by Alasdair MacLeod
Gold Money
Of all the dangers that threaten the global financial system, the one most likely to topple it is the US Government’s debt trap. This article explains how and why it is becoming inevitable.
According to the US Government, its debt stands at $35.210 trillion having grown 57% in the last five years. As the chart below shows, there was a big step up in early 2020 due to Covid. But subsequent attempts to control the deficit and therefore indebtedness have been absent.
[…] This article looks at the dollar’s debt trap, which despite being the greatest threat to the entire fiat currency based monetary system has attracted little notice from the financial media and investment commentators. Furthermore, the mechanics of a debt trap are poorly understood. It is timely, because with signs of America’s economy slowing down and formally reliable recession indicators such as the Sahm rule being triggered, the Keynesian response is for the government to increase spending to support the economy.