Time for Plan B

Desperate politicians have a two-fold plan to cling to power while the system they've built is on the verge of collapse. Neither of them is good for the rest of us.

Time for Plan B

I've concluded that global debt is unpayable.

Or, to be more specific, it is unpayable without destroying the financial system. That said, if it continues to grow, then it will destroy the financial system anyway.

A damned if you do, damned if you don't scenario with global consequences.

The United States is accruing $1 trillion in new debt every 100 days and must find buyers for a $10 trillion rollover by the end of the year. I'm not sure how many external buyers there will be for a bankrupt government bond, but it's doubtful the Japanese or Chinese governments will bid.

The US can just print money and buy the bonds themselves. That's what they've done previously, and as the world's reserve currency, they keep getting away with it.

Other nations with debt denominated in USD aren't so lucky.

However, confidence in the USD will eventually wane, and that's when the global financial tipping point will be reached.

I suspect we're pretty close to that end, which plays into my thesis of why the US government seems to want war.

The only experience this generation had with the government's extraordinary power was the COVID response. A manufactured threat led to oppressive government policy.

War provides the same opportunity. It creates a moral framework on which to enact immoral policies.

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