Interest payment recently eclipsed the defense budget as our nation's single largest expense.
Discussion
I watched a lot of Penn Gillete videos about 15 years ago.
In one vlog, he said the US would pay more in interest than the military or welfare, or something like that in about ten years.
Here we are.
**It's just math**, like calculating the distance to the moon.
Fiat maxis don't have an answer. Most don't even see the problem.
There are only two options at this point:
1. default and reprice the debt, which would be devastating to the entire financial world.
or...
2. Inflate away the value of the debt with massive monetary debasement, which is also devastating, albeit in a slower more insidious way.
I can tell you they will go with option 2.
Well yeah. That's why we're here. 🤙