Updated 6 months ago
Ray Dalio warns that mounting U.S. debt problems could lead to ‘shocking developments’
Current national debt: $36.2 trillion
Ideally, we slowly, steadily grow out of it economically.
The alternative is far more dark.
A significant supply-demand problem regarding U.S. debt could have a profoundly disruptive impact on the global economy.
The first thing is the debt issue, we have a very severe supply-demand problem. The U.S. has to sell a quantity of debt that the world is not going to want to buy. The issue could result in a restructuring of the debt, the U.S. applying pressure on other countries to buy the debt, or even cutting off payments to some creditor countries.
Just as we are seeing political and geopolitical shifts that seem unimaginable to most people, if you just look at history, you will see these things repeating over and over again. We will be surprised by some of the developments that will seem equally shocking as those developments that we have seen.
After everything that made the American economy great is destroyed by the very same factors that caused the last Great Depression, America will go bankrupt and refuse to pay its debts as if it were an Atlantic City casino, creating ripple effects across the global economy, putting the world into a years-long depression.
What Trump did to his business partners and vendors will be done to the world.
The Euro of all things will become the global fiat currency, China will fill the vacuum, and the American way of life so many knew will become an ever-more distant memory. This will hit all income levels.
Things that will be permanently gone:
Social Security
Medicare/Medicaid/ACA
Shopping Malls
Call centers with humans
Cable TV
Landline phones
Cash & coins (except for Bitcoin)
Printed reading material
And all long the way, conservative media will essentially encourage their viewers to embrace a lower standard of living — and to view it as an act of service toward MAGA’s grand vision for the country.
…all the way down. No one will seem to remember that this was all avoidable.
This will last until a new leader re-prioritizes what made the post-WW2 era so prosperous – something that sounds so remote now. Free trade across borders.
It will take years to crawl out of this hole.
Now is the time to be truly conservative. If you aren’t financially and mentally prepared for what may come, you should be.
