After debt spirals, it collapses. From Michael Snyder at theeconomiccollapseblog.com:
If you are going to go out, you might as well do it with a bang. At the beginning of June, our national debt was sitting at $31,467,639,287,894.39. Today, it has risen to $33,442,148,619,617.43. That means that we have added almost two trillion dollars to the national debt in just three months. It is the largest single debt in the entire history of our planet, and it will never be paid off. Our debt spiral has reached a terminal phase, and all we can do now is prolong the agony. If we keep taking on more debt at an exponential rate, we may be able to extend our seemingly endless party for a little while longer. As for the bright future that our children and grandchildren were supposed to have, we destroyed that a long time ago, and so it doesn’t really matter what we do now.
What our politicians are doing to us is truly a crime against humanity.
And I am not just talking about the United States. All over the world, politicians have been on the greatest debt binge in the history of the human race, and for quite a few years it seemed like they were getting away with it.
But now interest rates are rising and there is great turmoil in the bond markets. The following comes from CNN…
A slump in government bonds around the world has pushed up the cost of some nations’ debt to levels not seen in more than a decade. That’s bad news for governments in the red but also for the wallets of millions of mortgage borrowers, stock investors and businesses.
Sigh. “The clock is ticking.” “The collapse is coming.” “This will not end well.” Robert, I have been reading and hearing these sayings ever since Y2K. First it was Don McElvaney. Then it was Cleon Skousen. Then it was Harry Browne. Then it was Richard Maybury. Then it was that Italian gentleman. But NO ONE can tell me WHEN. Yes, it could be this week or ten years from now. And Mr. Snyder makes his living selling fear porn. I am as prepped as I and mine can possibly be here in North ID. I will be 76 at the end of this month and I intend to live my life out as best as I can. Take care and thanks for SLL.
You have a sensible approach. I’ve been staggered by how much debt the U.S. and other governments have racked up, and I have, on occasion, been one of those voices of doom. My one cautionary note this time is that the bond market, in the throes of its worst bear market ever, may be acting as a canary in the coal mine. We’ll see.