Somewhere, Dave Ramsey is having an aneurysm.
There's no way for your brain to understand a trillion. So here's a way to think about it:
Say you win a million dollars on a game show. That's the dream, right?
Okay, so now let's say that one million contestants win one million dollars, and that a new batch of one million contestants wins one million dollars every one hundred days.
That's still really hard for our brains to compute, but let's cut it down a bit. Say you live in Nashville, which is just shy of 700,000 people. Imagine that everyone in Nashville, plus 200,000 people in Knoxville, plus a few extra, all became millionaires by the end of May.
Imagine this happens every 3 months: Cincinnati, Indianapolis, Grand Rapids, Omaha, Charleston, Colorado Springs, or a city near you gets picked every 3 months for this "lottery."
Now imagine instead of winning the money, every person in those cities OWES a million dollars.
THAT
IS
WHAT
IS
HAPPENING.
The nation's debt permanently crossed over to $34 trillion on Jan. 4, after briefly crossing the mark on Dec. 29, according to data from the U.S. Department of the Treasury. It reached $33 trillion on Sept. 15, 2023, and $32 trillion on June 15, 2023, hitting this accelerated pace. Before that, the $1 trillion move higher from $31 trillion took about eight months.
Just to make it personal:
(No, I didn't check the specifics on the math, but it's within the ballpark of the $100,000+ that every American owes. Go watch it increase in real-time.)
This chart shows how its just just since 2022:
Best economy ever, Jack!
Spot gold is currently hovering around $2,084 an ounce, while bitcoin was recently around $61,443. The cryptocurrency in February closed out its best month since 2020, briefly trading above $64,000 on Wednesday before pulling back. Inflows into crypto funds are on course for a "blowout year," with an annualized inflow of $44.7 billion so far this year, Hartnett noted.
Moody's Investors Service lowered its ratings outlook on the U.S. government to negative from stable in November due to the rising risks of the country's fiscal strength.
"In the context of higher interest rates, without effective fiscal policy measures to reduce government spending or increase revenues," the agency said. "Moody's expects that the US' fiscal deficits will remain very large, significantly weakening debt affordability."
Oh, did I mention how interest rates work?
If you think it'll stay at 1 trillion every 100 days, wait until it's 1 trillion every 50 days, then 1 trillion every 25 days, then 1 trillion every 14 days, and so on.
Pretty soon, the debt could be so large that it's physically impossible for the nation to pay it off without going totally bankrupt and the dollar becoming worthless.
My advice? You better be getting yourself and your family prepared.
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