The deep fiscal and monetary structures of the US economy, which have not changed in 200 years, will generate the next boom and bust just as they have done so in the past. But the Crash of 2026 will be much worse than that of 2008 because as the US government continues its annual trillion-dollar deficits, by 2024, the US debt will have grown so large that US bonds will no longer be considered safe, and in the financial crisis, the US will no longer be able to borrow the funds needed to bail out the financial firms.
Fred Folvary, from “The Depression of 2026” (2012)
He who promises runs in debt. —The Talmud
Long-term fiscal projections by GAO, CBO, and in the 2019 Financial Report show that absent policy changes, the federal government continues to face an unsustainable long-term fiscal path.
The Debt
Capital flight to the United States – already at record levels pre-coronavirus – has only accelerated. As one might expect, when the Americans finalized their plans for $2.2 trillion in deficit spending, the U.S. dollar dipped for the first time in the crisis.
Collapse
Excerpted from my 2021 book, After Collapse.
Editors Note: The U.S. national debt now stands at more than $35,006,892,939,492. Interest on the debt is now the highest federal expenditure, more than Medicare or Defense. It is unsustainable.
Max Borders is a senior advisor to The Advocates. See more of his work at Underthrow.