What I have not mentioned, is the overall size of American debt.
Capitalist Eric says In 2013 the on-book national debt was an estimated $16 Trillion. Using Generally Accepted Accounting Principles (GAAP), which includes all off-book obligations (promises of future payments such as Social Security, government retirement accounts, Medicare A & B, etc...) was $238 Trillion.
Today the on-book debt is $30.3 Trillion, not quite double what it was when I last wrote about this. We can reasonably assume the total debt according to GAAP is similarly doubled, all in at $450 Trillion.
The rest of the world loaned us vast sums, because the dollar was the worlds’ reserve currency. And that worked, when the USA produced things of inherent value.
As I have said very recently, In 2000 Clinton thought he could balance the budget by exporting the manufacturing base of the USA to China, not realizing that he would not have anything to sell to the Chinese to pay for it!! So America started the printing press as a solution to the payment problem!
If people realise that their pensions, social security, medicare cannot be paid, or all paid very soon, there will be a lot of panic!
I have already fully dealt with Russia charging in Rubles and gold and China paying for their oil in Remnimbi, and India and Iran, the BRICS countries and Venezuela joining together in an economic cartel of sorts, and all transacting in non Western ($ and €) currencies.
What Capitalist Eric says Putin basically said, ‘you cut off our access to your currencies, you STOLE our money, and yet insist we accept your euros or dollars, through a system we can’t even access…? NO. You need natural gas, you need oil? Fine, you pay for it with either OUR rubles, or gold.’
Russia has been stockpiling food, and last week Putin announced to his people on Russian TV that the country had five years of food stockpiled, so they need nothing from the USA- or frankly, anyone else. China has stockpiled 18 months of wheat to feed their people, but their agents are busily moving around America buying any stored wheat they can get their hands on- by the trainload, at whatever price they have to pay-and sending it on cargo ships back to China.
Here is the part that I have not stressed (Capitalist Eric shows pictures of starving people and rants on about starvation and wheelbarrows of money to buy a loaf of bread etc…) is that when hyperinflation hits the $ and €, and it is sort of happening now, everything will go up in price in a huge way. (effectively the value of the Fiat currencies are going down! – two sides of the same coin!).
The second thing that will happen/is happening already, is that a range of commodities and foodstuffs will ramp up in price, and more importantly, become unavailable!!
So start a market garden in your back yard, and buy seeds (ensure they are not GMO!!)
I am reading a lot of stuff saying the US$ could collapse before the end of May 22. One of the things that will happen, is that the value of good real estate, gold and silver, commodities, oil , Crypto currencies (all of which are measured in FIAT money terms) could skyrocket, some of which may be real, but some is because the FIAT currencies will be losing their value. It does not matter which, but GET RID OF YOUR FIAT BANK BALANCE AND CASH, because they will become worth almost nothing. Put some of your money into base foodstuffs.
This is not panic talk, just suggesting a realistic, pragmatic approach.