I’ve argued for five years that the U.S. National Debt is too great to ever be repaid in full, or even by half. My personal guesstimate is that at least 80%–and probably 90%–of the National Debt will inevitably be repudiated. That repudiation will take the form of hyperinflation, express repudiation (“Sorry, boys–but we’re too broke to pay that debt.”), or perhaps even WWIII (a good war could wipe out virtually all memory and enforce-ability of the National Debt.).
Here’s a graphic that illustrates my argument. If you take a few minutes to view the graphic, you’ll see the size of the U.S. National Debt is:
1. Larger than the 500 largest public companies in America;
2. Larger than all assets managed by the world’s top seven money managers;
3. 25X larger than all global oil exports in 2015;
4. 155x larger than all gold mined globally in a year; and, my personal favorite:
5. Larger than all of the world’s physical currency, gold, silver, and bitcoin combined.
In other words, there’s not enough actual money and currency in the world to repay the U.S. National Debt.
Read the rest of this entry »