If Trump wins the presidency, it will be regarded as a major victory by his supporters. In that event, however, he would likely have to face a debt crisis that is rapidly deteriorating.
Moody’s is an organization that rates bonds. It has issued a statement that the next president will have to deal with budget deficits and our accumulating national debt. The organization warns that our fiscal strength is at risk; and this will impact credit ratings for our national debt. And that would increase our annual interest expense further, causing the situation to snowball.
Zero Hedge had just reported that our national debt increased by $345 billion over a period of several days last week:
Total US debt explodes to $35.7 trillion on Oct 1, up $345 billion from Sept 27. https://t.co/526h8TQ7AS pic.twitter.com/Isw0x0EOww
— zerohedge (@zerohedge) October 2, 2024
Complicating the picture is that the BRICS nations are in the process of introducing a new gold-backed currency to replace the U.S. dollar as the world’s reserve currency. This will create additional challenges; but these BRICS nations sought their alternative currency due to the declining, unstable US dollar caused by our debt picture.
We have a major problem on our hands. Whoever wins the presidency might have to face the fallout.
Wiemar Republic…Deja vu all over again ?
It’s beginning to look that way, Fred. I hope not, but as you know, we have a political class that is not disposed to making the right decisions.