Gallatoshi on Nostr: “It's dangerous to be right when the government is wrong." — Voltaire It took the ...
“It's dangerous to be right when the government is wrong." — Voltaire
It took the United States 205 years to get to $1 trillion dollars in debt. Now they add that every three months. How so you say?
The US Federal Government spends at a pace of $1 trillion every 100 days. And as bad as that sounds, it's about to get worse.
You see, the compounding effect works with debt too. Interest rates are up eightfold in under four years. Because of the compounding effect, 20% of the entire debt has piled up since the beer virus. With total debt set to reach $35 trillion in the next 8 weeks.
That's $106,000 for every American man woman and child. Whether you're a MAGA Trumpster, a Sanders socialist or a Neiman Marxist. You owe.
And the problem isn't going away. Because we're addicted to debt. And debt is like the opioid crisis.
One reason that debt is so addictive is the same for opioids. Because it works so well. The high is immediate. Spend today and pay tomorrow. A dollar today is worth more than one in the future.
But what happens if we keep going like this? Banks used to keep the debt structure buoyant. They'd buy US Treasury bonds to fund government spending. And keep the bonds on their balance sheet as reserves, so they can lend out at higher rates.
That worked until 10-year Treasuries collapsed 46% from March 2020 until October 2023. Those losses were comparable to the stock market crashes of the Dot-com era and the '08-'09 GFC. But this time it happened in so called "safe-haven" assets that are the linchpin of the financial world.
That prompted the government to take on even more debt. They had to inject trillions into the system through swap lines and bank bailouts like the BTFP. We passed the hot potato to the Central Banks. The problem? There's nowhere left for the CBs to pass it.
And the only steam valve left is the currency.
There's a famous experiment called Rat Park. By a psychologist named Dr. Bruce Alexander. In it, researchers offer rats two water bottles. One filled with water, and the other with heroin or cocaine. If caged alone, the rats would drink from the drug-laced bottles until they overdosed and died.
But if they were among others, free to roam, play and have sex, they preferred the plain water. "Even when they did drink from the drug-filled bottle, they did so intermittently, not obsessively. And never overdosed. A social community beat the power of drugs" said Dr. Alexander.
Folks, we need to get back to drinking plain water. Not the drug laced debt water we've become addicted to. In other words, we need to return to a focus on families, social communities, human contact and support. Like the rats that survived.
We need to force fiscal responsibility onto government. And let the parasitic politicians die out. How? By getting rid of the contaminated water. Stop letting them borrow to buy votes.
Let the pendulum swing away from where we are, and return to founding principles. That'll attract global talent. Which allows technological improvements that unlock abundant energy, clean water, and medical advances.
Then we can export that abundance to the rest of the world. Conflict over resources ends. Prices fall, purchasing power rises, humanity thrives.
With fresh water and a new pristine reserve asset of the economy.
The alternative? We persist in pressing a pleasure lever until our bodies and brains are overcome.
Living in Rat Park.
It took the United States 205 years to get to $1 trillion dollars in debt. Now they add that every three months. How so you say?
The US Federal Government spends at a pace of $1 trillion every 100 days. And as bad as that sounds, it's about to get worse.
You see, the compounding effect works with debt too. Interest rates are up eightfold in under four years. Because of the compounding effect, 20% of the entire debt has piled up since the beer virus. With total debt set to reach $35 trillion in the next 8 weeks.
That's $106,000 for every American man woman and child. Whether you're a MAGA Trumpster, a Sanders socialist or a Neiman Marxist. You owe.
And the problem isn't going away. Because we're addicted to debt. And debt is like the opioid crisis.
One reason that debt is so addictive is the same for opioids. Because it works so well. The high is immediate. Spend today and pay tomorrow. A dollar today is worth more than one in the future.
But what happens if we keep going like this? Banks used to keep the debt structure buoyant. They'd buy US Treasury bonds to fund government spending. And keep the bonds on their balance sheet as reserves, so they can lend out at higher rates.
That worked until 10-year Treasuries collapsed 46% from March 2020 until October 2023. Those losses were comparable to the stock market crashes of the Dot-com era and the '08-'09 GFC. But this time it happened in so called "safe-haven" assets that are the linchpin of the financial world.
That prompted the government to take on even more debt. They had to inject trillions into the system through swap lines and bank bailouts like the BTFP. We passed the hot potato to the Central Banks. The problem? There's nowhere left for the CBs to pass it.
And the only steam valve left is the currency.
There's a famous experiment called Rat Park. By a psychologist named Dr. Bruce Alexander. In it, researchers offer rats two water bottles. One filled with water, and the other with heroin or cocaine. If caged alone, the rats would drink from the drug-laced bottles until they overdosed and died.
But if they were among others, free to roam, play and have sex, they preferred the plain water. "Even when they did drink from the drug-filled bottle, they did so intermittently, not obsessively. And never overdosed. A social community beat the power of drugs" said Dr. Alexander.
Folks, we need to get back to drinking plain water. Not the drug laced debt water we've become addicted to. In other words, we need to return to a focus on families, social communities, human contact and support. Like the rats that survived.
We need to force fiscal responsibility onto government. And let the parasitic politicians die out. How? By getting rid of the contaminated water. Stop letting them borrow to buy votes.
Let the pendulum swing away from where we are, and return to founding principles. That'll attract global talent. Which allows technological improvements that unlock abundant energy, clean water, and medical advances.
Then we can export that abundance to the rest of the world. Conflict over resources ends. Prices fall, purchasing power rises, humanity thrives.
With fresh water and a new pristine reserve asset of the economy.
The alternative? We persist in pressing a pleasure lever until our bodies and brains are overcome.
Living in Rat Park.