It’s just math:
It’s just math.
We’re going to go through the mother of all debt crises.
We’re already in one.
Watch this video to understand why.
The US is 35 trillion in debt.
They’re paying a trillion in interest.
They’re collecting 5 trillion from taxes.
They’re spending 7 trillion this year.
That’s a 2 trillion dollar difference.
Plus a trillion in debt.
Let me remind you what a trillion is.
A million million.
A million seconds is 11.6 days.
A billion seconds is 31.7 years.
A trillion seconds is 31,688 years.
Almost 32 thousand years.
Vs. 11 days for a million.
People don’t understand how enormous that deficit is.
And it’s only going to get worse.
What happens now?
A recession.
Or a great melt up.
That’s likely what politicians will choose.
Print the difference.
History has told us they always print the difference.
Always.
Once you do that, inflation runs out of control.
Once that happens, welcome to the great revolution.
We’re headed down that path.
And there’s no way to stop it.
One side can cut spending today, cut entitlements, and raise taxes and watch everything crater.
Or don’t do any of that, keep spending and watch your problem get infinitely worse.
There are no good decisions anymore.
The US is stuck in a math problem.
With no way out.
This problem will rear its ugly head soon.
Who knows exactly when.
My bet is in the next decade.
Cuts will be coming.
Taxes will be raised.
More money will be printed.
Inflation will be back.
Most people don’t understand this.
There’s a reason the Democrats or Republicans never talked about the debt problem during their campaign.
They can’t.
Both parties spend like drunken sailors.
Both parties don’t want to address the problem.
Because that means hard decisions.
That means cuts.
That means people losing their jobs.
Companies going under.
People not being able to afford their homes and their lives.
Sadly that’s what will happen and has always happened through history.
As the guy said in the video, the Great Depression sucked but look how much prosperity came after that.
We need it.
We need the glut and excess debt to be washed away.
We need to restart and rebuild.
But that means a brutal few years for most.
No one wants that.
But sadly history is clear, that’s what happens.
Either reset it or wait till you see revolutions everywhere.
If they choose to print, which they will, the inequality gap only widens.
The middle class then becomes poor.
While the rich continue to earn more and more.
History has told us when those conditions happen, revolutions soon follow.
As Dalio likes to put it, we can go through a beautiful deleveraging event.
Or we won’t.
Leaders have done it before.
But not many.
The US NEEDS one now.
Otherwise, the world will suffer on a scale similar to what happened in the 30s.
Haven’t written anything new on this topic in a while because I don’t want to think about it.
Spent a long time worrying about this a few years back and try not to think about it anymore.
Check out on my website.
But I have to let you know.
I have to write this down.
I have to tell someone.
Even if it’s just myself.
We’re going to go through shit.
Hope you’re ready.
The reason…
It’s just math.
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