It’s finally happened. As of February 2022, US National debt exceeds 30 trillion dollars, and counting. This now puts the debt to GDP ratio of the United States at over a whopping 108%.
Just to put that in perspective, in the last 10 years, the national debt has more than doubled from just over 14T in February 2021. The constant money printing by the Federal Reserve, who literally churn new money out of thin air is seriously out of control, and there is no plan whatsoever to get out of this situation.
Why Should you care that that US national debt exceeds 30 Trillion?
Why should you care? Because this kind of debt ratio is regarded as a key indicator of increased default risk for a country. Country defaults can trigger financial repercussions globally. And when that country is the USA, then everyone in the world needs to pay attention.
Yeah, yeah, so what, many people probably think, as they just carry on with their lives. But these folk are in for a very rude awakening, and when they start to truly understand the sheer scale of the financial treachery that has taken place, particularly over the last couple of years since Covid hit, they are likely to hit the roof. This is why mainstream news is pretty silent on this issue, because if the people really understood the magnitude of the disaster that is about to befall the United States (and by extension the rest of the world) they would be revolting.
You may have noticed the price of everything in the shops increasing. That’s inflation, which in the US currently stands at around 7%….but if you use the methodology for calculating inflation which was used in the 1980’s, then inflation currently stands at over 15%.
The Federal Reserve and the government have no idea how to deal with this. For years, they have kicked the can down the road repeatedly, and the only solution any of these great financial wizards can come up with is to print more money, and thus the cycle continues.
The above graphic, courtesy of the awesome US Debt Clock website, outlines the scale of the debt crisis. A quick calculation shows that if you add the amounts of the top ten in debt countries together, the actual amount which nation states owe to banks is staggering, coming in at over 75 Trillion USD, of which the US national debt exceeds 30 Trillion, or around 40% of the overall amount owed.
That’s right. Central banks have printed so much money out of nothing, loaning it out at interest to world governments that if you just take this amount alone, then every man woman and child on the planet owes $10M each.
For years, people who have been highlighting the burgeoning crisis of the financial system have been dismissed as loons, conspiracy theorists and harbingers of doom, akin to those who wander around with “the end is nigh” signs. For anyone paying attention, it’s really starting to look like they were more prophetic than crazy.