In 24 years, our population has grown 18%

But our money supply has grown 312%, or 13% per year. This is called INFLATION. Inflation is not an increase in prices, contrary to what we are led to believe. It is an increase in the supply of money. The price increase comes after.

When you artificially inflate the supply of money, you make the money less valuable. It takes more money to purchase the same amount of goods and services.

This is not natural. It is an invention dating back to Roman times, but institutionalized here with the creation of the Federal Reserve, which is not a government entity but a cartel of private banks. Although, one might think the Fed is a government body based on its name and the fact that the Government seems to influence or dictate Fed policy. 

Rather than dive into the Creature from Jekyll Island known as the Fed, let’s get back to the numbers, because again, this is all you need to know.

It gets worse. While our national debt is 35 trillion, that’s not half the story. $35T is what we already charged on the national credit card. But what about all the money that the government (ie. taxpayer) is on the hook for in the future? What about future liabilities like Medicare, Medicaid, Social Security, Veteran’s benefits, and every sort of Government pension? Are those programs funded in the future?

Of course we all know they’re not. Again, according to the Government’s own data, which is notoriously inaccurate and rose-colored, our UNFUNDED liabilities are TWO-HUNDRED FIFTEEN TRILLION DOLLARS.

That means we would need $215,000,000,000,000 sitting in the treasury right now, earning treasury rates, in order to pay your or your children’s’ or grandchildren’s’ Social Security and other entitlements in the future. They’re “unfunded” because there is a deficit between what the Government expects in future revenues compared to what it will have to spend.

Is our 10% approval-rating Congress working to solve the problem?

Of course not. This is an election year. How much have you heard about our debt problem from either party?

The Government’s reprehensible spending spree will continue.

In 2028, the national debt is predicted to be $47 trillion, in 2032, $64 trillion. It took nearly 200 years for the United States to amass its first 1 trillion in debt. Our debt went up 1 trillion in the last 90 days.

Unfunded liabilities in 2032? $398 TRILLION dollars! That’s $1,115,030 of debt for each and every citizen!

These numbers reflect the current budget trajectory. What will happen to our debt and unfunded liabilities as never-ending climate initiatives become introduced, or reparations, a “basic living wage,” or cancellation of billions in student debt? What about Black Swan events, like hurricanes, terrorist attacks, wars, energy crises, or pandemics?

Won’t the Government want to spend even more money to “solve” those problems, leading to even more inflation and higher prices?

You see, you don’t need to be an expert to understand what this means. You just need to be awake and have the most basic understanding of math.

The government can’t tax its way out of this mess. Taxes will go up, in every conceivable way (income tax, fees, tolls, licenses, fines, parking tickets, certifications, inspections, etc). But the only way for the government to pay your $3000 Social Security check in the future is to print so much money that $3000 is really $1000.

If that’s the case, is the answer to throw everything into the stock market, hoping that it will go up 10% a year but knowing that it could go down 50% in any given year? Instead, wouldn’t it be wise to make sure your money is as efficient as it can be, where one dollar can do the work of more than one dollar?

Would you want to turn an unlimited amount of taxable funds into tax-free savings and income? Would you want this money to be reliable and certain, or unpredictable? Finally, would you want to pass what is left to your beneficiaries tax-free, or would you want the government to get its hands on it first?

If you’re looking for efficiency, safety, guarantees, and certainty – while still being able to take advantage of economic opportunities – give me a shout!

US Debt Leads to Higher Taxes and Prices – April 2024 (Pdf Download)

Disclaimer: This newsletter represents the opinion of Arieff Consulting, Inc, and does not constitute financial, tax, or legal advice.

All data from this newsletter can be found on usdebtclock.org, including the mobile app.