In the reality of the relentless ascent of U.S. federal debt, a tipping point threatens to push the government into financial insolvency.
Given the complex nature of this impending crisis within the context of a Global Financial Reset (GFR) and Global Currency Reset (GCR), is it possible to determine exactly when the U.S. federal government debt becomes undeniably unsustainable?
Factors Driving the Surge of U.S. Federal Debt
The debt-GDP ratio has been steadily rising since the late 2000s, fueled by major policy shifts responding to events like the Great Recession, the Tax Cuts and Jobs Act of 2017, and the recent Covid-19 stimulus.
These factors contribute to a financial landscape echoing a global economic reset and currency shift—a narrative central to the GFR/GCR scenario.
Essentially, as the government borrows more money, it must pay higher interest rates to lenders. This dynamic creates a risky situation.
If markets foresee continuous debt growth, they demand even higher interest rates, setting off a dangerous cycle that can threaten the government’s ability to borrow and spend.
This echoes the challenges foreseen in the GFR/GCR thesis.
Challenges in Predicting a U.S. Federal Debt Crisis
Predicting when the crisis will hit is no easy feat.
Financial models face challenges due to their complexity and the unpredictability of future events—complexities akin to the uncertainties surrounding the fate of the current financial system.
Attempts to forecast when the debt will bankrupt the U.S. Federal Government involve wandering through a maze of intricate financial variables within the GFR/GCR framework.
The answer is, it’s nearly impossible to forecast a time-frame for a debt collapse. If anyone says they have a date, they certainly don’t know.
What to Watch For
As the debt relentlessly climbs higher, keep an eye on key indicators.
The debt-GDP ratio reaching critical levels around 130% or more, continuous policy changes to manage the increasing debt, and rising interest rates demanded by financial markets (to manage the debt default risk) are critical signs to watch for.
These indicators provide insights into the evolving financial landscape and potential shifts in the global economic order, aligning with the prophesied changes in the GFR/GCR narrative.
The Bottom Line
Federal Debt is different than total Public Debt (which is over $34 Trillion as of today).
As of September 30, 2023, the federal debt stood at a staggering $26.3 trillion, nearly 98 percent of projected GDP.
The United States stands on a cliff, looking over the edge into the peril of escalating federal debt within the context of a shifting financial and geopolitical (BRICS) landscape.
Understanding the complexities of when federal debt becomes unsustainable requires discerning observation of policy shifts, market dynamics, and the nuances of economic forecasting—a journey poised on the brink of an uncertain fiscal future within the narrative of the GFR/GCR.
