Biden Sets a New World Record…

(…For Unpayable US Debt!)

Joe Biden is proving himself a master participant of one of the world’s oldest disastrous routines.

It’s always the same cycle.  Governments spend money they don’t have.  They then have to resort to borrowing or printing or a combination of the two.  The more they borrow and the more they print, the higher they drive interest rates to offset the loss in the currency’s real or constant value.  

The higher the interest rates, the faster the debt compounds.

Until one day…

Disaster.

Although he has been in public office since 1972, Biden seems quite unacquainted with the vicious cycle, although it has been on display over and over again around the world during the past half-century.   Indeed, Biden has set a new world indoor record for debt accumulation.   It has become quite serious, although the mainstream news media doesn’t seem to have taken much notice.  

Here are the facts:

Federal debt has spiked under Bidenomics.  It is now over $33 trillion dollars.  That is an increase of $2.16 trillion in the past year.  It is an increase of $1.58 trillion since the debt ceiling was lifted in June.

Wolf Richter, WolfStreet.com, famously calls it “Debt Out the Wazoo!”

As portions of the debt mature, it is rolled over at ever higher interest rates, which worsens the debt load without any new spending at all.  That’s why it’s a vicious cycle.  Bidenistas and other Washington wizards added debt upon debt while rates were at historic lows.  It apparently never occurred to them that rates would eventually rise.  As of the end of August, most of it is still being serviced at low rates, an average of 2.92 percent.  However, the Federal Reserve has been raising interest rates since March 2022.  Rates are now 5 percent higher than they were then.  The cost of servicing the federal debt will therefore keep climbing.

The outlook for the dollar is not good, but for now, the mainstream media is taking no notice, while government economists and Fed officials are whistling past the graveyard.  But the rest of the world does notice.  That’s why gold is running up in foreign currencies and why other countries, especially China, are grabbing all the gold they can get their hands on.

Make sure you have enough to see you and your family through the monetary disaster now in development by the Biden gang.