even if tax rates went to 100%, it would not be enough to stop the deficits—and the debt needed to finance them—from growing.
The truth is, no matter what happens, the debt will not stop growing. It’s not even going to slow down. The debt is increasing exponentially.
The only way the US government can continue to finance itself is for the Fed to create ever-increasing amounts of fake money.
If the Fed doesn’t provide more monetary accommodation to lower interest rates, the growing interest expense will bankrupt the US government… and bring down the entire debt-based economy with it. In short, the Fed must print ever-increasing quantities of fake money, or the system will collapse.
Ludwig von Mises, the godfather of free-market Austrian economics, summed up the Fed’s dilemma:
“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”
The US government will not voluntarily “abandon credit expansion,” as Mises puts it because Washington is dependent on issuing increasing amounts of debt to pay for the ever-growing costs of Social Security, national defense, welfare, and interest on the federal debt.
As Max Keiser succinctly said, “You can’t taper a Ponzi scheme.”
That means their only choice is to debase the US dollar by ever-increasing amounts until, as Mises puts it, the “final and total catastrophe of the currency system involved.”
That’s why I am convinced extreme currency debasement is the inevitable outcome of the debt spiral. All the rest is noise.
Michael Saylor captured the essence of the situation when he said, “The road to serfdom consists of working exponentially harder to earn a currency that is growing exponentially weaker.”
I believe rampant currency debasement will be the most important investment trend of this decade, and it will devastate most people.
The worst of it could go down soon… and it won’t be pretty. It will result in an enormous wealth transfer from savers and regular people to the parasitic class—politicians, central bankers, and those connected to them.
Countless millions throughout history were wiped out financially—or worse—because they failed to see the correct Big Picture as their governments went bankrupt.
Don’t be one of them. That’s exactly why I just released an urgent new report with all the details, including what you must do to prepare.
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Jack Smith’s 165-Page Motion Arguing Against Presidential Immunity in Trump J6 Case Unsealed
by The Post Millennial
District Judge Tanya Chutkan unsealed on Wednesday a 165-page filing from Biden-Harris administration special counsel Jack Smith regarding upcoming presidential immunity proceedings in the January 6 case against Trump. Smith argued that Trump did not have presidential immunity for the crimes the DOJ alleges Trump committed, as “his scheme was…
Dr. Robert Malone Sounds Alarm on Self-Replicating RNA Vaccines: ‘Japan is the World’s Guinea Pig’
by RAIR Foundation
At the “Rescue the Republic” rally in Washington, D.C., Dr. Robert Malone delivered a sobering message about a new medical development that he reports could have dangerous consequences for global health freedom. Just returning from Tokyo, Dr. Malone warned of the imminent deployment of self-replicating RNA vaccines in Japan. These…
Launching the RIGHT REPORT to Fight the Real Enemies
by Publius
According to Ecclesiastes 10:2, A wise man’s heart inclines him to the right, but a fool’s heart to the left. The implications are stunning when we consider society today. That may not be the original intent of the verse but it clearly applies to the modern world. But what is…
Do You Want Your Prepper Bar Shipped to Your Home or Added to Your IRA?
by Sponsored Post
The massive shift of money being exchanged for physical precious metals started in 2022 with Central Banks across the globe breaking records. The frenzy caught on with large investment firms and financial institutions like BlackRock and JPMorgan in 2023. 2024 has been the year of regular citizens making the same…
No, Endorsing Kamala Harris for President Isn’t What Jesus Would Do
by The Federalist
Christians should reject the backward theology of teachers who twist the character of Christ to punish their political enemies. “Never Trump. This time Harris. Always Jesus.” These were the words not of Taylor Swift or Pete Buttigieg but of Ray Ortlund, a card-carrying member of “Big Eva,” in a recent…
The New Data on Illegal Alien Crime Is Shocking
by John R Lott Jr
(RealClearWire)—The new data on all the criminal noncitizens coming into the U.S. is shocking. The U.S. Immigration and Customs Enforcement (ICE) checks the background of illegal aliens they have in custody. But, the administration’s letter to Rep. Tony Gonzales (R-TX) shows that as of July 21, 2024, ICE let 435,719…
Antony Blinken’s Op-Ed Got Obliterated in Real-Time
by Townhall
For some reason, Joe Biden has been seen as a foreign policy guru, despite everyone thinking he was a clown. Former Defense Secretary Robert Gates was apt in his observation, noting that Biden has been wrong on every major foreign policy initiative over the past 40 years. He’s been rolled…
4% of Haiti’s Entire Population Has Entered U.S. Under Biden-Harris – And That’s Not All
by Woke Spy
President Joe Biden and Vice President Kamala Harris have been importing an astonishing number of third-world Haitians into the country. That’s right. The administration has been actively arranging and paying for Haitian “migrants” to fly into the U.S. More on this below, but first, we need to prepare the ground….
Meat Substitutes Still a Tiny Sliver of Us Meat Market
by Zero Hedge
Over the past few years, plant-based meat substitutes have come closer and closer to mimicking the real thing, with brands like Beyond Meat having even sussed out how to create fake meat that “bleeds”. But, as Statista’s Anna Fleck details below, after an initial boom, the company has rapidly come…
Box Office Bomb: Netflix Cancellations Explode After Co-Founder Gives Huge Donation to Kamala
by Red State
I admit it, I like Netflix. During the pandemic, when our Overlords here in California demanded we stay in our living rooms for two years, I watched countless terrible movies as well as some quality entertainment—it’s always hit or miss with the streamer. But I may soon vote with my…