The US government’s debt forecast is a grave warning. Projected numbers suggest an increase of $5.2 billion daily. This continuous surge will push the total debt to a staggering $50 trillion by 2033.
Our current financial system fuels this growth. In a debt-based monetary system, the debt must constantly increase. This growth is essential for producing more money in the system.
Countries and people are diving deeper into debt. Their actions mirror their respective nations’ financial behavior. Consequently, the system’s total money supply consistently grows.
An increased money supply promotes higher inflation. Ideally, to cultivate a thriving economy, we need more debt. From a different perspective, more debt equals more money, leading to higher inflation.
Thus, the debt system establishes an upward-only direction for inflation. Nonetheless, this situation could be better for many citizens. The population is mirroring their government, operating on a deficit.
Austerity measures could be the answer. However, such bitter medicine is usually reserved for third-world countries prescribed by the IMF. World Bank, as the other major financial institution, remains silent.
Many forecast that the US will only consider spending cuts once the debt reaches a quadrillion dollars. A quadrillion, a figure usually reserved for astronomical studies, may trigger the necessary wake-up call. And that’s a chilling thought for the world’s largest economy.
