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The Empire of Debt is Crumbling
How soaring interest costs will break the system from the inside.
The United States is standing at the edge of an economic abyss, and no one in charge seems particularly concerned. Sure, politicians talk a big game about fiscal responsibility, but when it comes time to act, they shrug, kick the can further down the road, and reassure us that everything is under control. Spoiler alert: it’s not.
The numbers are staggering.
The national debt is pushing $34 trillion, and the cost of servicing it — just paying the interest — will surpass $1 trillion this year. That’s not spending on infrastructure, education, or healthcare. It’s just the bill for past spending.
And unlike in past decades, this isn’t a problem we can print our way out of. The Federal Reserve’s desperate attempts to curb inflation have pushed interest rates to levels we haven’t seen in decades, and as old, lower-interest debt rolls over into new, higher-interest obligations, the squeeze is only going to get tighter.
For years, the US has enjoyed the privilege of borrowing at rock-bottom rates. Global investors saw US Treasuries as the safest bet on Earth (they are the literal definition of “risk-free”), and that allowed Washington to spend freely without immediate consequences. But…
