The current national debt is 39.84 trillion, government debt is about 7.8 trillion and unfunded government liabilities are 88.4 trillion dollars. The total of these three is $ 136 trillion dollars. These figures cannot be totally accurate due to the fact they increase so rapidly virtually adding billions of dollars every minute.
It is extremely unlikely, and in reality impossible, for the U.S. to pay off all this debt because of continuous borrowing needed to make up for about 1.5 trillion dollars annually being borrowed to make up for overspending. The U.S. spends more than it takes in from all revenue sources which digs the debt hole deeper every year.
The cumulative inflation since 1950 is 1,285.69 %. Cumulative inflation is the total increase in inflation over all time since 1950. Today government figures only show month to month inflation, currently at 3.5 %, which makes things appear better than they are. This is why the cost of just about everything has skyrocketed. A new Cadillac in 1950 was between $ 2760 to $ 4000 dollars. Today a Cadillac costs between $ 50,995 and $ 168,000. A 3 bedroom two bath house with full basement in 1950 was between $ 7,400 and $ 10,000 today its between $ 220,000 and $ 450,000
The government continues to print more money every year to hold up the economy because it is taking more dollars to purchase the same items each year. The total of all goods and services remains relatively steady but the cost of them rises when the economy is flooded with money and wages have not been keeping up with inflation . Printing money causes inflation.
42 % of Americans believe a total economic collapse of the U.S. will occur sometime in the next decade. The Congressional Budget Office warns that our national debt is unsustainable and other institutions have estimated a total collapse in 14 to 20 years if the present rate of debt continues. The debt trend however has constantly increased.
The U.S. sells bonds to finance its debt but because the federal government routinely spends more that it takes in (a budget deficit) it prints new bonds to sell in order to pay off the old bonds. The economic future of the U.S. is highly dependent upon bond sales to continue operating and cannot fail to pay bonds when they mature else we would probably lose our place as the world’s reserve currency. The U.S. is totally dependent on other nations financing our debt. We simply cannot default on payments. Rolling over debt by issuing new bonds continues to grow the debt. In short there is no way out.
If socialism takes over in the U.S. with its goals of Medicare for all, free public education, universal child care and social housing it will bankrupt the U.S. in record time. Even with our current form of government if spending is not drastically reduced and new sources of revenue developed the collapse will only take longer to happen.
In a total economic collapse money will be worthless but essential items needed to sustain life, health and safety will become scarce and difficult to obtain. I think a barter system will develop in this situation.
If you are concerned about the condition of the nation’s economy there are some things you can do to prepare for the inevitable. There are web sites that offer advice as to how to prepare for what the future seems to be heading towards. Plan now.
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