USA DEBT BURDEN NOW IMPOSSIBLE TO FIX

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“U.S. Interest Burden Hits 28-Year High, Escalating Political Risk.”

It’s talking about the interest the federal government pays on its outstanding debt. According to the report…

The U.S. debt interest-cost burden climbed to the highest since the 1990s in the financial year just ended, escalating the risk that fiscal worries limit the policy options for the next administration in Washington.

Since when have fiscal worries slowed down Washington? We’ll just borrow more, right? Uncle Sam already owes $36 trillion. What’s a couple trillion more among friends? Well, maybe. But that’s getting harder now. 

The U.S. Treasury paid $882 billion in net interest payments during the fiscal year ending in September. That’s an average of $2.4 billion a day in interest payments. And that works out at more than 3% of annual GDP. Let’s break that number down further. Uncle Sam’s budget deficit is about 6% of GDP. About half of that is current spending. The other half is debt service. And a 6% budget deficit is something generally only seen in times of war or deep recessions when tax payments fall and the government boosts spending to stimulate demand. 

Well, the US is not fighting a war right now, and last I checked, the economy was growing at a brisk 3% clip. 

The budget deficit has blown out – and it is all but impossible to fix – because half of the budget deficit will pay the interest on prior years’ ill-advised spending. If the government were to balance the primary budget tomorrow – and the odds are better of you winning the lottery – they would still be looking at deficits of 3% of GDP due to interest expense on existing debts. So, to balance the budget, they need a budget surplus of 3% of GDP. And even that wouldn’t pay down the debt. It would simply cover the interest payments. 

Inflate or Die

This is the hole US leaders have dug the country into. Neither Trump nor Harris has a viable plan to get them out of it. Both have pledged to find extra-large shovels to dig even deeper. 

The only way those debts get paid down is in dollars that have been deeply depreciated due to inflation. 

It’s inflate or die for Uncle Sam. This is why bitcoin, gold, and other dollar hedges are core, long-term holdings for us at The Freeport Investor. And that’s why you should keep some in your portfolio, too. As the value of the dollar continues to inflate away, dollar hedges will continue to climb.

Biblical prophecy tells us what this impossible-to-fix debt burden leads to, the WEF Great Reset and a one-world government with a demonically empowered leader, the Antichrist.

STOCK MARKET CRASH IMMINENT

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Will You Get OUT Before the Real Panic Begins?

While everyday investors keep piling into names like Nvidia, Apple, and Amazon… the owners of those very companies — Jensen Huang, Tim Cook, and Jeff Bezos are dumping their OWN shares at a record pace and they are leading a parade of corporate insiders, Fortune 500 CEOs, and founders who’re selling shares of their OWN stocks, as well.  

Insider selling has just hit the highest level in three years. Jamie Dimon, the CEO of JPMorgan, just sold $150 million of his own shares — for the first time EVER.  

 Financial experts are saying:  

The wealthy are now moving their cash to a class of stocks that sit at the largest, most critical, and economically resilient pillar of the US economy. These stocks are hyper-innovative but completely overlooked… billionaires love them for market-reliance… and their incredible ability to jump 200%, 500%, even 1,000% higher. And the world’s wealthiest: Warren Buffett, Jeff Bezos,” Bill Gates, Michael Bloomberg, Mark Zuckerberg, 48 members of Congress. They’re all moving large amounts of their own money into these stocks: Next-Gen Stocks. 

It’s about the “one-percenters” exploiting yet another massive “wealth transfer”. In the wake of every major market panic — the rich are the only ones to get richer?

  • In the aftermath of the dot-com crash, the top 10% emerged with 69% more wealth on average. 
  • In 2008 — the “already rich” walked away with vastly more wealth than everyone else…  
  • In the 2020 crash — the top 1% added $15 trillion to their net worth… 
  • Meanwhile, the middle class has suffered ever since.  

What are the next Gen Stocks? They are the stocks of solid companies that can benefit from AI but are not amongst the high flyers like Nvidia, AMD, Amazon, Google, Apple, and Microsoft.

They would include healthcare companies Bristol Myers Squibb (BMY), Pfizer (PFE), and Roche (RHHBY), and even companies like Walmart that are now automating their warehouses with AI and robotics. I would include some of the Quantum Computer stocks that are yet to “take off”, Super Micro Computers (SMCI), Broadcom (AVGO), Crowd Strike (CRWD), Emcor Group (EME), and Intel.

When countries are printing money like the USA, and amassing trillions of dollars of debt, there is no point in holding onto currencies that are doomed to lose value. Gold and silver are safe havens and recent increases demonstrate smart money is going there. More recently Cryptocurrencies, particularly Bitcoin are being seen as a better alternative to some currencies.

From a Biblical perspective which after all is the only one that is guaranteed to eventuate we know that the government and economic chaos will lead to a prophesied one-world government and the Antichrist. See my previous post U.N. Pact for the Future it demonstrates we are already on that path to a one-world government.