This Debt Disaster Won’t End – Most Will Be Slaves To Inflation

So things are really bad and we're going To reach a point of no return in this Debt crisis now a lot of us we are Focused on the rate hikes Russia Ukraine And Saudi Arabia but we are forgetting About a big picture that will affect Each and every one of us and very soon We might all become slaves to inflation Now I'm not joking here guys we are Literally months away from the United States hitting the debt ceiling once Again and this is a reminder that Government spending is out of control Now the U.S debt is nearing 31.3 Trillion dollars and the debt selling is Just below 31.4 trillion do you see a Problem here it's about to be bridge and There's going to be a firestorm to raise The debt ceiling again now we have Jared Yellen warning Congress that the debt Ceiling has to be raised or the U.S will Default on its debt obligations and Here's the reality after all the Debating is done all the posturing is Finished the debt ceiling is going to be Raised again I can almost guarantee that They are going to kick the can down the Road and raise the limit we even have Crazy ideas such as raising the deadly Living 200 quintillion dollars so that America can borrow money forever and That is 20 zeros by the way and it means An endless amount of deficit spending so I really want us to focus on what

Raising the debt ceiling will mean for Us and not on a circle show between the Republicans and the Democrats because The end goal is going to be the same More spending is going to happen and Everyone including you and me we are Going to have to pay the inflation tax Now we have to understand why the debt Ceiling will be raised no matter what if A debt default happens especially in 2023 we're going to have a global Financial crisis they're going to start In America's bond market now essentially If the U.S defaults there's going to be Two big things that will happen which Will collapse the U.S economy and take Down the rest of the world now the first Immediate effect is the bond market Crashing essentially the US government Won't pay the interest on the debt and We'll see a whole tsunami of bondholders Rushing to sell off their U.S treasuries Because they are worthless now investors Still rushed the exits to get back your Principle but it won't be there we will See bottom prices crash even harder than The UK Guild crisis and bond yields will Spike to the moon no one in the right Mind will want to land the United States Money anymore have mortgages will fly Through a rule consumption will grind to A halt and businesses will simply crush And burn we are looking at an instant Recession at best and more likely a

Great Depression in America again but The second effect is even worse and that Is the ultimate excuse for the Dollarization to accelerate now the Thing about the national debt is how the US is heavily dependent on other Countries to lend them money we can see That around a third of U.S debt is held By foreign countries and investors we Are talking about Japan China the UK and More or less the rest of the world so Just think about what a debt default Will mean now suddenly there are Treasuries they are worthless and They're going to just the dollar rise There's no need to hold US Dollars Anymore to buy American bonds and They're just going to cash it out maybe China would dumb dollars for gold maybe Japan will start selling dollars for oil But it really doesn't matter guys what Matters is prices on Commodities and Assets are gonna fly to the moon because All the dollars in foreign central banks Are going to come rushing out to buy Stuff and a big portion of it is going To hit back into the United States to Buy a property Farmland equities in Companies they're going to be runaway Inflation in the U.S if this happens and That's why I'm very confident they won't Default on the debt they will have no Choice but to raise the debt ceiling Again and again because defaulting will

Put the US Dollar on life support it Will stop becoming the world Reserve Currency and in fact the dollar will Weaken and imports to America they are Going to get much more expensive but Just because the 23 default isn't coming Doesn't mean we are out of the woods it Is just kicking the can down the road at An eventual default will come sooner or Later and the tricky thing about Borrowing money especially when rates Are rising is that you need to pay Higher amounts of Interest this month of The month and year after year and this Is going to consume a growing portion of Government revenues right now it costs Around 677 billion dollars to maintain The national debt which is a lot of Money that is almost 13 of total federal Spending allocated to just interest Payments alone plus that amount is only Going to grow as the Federal Reserve Continues to hike rates and keep them High to fight the inflation crisis we Are facing today now the next two charts Are going to be a horror show and you Quickly understand why an eventual Default is going to come so what we have Here is the growth of the interest Payments as a percentage of federal Revenues and it is growing exponentially In 30 years the interest payments alone Will account for 40 percent of Government revenues and this is a

Conservative estimate in fact by 2025 The interest payments are going to be Triple dead of U.S r d infrastructure And education spending combined and it Could even Eclipse U.S defense spending Which will be a disaster and this is the Incident nature of endless boring Without bothering to pay down the Principle no one can escape from this Debt trap not you and me and not even The US government and we have to ask Ourselves when will this make the debt Unserviceable at what point will the Interest payments be too much will it be At 30 of revenues or maybe 50 because Every time the payments take up only two Things can happen either the US Government spends less and defaults on Your obligations which is insanity like Social Security or they'll do a Shakedown at squeeze more Revenue Through taxes on the American people and Trading partners now the first is really Unthinkable so it likely come from the Pockets of Americans and businesses and Maybe that's why they are hiring Thousands of new IRS agents but the Point is that the eventual default is Going to happen and many of us be aren't Prepared for what it's about to happen Now I believe the US isn't going for Classical default that is not an option Because it will crush the US economy and the dollar as the reserve

