The US Will Never Default on Its Debt
(Because it can just print more money)
It wouldn’t surprise us to learn that even Federal Reserve officials are secretly buying gold! That’s because in the face of unpayable US debt, establishment figures, left and right, are acknowledging that it’s all a game!
One hedge fund manager even called it “KAFAYBE!” That’s a term from professional wrestling that means it’s all fake.
On CBS “Face the Nation” Sunday, Treasury Secretary Scott Bessent said what he had to say: “The United States of America is never going to default. That is never going to happen, that we are on the warning track and we will never hit the wall.”
Of course the US won’t default! It will just print the money.
But even establishment voices are being raised. Here are a few juicy takeaways from a Wall Street Journal story this week headlined, “Wall Street Is Sounding the Alarm on U.S. Debt. This Time, It’s Worth Listening.”
Hedge-fund manager Ray Dalio told Bloomberg he gives America “three years, give or take a year” to avert an economic “heart attack.”
Peter Orszag, chief executive of investment bank Lazard and a former budget director, wrote last week that he’s worried about the debt and deficits because the wolf is “lurking much closer to our door.”
If bond yields surge, JPMorgan chief Jamie Dimon warns, “You are going to see a crack in the bond market, OK?”
“It is going to happen,” he added.
Former International Monetary Fund chief economist Kenneth Rogoff, is quoted saying, “Almost every country default—either through outright default or high inflation—occurs long before debt calculus forces it to.”
And hedge-fund manager, Paul Tudor Jones just called it all “kayfabe.”
Annual interest on the national debt has already “blown past $1 trillion,” notes the story. “Federal interest this fiscal year already will be more than the defense budget and more than Medicaid, disability insurance and food stamps combined.
The whole world is beginning to awaken to the money-printing kayfabe. We don’t know if that includes Fed officials, but we wouldn’t be surprised. But we certainly hope that you won’t be taken in.