Alarm bells should be ringing with the news that the government sold $694 billion in Treasury securities spread over 9 auctions in only three days. Yeah, our national debt now stands at $38.2 trillion. The most alarming thing about this news is that T-bill yields are rising. The 10-year Treasury yield is now at 4.15%. At that rate, the interest on our debt will be more than $1.5 trillion per year. Since Americans only pay about $2.4 trillion in Federal taxes each year, we are edging closer to the point where our debt will begin to grow like a snowball rolling down a mountain.
The only way to keep the government solvent at that point would be to inflate the currency in order to pay it with lower valued money. At that point, inflation will be higher than interest rates, and it will no longer be financially possible to invest in government bonds. This will in turn cause higher rates, which will also create a need for higher inflation. In other words, hyperinflation is the only way out, but that will cause a complete collapse of the US dollar.
Anything you own that isn’t a physical asset will evaporate overnight: currency, stocks, bonds, bank accounts. As you can imagine, the government can’t let that happen, so what they will do to deal with it is the real question…
13 Comments
Iwoots · November 16, 2025 at 2:24 pm
Funny {in a depressing, sad sort of way}.
A few minutes ago I did something I last did April 28, 2025: I pulled out my legal pads; and checked the price of gold, silver, & oil, plus the Dow, S&P, Nasdaq, Global Dow, Baltic Dry Index, and 4 Chinese markets.
Everything except oil and the BDI is overpriced and overvalued.
And then I read your post
This is not sustainable; and will result in a world-wide Weimar Republic hyperinflation beyond anyone’s imagination.
I really, really, really hope that I am wrong.
Steady Steve · November 17, 2025 at 8:00 pm
I beg to differ. Gold and silver are very underpriced as the market is manipulated by paper “trading” that is not backed by actual, physical product owned by the traders.
Anonymous · November 16, 2025 at 3:41 pm
Inflate or Die. Richard Russell. They will inflate because 95% of America is to stupid to understand math and compound interest on the debt.
Jester · November 16, 2025 at 4:38 pm
Just wait till they announce all TSP (Fed and Military form of 401Ks for those that don’t know) and all private 401Ks get nationalized and owned solely by the .gov after they all take a beating when the stock market has a major correction or crash. “Gotta protect the people just like we do and manage Social Security”.
Dan D. · November 17, 2025 at 4:23 pm
“and all private 401Ks get nationalized”
Thank you for reminding me of this possibility. I had “sell the lathe” on my todo list for this week but just took it off.
TRX · November 16, 2025 at 4:44 pm
Printing bad money is the highway to hell. The Chinese ran into it, and the Khans, and Western countries, but nobody ever learns.
“It’s not counterfeit of the Treasury prints it!”
Steady Steve · November 16, 2025 at 6:34 pm
We don’t need to kill the dollar. We need to kill the Federal Reserve and the Blob.
lynn · November 16, 2025 at 9:05 pm
Yup, we are headed to the scenario of the “The Mandibles: A Family, 2029-2047” by Lionel Shriver
https://www.amazon.com/Mandibles-Family-2029-2047-Lionel-Shriver/dp/0062328247/
This is going to suck real bad. Gold seizures are coming soon.
Michael · November 16, 2025 at 10:03 pm
The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.
Ernest Hemingway
Expect a war or false flag when the powers that be decide they are in danger of losing power.
While silver and gold are nice to preserve wealth, food, tools and ability to repair your home, protect your family and what most folks forget keep safe water for your family is better.
An ounce of gold is about 4K. How many pounds of rice, and such might that put away in 5 gallon pails? What does a couple of real water filers cost today?
Not those cute backpacking filters that rapidly clog from surface water impurities, base camp style ones.
How much would someone you trust enough to help and have them help you appreciate having safe water and maybe some food?
Trusted friends and trusted family folks. That keeps your 6 covered when stuff happens, like a twisted ankle or a bad flu.
Anonymous · November 17, 2025 at 2:55 am
What is the tried, tested and true remedy?
War, which brings chaos, famine, pestilence and death. Question is, how many more of these cycles will this world take before we manage to kill everyone and everything?
Mark 13:19-20
[19] For in those days shall be affliction, such as was not from the beginning of the creation which God created unto this time, neither shall be.
[20] And except that the Lord had shortened those days, no flesh should be saved: but for the elect’s sake, whom he hath chosen, he hath shortened the days.
SiG · November 17, 2025 at 8:41 am
Gee, it’s almost like the stuff people have been predicting at least since Nixon buckled to the bankers and got us off a gold standard. Although there were others as far back as 1913 when the Fed was formed.
The Fed has said they want a “constant, benign inflation” of 2% – which I don’t think they’ve ever achieved – it’s always higher than that. Still what’s the result of doing the sum of 1.02 times the input forever? Eventually the sum is “close enough” to infinity that the dollar is worthless. $1 is worth something like 3 or 4 cents was in 1913 now. How much less than 3 cents does it get?
Xoph · November 17, 2025 at 4:02 pm
There is no benign inflation for Joe Citizen, only for the govt. For you and I our money is worth less. To the Govt, their debt is worth less.
Your money will never buy more than today. Get what you can while you can. And check your local community college for skills training. Lots of good night classes.
Monday Early Edition – Western Rifle Shooters Association · November 16, 2025 at 10:11 pm
[…] https://areaocho.com/alarm-bells/ […]
Comments are closed.