Currency I am in the camp that they will Inflate the debt away remember that back In 2011 the former fat chair Alan Greenspan made a statement that many of Us taught was a joke he said the United States can pay any debt it has because We can always print money to do that now Ever since power up with the trillions Of dollars in 2020 doing the lockdowns This might become a reality if push Comes to show we already have the Federal Reserve holding 40 percent of U.S domestic debt so it isn't a stretch To imagine the Federal Reserve putting Up trillions of dollars again to buy Bonds from the treasury and this Essentially will be a default by Printing money bondholders yes they'll Give back their dollars but their Purchasing power will be compromised and This is why we have to look 10 or 20 Years down the road because I can Virtually guarantee that a debt ceiling Will be raised in the short term but we Are running out of road to Kick the Can What we have is a date and filled with a Ton of cans waiting for us at the end of The road we have to prepare for that Default to inflate Asian I hope we all Become dead slaves guys sure right now The markets they are bearish and asset Prices are starting to crash but this Won't last forever and we need to have a Plan to secure our wealth because

Inflation isn't going away the FED isn't Going to magically bring down inflation To below two percent within a few months And in fact I believe they will redefine What low inflation is and The New Normal Will be three or even four percent going Forward and that means interest rates Are going to stay elevated to keep a cap On inflation because if the FED dares to Drop rates to zero now we are going to See a Resurgence of the inflation Monster now when it comes to investing In the stock market we need to be Prepared for The New Normal remember the Good old days of 10 return a year in the S P 500 those days might not return we Need to remember that the good times Were doing a period of near zero Interest rates we had 10 years of easy Money and that allowed companies to grow Ultra fast and if rates are going to Stay high for the extended period of Time maybe it's five or even six percent Companies are going to see borrowing Costs Skyrocket and this will affect Their growth plus if a default does Happen we're going to have a confidence Crisis in the U.S stock market and this Is why I'm a big believer in hard assets Because they will weather the storm of Inflation and at that default if things Get nasty enough it might be the only Solution to help us Escape inflation Slavery now when it comes to hard assets

I believe real estate and gold are two Asset classes that will help us secure Our purchasing power especially in the Decades going forward now when it comes To real estate we have to understand the State of the average person on the Street we are going to see a generation Of home buyers who are forever locked Out from home ownership and according to Rate Finn U.S home buyers now need to Earn over 107 000 a year to afford a Median price home that's up 46 from just A year ago and when you can't pay the Mortgage you have no choice but to pay Rent and that's why we have the CPI for Shelter Rising non-stop to 6.6 percent Because rents are going through the roof People can't afford a home so they have No choice but to flood into the rental Market and it's no surprise that we have The big Banks like JP Morgan going out To acquire more than one billion dollars In single family rentals they are Snapping up rental properties because They know people are going to be priced Out as the Federal Reserve keeps hiking Rates now locking in a 30-year mortgage At over six percent is crazy high when It was just under three percent a year Or two back so if you have the ability To become a landlord the rental game is Something to consider because even if Housing prices fall the mortgage rates Are going to keep people away from home

Ownership and the second asset class is Gold now much more affordable and it Goes beyond just becoming an inflation Hatch so right now every asset class is Crashing and gold is down as well but It's only dropped by three percent Compared to the s p which has fallen by 17 but gold is an interesting Environment today we are in a Stagflation held where interest rates They are rising but inflation is Sky High as well so we could have a Situation where gold could outperform The stock market for quite a few years Because higher rates are going to Prevent companies from growing fast but Persistent inflation could wake up more Investors into buying more gold and it's No fun seeing your purchasing power lose Six or seven percent every year and we Could have a sustained move into Precious metals coming we have central Banks already buying gold in Crazy Amounts in 2022 and I believe this is Going to continue well into 2023 as well They know the end game is coming and They are diversifying their Holdings Into physical gold as a store of value And if a monetary reset does happen and Goal is involved we will see the price Go through the room and that's why I Have a healthy position in gold and I'm Adding more every few months or so even As the markets continue to Trend down

Because eventually the markets will turn Power will pivot and inflation could get Much worse now I'm sure a lot of us have Heard of the great reset coming and at Least to me I think it's already here on A local level we are talking about a Wealth divide and it's going to get Worse I believe it will be between People who own hard assets that generate Revenue and store wealth versus people Stuck away in people's assets that will Get inflated away now raising a debt Ceiling doesn't give confidence to Investors this is what Janet Yellen just Doesn't understand yes it will save the U.S credit rating in the short term but It's telling the whole world that America has a spending problem a very Big spending problem and when the Chickens come home to rules my money is On the Federal Reserve to inflate away The debt obligations by printing money They will likely choose to debase the Dollar to keep the game going and if That happens people with hard assets Like gold real estate they will stay Afloat so don't lose sight of big Picture guys especially when it affects You personally have a plan to buy hard Assets as this market crash continues so Let me know what you think are you Prepared if a debt default actually Happens Will the debt ceiling be raised yet

Again let me know in the comments below Stay safe be sure to smash that like Button and subscribe as we navigate Through these crazy times