The US Debt Spiral Becoming a Burden?

The reality of the market

Can you imagine the US debt increasing at a rate of 2 billion each day? A baffling amount where no value creation brings to the table. As an individual, you cannot carry so much debt or otherwise, you need to declare bankruptcy.

A government has more tools like increasing taxes, diminishing expenses, etc. Even if is just a temporary fix. You need to find a way, to pay it back, or reset the system.

Right now, as you can see in the picture, the US debt has reached 32 trillion dollars. Many financial analysts believe the debt might reach over 50 trillion in the next decade.

I don't understand

I cannot understand why they keep going this way of managing. Why keep spending without bringing a way to change this issue?

As an individual, it is impossible to operate when you have too much debt on your shoulders. You need to create a balance sheet to identify where you can reduce spending.

The magic formula is not spending as much as you earn.

With the US government, they keep spending without thinking of what might happen tomorrow. They seem to live in a mirage where something magical will happen!

I feel this is not the way to go from now on. Unfortunately, we see a trend of status quo where nothing will change.

Combined GDP

Do you want to discover an important fact about the US debt? The total debt exceeds the GDP of 4 countries.

Those are China, Japan, Germany, and the UK!

It is not normal to keep going with a figure like that. This will become even worse in the next decade. This number might reach 50 trillion dollars.

The alternative?

It is one reason Bitcoin still exists. It is not the perfect solution because of the extreme volatility of this asset.

The price change so often and you can trade it 24 hours a day without taking a nap.

If you can hold for the long term, the price has a tendency to go upward. Instead of keeping money in the bank where value erodes by inflation. Anyway, we need some fiat money for daily purchases and spending.

You can as well expose yourself to precious metals like gold and silver. Have coins or invest in a precious metal ETF. You have many possibilities!

The conclusion

The government cannot keep going like that forever and it is hard to predict when the balloon will burst. We live in a world dominated by debt and this number keeps increasing each second, minute, and day!

Personally, I believe we need to start thinking about putting a plan in place to pay it back. It is not a way of life living and carries a huge amount of debt.

You are a slave when you are in debt, and it is the same for a government. I hope to see drastic changes in the way we manage countries.

PS: It is my opinion. I am not a financial adviser and always do your own research.