RED ALERT: Heritage Foundation gives us only a “few years” until all tax revenue must be spent on debt

I and many others keep trying to alert Americans to impending financial disaster from deficit spending.

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Here is another attempt using a different set of numbers and projections.

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https://www.heritage.org/.../american-taxpayers-are-now....

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Read my lips, and those of the U.S Treasury. We now collect $4.7T in taxes annually.

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https://www.usdebtclock.org/
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Interest on the national debt, which is the cumulative deficits since around 1992, is now 40% of that $4.7 T. It has been worse. The worst it ever got was when Reagan and Bush I were presidents. The best it has been since then was during the Clinton administration, because of the idiotic dot-com boom, not because of Clinton wise policies.

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Here is a graph of the ratio of tax revenues to interest paid on the national debt:

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Takeaway#3 in the Heritage Foundation media release linked to above is:

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“If federal finances continue on their current path, we are only a few years from the entirety of income taxes being needed to finance the debt.”

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When is “a few years?” 2027. That year, ALL of tax revenue we collect will be spent on interest on the national debt. So where do we get money to pay social security, Medicare, defense and the rest of the government?

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Nowhere. When 100% of the tax revenue goes to interest, no one would buy a US Treasury bond. The president will order the Fed to buy the new bonds with money it does not have. That will tip the US dollar in boundless inflation.

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Everyone sentient American has known the day when we need to pay the piper was coming. Well, it’s here.

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America has long needed to cut back on deficit spending and pay DOWN the national debt. That requires the opposite of deficit spending—running a SURPLUS.

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How do we do that? Cut spending. On what? Social security and medicare and defense are the only spending categories big enough to matter.

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Are we going to cut those? Not a snowball’s chance in La Jolla.

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So what happens? Hyperinflation. Which, in turn, gives Congress and the President no choice but to cut the spending because they will not be able borrow real money from anyone on earth and no one will accept the hyperinflated US dollar.

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Initially, Congress will outlaw your possessing or using bullion gold or foreign currency. See Executive Order 6102. Specfically, they will order you to sell those two categories of assets to the US Federal Reserve within 30 days and pay you less than market value for them. They did it before.
 https://en.wikipedia.org/wiki/Executive_Order_6102

That law is called capital controls. People will start starving with no money to use to buy food, fuel, and medicine and store shelves will be empty because of price controls and anti-hoarding laws.

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That situation will end overnight either because the government will rescind the law against gold or foreign currency—which means Americans would start using Canadian dollars or euros or Swiss francs, etc.—or because the US government issues a new dollar that has some story that Americans and other correct. But deficit spending will not be allowed by the world financial market. So the US government will collect $5T in taxes but they will only be able to fund basic government services like defense, federal courts, State Department, FBI, border. Entitlements lie social security, Medicare, Medicaid, unemployment will simply not continue.

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That will cause a horrific upheaval in the US with screaming finger pointing.

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I can do that with my CAD bank accounts and my AUD and NZD bank accounts. Most Americans have not followed my advice to have such bank accounts and as a consequence, they will be denied entry into Canada or any other nation.

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I recommend you also read my article The Day he Dollar Dies.

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This is a horrific financial storm on the horizon. Neither the politicians nor the media will admit to it.

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Word to the wise.