It didn’t make major news, but it should have. The US government borrowed another $724 billion last week when it sold large amounts of government paper. The odd thing is that the Treasury and the Fed appear to be coordinating their efforts in transitioning US debt from long term bonds into shorter term T bills.
This means that the national debt has grown to $37 trillion. Six years ago, we were at $23 trillion. We hit $36 trillion in late November of last year, meaning that this last trillion in debt was borrowed in just 9 months. We are doubling the debt every 8 to 9 years, and have been for decades– since Nixon took us away from the gold standard.
Of course, this sort of thing can’t go on forever, and whatever can’t go on forever has an end. When is the end coming? In 1891 Robert Louis Stevenson wrote a short story called “The Bottle Imp” that reminds me of this.
The story is about a working class native of Hawaii who buys a strange bottle from a sad, elderly gentleman who credits the bottle with his wealth and fortune, and promises the imp in the bottle will also grant the man his every wish and desire.
Of course, there is a catch, as there usually is in these stories — the bottle must be sold at a loss, i.e. for less than its owner originally paid, or else it will simply return to him. The currency used in the transaction must also be in coin (not paper currency or check). The bottle may not be thrown or given away. If an owner of the bottle dies without having sold it in the prescribed manner, that person’s soul will burn for eternity in Hell.
The bottle was said to have been brought to Earth by the Devil and first purchased by Prester John for millions of dollars; it was owned by Napoleon and Captain James Cook but each sold it. At the time of the story the price has diminished to eighty dollars, and declines rapidly over the course of the story to a few pennies.
The problem here is that as the price approaches a penny, it will become harder and harder to sell the bottle, as the buyer will be in fear of being left holding the bag.
This tale reminds me of our current national debt. As our debt increases, the interest payments will balloon. They can only get so large before default is inevitable. At that point, anyone in possession of a US bond will be stuck with worthless paper. Because of this, the returns for these bonds will have to increase, so as to entice people in taking the risk of buying them, which will make the interest payments higher, thus making the end that much closer.
7 Comments
Noway2 · August 12, 2025 at 6:59 am
Reminds me of the old saying: “How do you go bankrupt? Slowly and then suddenly”.
Joe Blow · August 12, 2025 at 8:20 am
I’ve got kids that are at that young adult stage. I tell all of them to take a portion of their paychecks down to the local coin dealer and buy a silver coin (or two, or 3…). When they’re serious, Dad will introduce them to the bullion dealer I buy from.
The USD has eclipsed the point of no return. Gotta grok that. Silver and gold are your only friends at this point. Silver Eagle’s retail for around $45-50 right now, better get some, they’re going to $100.
Honk Honk · August 12, 2025 at 9:16 am
The CBDC Panopticon is for convenience and safety.
Your solar powered Zil Trabant is waiting in the 15m concentration camp.
lynn · August 12, 2025 at 12:37 pm
DOGE is not coming to the rescue.
SoCoRuss · August 12, 2025 at 1:07 pm
Yep, been watching that shit show. You and me are probably the only two guys around doing it or that even still care. That speaks a lot about American intelligence. Guess the big game or latest American Got Talent is on. OH Wait, look there is a new tic tok video trending….
Its now at $1 trillions dollars of debt every 92 days. There is no voting on or fixing this. NO politician of any party has any desire to fix it when they and their families are getting millions for helping it happen.
Probably appox 1 year left. But in my opinion we have until they bring all the data centers online to start the mandatory CBDC prison that all Americans will beg for when this crashes. The new limits on what you can buy such as sugar drinks or food while on food stamps is a test run on the sheeple. See how this is being done on the welfare crowd so it must be double plus goodness to the folks on the right not knowing its coming to them real fucking soon under the we must protect them from themselves crowd.. WHY is this SOOO good? you ask? Because their MAGA Messiah says its the BEST THING EVER DONE. Do what we say and you get this shiny little toy or free stuff.
There are no words left that can express this bullshit that’s been allowed to happen. I truly hope the sheeple and especially the religious conservative right are happy and get what they deserve good and hard.
DM, I understand your previous post about the sugar limits and your sister and I truly get it. BUT my issue is if its so bad health wise then why are normies allowed to have it? People cry about equality but that’s not what they actually seem to want or do, they just want to use it against those they don’t like. The little secret is there wont be any choice after the collapse.
Read or watch the videos on what the WEF has been pushing for 25 years and then look at the messiah’s actions, he is actually doing it and the right is cheering for it.
I don’t remember who said the quote of: Tyranny will come to America wrapped in a flag and holding a Bible and will be met with applause. Words to remember…
Dan · August 12, 2025 at 4:56 pm
Our economic system is structured to run on debt. Which unsurprisingly means we get more and more debt every year. And there is no “fixing” this. It will require utterly destroying the current paradigm and starting over.
SiG · August 13, 2025 at 8:30 am
My only real question these days is which happens first: the economic collapse of the west or Crusades 2.0, Islam vs. the West.
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