Worse than sobering.
Because they can’t pay it back, except by printing more dollars. And dollars issued by the FRB carry an automatic 6% per annum interest charge.
The only way to actually eliminate the debt is to pay it back with substance, not dollars. That means something real, like land or gold or cotton balls, something.
And we just ain’t got it. So they will continue to print dollars and make the debt bigger and bigger until sovereign paper is worthless.
It was only in the last week or two they authorized increasing the debt from 12 to 14 trillion. Guess where we are now, the last figure I saw?
At this rate, we’ll be near 20 trillion by the end of the year.
Then, it’s over. Cause if the welfare folks and the social security folks and all the other folks stop getting their checks, well, you can imagine.
And the net result is...
Because the only thing government debt has been able to accomplish is to curb hyperinflation. Instead of printing a half gazillion physical dollars, you just print a bond with a pretty picture on it and make it look all official, and use it to suck back the dollars that live all over the world.
Hyperinflation. If government is unable to sell bills of credit (they were explicitly prohibited from doing it in the first place by that old Constitution BS), they will go to the last resort. Physically printing the dollars.
They have to. Or else the populace would tear DC down to the ground.
“The only way to actually eliminate the debt is to pay it back with substance, not dollars. That means something real, like land or gold or cotton balls, something.”
Okay, let’s say we back the dollar with 10% gold. Half the world loves gold. Would this cause a stampede to hold dollars? How would strong demand for gold-backed dollars affect our debt?