It’s no secret that the debasement of the dollar to monetize America’s ballooning debt poses serious risks to the economy. But here’s the real question: Do we worry about it NOW?
I ask this because too often, I encounter people trapped in the mindset of the past, or fixated on predicting a future they won’t even live to experience.
Meanwhile, the lens is blurred, when the focus should be clear—make money TODAY, using the lessons of the past with a focus on the immediate future. Forget about the next decade; I’d argue the horizon shouldn’t extend beyond the next 365 days.
We’ve all seen what happens in countries like Zimbabwe, Lebanon, Argentina, and Venezuela, where hyperinflation spiraled out of control and debt mountains eventually collapsed under their own weight. This outcome could be the eventual fate of the U.S., but to those claiming it’s imminent—whether within months or even the next decade—I’d say you’re missing the broader historical context.
The timeline isn’t as clear-cut, and while these events may rhyme, history has yet to write the final verse for America. In other words, the mighty USD will not lose the war on being Number One, as the winner of the battle is over a decade away.
GOVERNMENT SPENDING: THE REAL PROBLEM
The real issue facing the U.S. right now isn’t just the national debt or taxes. It’s the sheer amount of government spending—money being funneled into inefficient, unproductive projects that fail to generate equivalent productivity gains.
We’re talking about wasteful investments in proxy wars and flawed green energy initiatives that aren’t yielding the returns needed to justify the expenditures. And let’s be clear: this isn’t about whether billionaires are paying their fair share. It’s about the government running a spending machine that’s out of control.
Here’s where the problem deepens:
THE DEBT MOUNTAIN GROWS
America’s debt has skyrocketed. Two years ago, they were sitting on $3.7 trillion in debt, and now they’ve tacked on another $4.7 trillion.
To make matters worse, the national debt is growing faster than the country’s productivity. What does that mean? Think of the U.S. as a company that’s burning cash faster than it can generate revenue. Eventually, that company hits a point where it can’t even cover its interest payments, let alone reduce its overall debt load.
This is the predicament the U.S. is heading toward—a debt spiral.
And the worst part? This debt spiral leads to an inevitable showdown with unsustainable interest payments. Despite the U.S. dollar being the world’s reserve currency, it’s at risk of losing investor confidence if the currency continues to debase at this rate. Let’s not sugarcoat it—when your debt outpaces your income, you’re on borrowed time, but that doesn’t mean it’s going to happen quickly, nor without a fight.
The U.S. government’s fiscal trajectory is unsustainable, and well-documented. Programs like Social Security, Medicare, and Medicare account for $4.1 trillion in spending alone, but with $4.9 trillion in total income, most of that money is already spoken for.
And that’s before we even talk about defense spending, which runs around $950 billion annually. Tack on more than $900 billion in annual interest payments on the national debt, and it’s easy to see how the U.S. is consistently spending more than it earns.
Now, add it all together. Defense, mandatory programs, and discretionary spending push the total to about $7 trillion annually. Even if we eliminated all discretionary spending, the U.S. would still face a $1 trillion deficit.
So, what are the options here? Cut spending, raise taxes, or keep borrowing until the financial system collapses under its own weight. The truth is, neither political party is willing to take the hard steps necessary to slash spending significantly.
Instead, they’re caught in a cycle where the government spends, inflation rises, and the Federal Reserve tries to control the fallout by raising interest rates. But this only creates more issues, especially for everyday people facing skyrocketing costs in essentials like groceries, gas, and housing. Meanwhile, the government’s runaway spending adds even more inflationary pressure, working directly against the Fed’s efforts to stabilize prices.
BITCOIN AS A POTENTIAL SOLUTION
So, where does Bitcoin fit into all of this? I believe Bitcoin offers a potential solution to this mess. Unlike the U.S. dollar, Bitcoin can’t be printed endlessly. It’s a deflationary asset with a finite supply—only 21 million Bitcoin will ever exist, and we know the exact timeline for when the last one will be mined. This kind of monetary certainty makes Bitcoin a valuable store of wealth, especially in a world where fiat currencies are subject to endless inflationary pressures.
But let’s face it—Bitcoin, for all its promise, still faces challenges when it comes to everyday use. Right now, people hoard Bitcoin, viewing it as an investment that will appreciate over time. This “hold” mentality stems from the belief that Bitcoin’s value will rise, making people hesitant to spend it. On the other hand, there’s a growing movement to spend Bitcoin in order to help build out a functioning circular economy. The problem?
Bitcoin’s deflationary nature encourages saving, which could slow down economic activity.
There’s a potential solution, though. If we shift to a system where everything is priced in Bitcoin, the currency’s value in relation to traditional money (like the U.S. dollar) becomes irrelevant. Instead, people would evaluate their Bitcoin holdings based on what goods and services they could buy. This change in perspective could encourage more spending, which would help fuel the growth of a Bitcoin-based economy.
THE RISE OF STABLECOINS AND CBDCS
Another piece of the puzzle is the rise of stablecoins and Central Bank Digital Currencies (CBDCs). Stablecoins are already being used as transactional tools in the crypto world, acting as a bridge between traditional fiat and cryptocurrencies like Bitcoin. But CBDCs? Those present a whole new set of risks. Governments could gain unprecedented control over financial transactions, using digital currencies to track, restrict, or even block purchases. Imagine a world where your spending is monitored, and the government can deny access to your funds based on your behavior or political views. It’s a chilling thought, and one that should give anyone pause.
FACING ECONOMIC REALITY
The reality is that we’re living in an unstable financial system. The national debt continues to balloon, inflation is eroding purchasing power, and traditional currencies are facing an uncertain future. Bitcoin offers a glimmer of hope, but it’s not a silver bullet. We need to confront these economic challenges head-on, and that means making hard choices about government spending, inflation, and the future of money.
FOCUS ON THE NOW: A STRATEGY FOR THE NEXT 365 DAYS
For now, my focus remains on making smart financial decisions for the immediate future. The long-term collapse may come, but in the meantime, there are opportunities to profit and strategies to preserve wealth. Don’t get lost in doomsday predictions—stay grounded, focus on the here and now, and make moves that will benefit you in the next 365 days.
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