America’s national debt continues to grow with almost no measures available to keep it in check, which means that at some point in time, the U.S. dollar is almost guaranteed to fail. There are seven key signals that are pointing to that very end, suggesting that the collapse of the dollar could be right around the corner.
You’d think this sort of thing would alarm our leaders and lead to swift policies changes that would help stem the tide and reverse course, but alas, that’s not what’s happening. Left-wing politicians seem almost hell-bent on going pedal to the metal toward economic destruction, looking for ways to create new programs that would eat up more of the budget we already do not have, increasing the national debt and causing more spikes in inflation.
What are these seven signs of impending collapse?
The first is federal budget deficits. According to Prophecy News Watch:
One of the clearest signs of economic instability is the massive federal budget deficit. Despite optimistic projections that rely on implausibly smooth conditions–no wars, recessions, or emergencies–U.S. debt is projected to grow by $22 trillion over the next decade. With each economic shock or policy shift, these optimistic estimates become even less realistic. The American government, it seems, has become so comfortable borrowing that repaying this debt is an afterthought. Such soaring deficits can destabilize the dollar by making it less attractive to foreign investors, especially as interest on this debt crowds out critical public spending. The most disturbing aspect of these projections is the near certainty that deficits will only accelerate over time, locking the U.S. into a vicious cycle of borrowing.
The second sign pointing toward the collapse of the dollar is the ballooning federal debt. Our country’s debt is currently standing at a whopping $35 trillion, which exceeds 123 percent of our nation’s GDP, which has created a massive burden for Americans. Our government has become so infatuated with spending money that despite all logic pointing to the contrary, they believe spending money you don’t have is a “positive” in GDP.
In reality, government spending on interest payments and debt-financed projects only deepens America’s financial vulnerability. The real economy supporting the debt–the economy of workers, businesses, and production–is already strained under the weight of this spending spree. And as this cycle continues, the true strength of the economy, relative to debt, is much weaker than headline figures suggest.
Next up is the increase in federal interest expense. Guess how much money it costs to service our country’s national debt? Try $1 trillion a year, which exceeds all of our other expenditures, including what we spend on national defense. Our biggest expense is not providing education for our citizens or health care, or even infrastructure. It’s interest on our own debt. We are extremely close to spending more on debt than we do on Social Security.
Fourth is the federal funds rate and America’s struggle with inflation. The Federal Reserve made a desperate attempt to alleviate inflation in 2022 by entering one of the steepest rate-hike cycles in modern history. We had near-zero rates at the start, but 18 months later, they were over 5 percent. And there were many devastating consequences of walking down that path, such as when rates went p, the interest burden for the government increased, which then forced the Fed back to making rate cuts.
“The inability to sustain higher rates, even when inflation persists, suggests that the U.S. economy is no longer resilient enough to weather the fallout from responsible monetary policy,” the report said. “This cycle of low rates followed by frantic hikes and cuts only makes inflation harder to control, creating a volatile environment that could further erode confidence in the dollar.”
Another sign that the dollar is on its way toward collapse is the condition of the money supply and currency debasement.
The Fed’s tools of “currency debasement and gaslighting,” as critics would say, are thinly veiled attempts to inflate the money supply in a bid to control debt interest costs. When money is created “out of thin air” to buy up government bonds, inflation inevitably follows, eroding purchasing power and widening inequality. The result is a world where many Americans struggle to stay afloat financially, watching as their real wealth erodes amid skyrocketing prices and stagnant wages. Those whose wealth hasn’t grown by at least 37% since 2020 may already be falling behind, losing ground in an economy that penalizes prudent saving and rewards speculative investment.
The sixth sign were’ headed for trouble is the CPI as a misleading inflation measure.
The Consumer Price Index (CPI), long relied upon as a measure of inflation, has come under fire as being misleading. Designed to provide a snapshot of “average” price increases, the CPI doesn’t account for the diverse realities Americans face. Cost-of-living pressures in metropolitan centers differ vastly from those in rural areas, and yet all are squeezed into the same “basket” of goods for reporting purposes. Critics argue that selective weighting and item choice skew the results, creating a narrative that inflation is “under control” when, in reality, most Americans experience far steeper price increases.
Finally, there’s the current prices for gold and how folks are seeking to escape from fiat currency and find stability. Gold is one of our greatest defenses against the collapse of currency. A government can inflate a fiat currency any time it wants. This cannot be done with gold as there is a finite supply of the precious metal. When the economy looks like it does right now, investors look at gold as a safe place to put their wealth. With the cost of gold going sky high, many central banks around the world have begun to increase their supply of gold.
The report from PNW concludes by saying, “None of these seven indicators on their own might signal imminent collapse. But together, they form a compelling case that the U.S. dollar’s stability is anything but secure. While policymakers and officials continue to downplay concerns, the growing federal debt, rising interest expenses, and manipulated inflation measures paint a troubling picture of an economy on borrowed time.”
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