What the Land of the Free needs right now is someone who can stop beating around the bush and just get on with it already and that someone is Donald Trump because he is an expert at declaring bankruptcy. When the going gets tough, Trump stiffs his creditors – he’s done it four times – and such experience would come in handy during the next presidential term. The U.S. government is bankrupt and default is inevitable. Who better to oversee such an event than Donald Trump!
The above comments, and those below, have been edited by munKNEE.com (Your Key to Making Money!) for the sake of clarity  and brevity (…) to provide a fast and easy read and have been excerpted from an article* by Simon Black (sovereignman.com) originally entitled The #1 reason why Donald Trump is the chimpanzee America needs and which can be read in its unabridged format HERE.
The hard reality that most people don’t seem to get is that the U.S. government is bankrupt. This isn’t some wild assertion or conspiracy theory; their own financial statements show that the government’s ‘net worth’ is NEGATIVE $17.7 trillion – and yes, the U.S. is already borrowing money just to pay interest.
A default is inevitable. The calculus is quite simple: when governments take on too much debt, they start having to divert a huge amount of their tax revenue just to pay interest. This means that, at a minimum, the government has to sacrifice many of the promises they made to their citizens. They cut other programs in order to have enough money to pay interest.
Cutting programs is not too popular, though, so governments typically just borrow more money until they’re borrowing money just to pay interest on money they’ve already borrowed which only makes the problem exponentially worse – debt skyrockets – and soon the government is spending more on interest payments than national defense. (The U.S. is almost at this point).
Eventually a bankrupt government has no choice: either default on their bondholders, or default on the obligations they made to their citizens – or both. This could take the form of a ‘selective default’ in which the government could default on:
- the $2.4 trillion that it owes the Federal Reserve or
- the $1.2 trillion that it owes China.
The above are both possibilities but the prospect of default on “risk free” U.S. government bonds would throw the global financial system into a tailspin; not to mention it would be the final nail in the coffin for the U.S. dollar’s dominant reserve status.
Fortunately there are easier options for Uncle Sam. The biggest debts that are owed by the U.S. government are:
- the obligations they owe to you, nearly $42 TRILLION, like Social Security and Medicare they promised to American taxpayers or
- the obligation they have to preserve the purchasing power of the $12 trillion held by the American people – the current value of the money supply in the United States right now.
History shows that debasing a nation’s currency is one of the easiest and most effective ways for bankrupt governments to plunder their citizens’ wealth, little by little, over time.
Nations that pass the economic point of no return can’t rebuild until they hit rock bottom and the U.S. is way past that point so let’s get on with it already and hit the reset button.
When things get this dire, it doesn’t matter who sits in the chair. You might as well elect a chimpanzee in the hopes that Mister Bubbles might accelerate the decline. Donald Trump may very well be that chimpanzee – especially given his unparalleled experience in declaring bankruptcy.
Join me for more in today’s podcast as I break down the details of the US government’s $60 trillion in liabilities– and what you can do about it.
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