The world is buried under record debt levels and the global economy can’t function in a high interest rate environment. The Federal Reserve recently surrendered in its inflation fight. But price inflation is nowhere near the 2% target. Why did the Fed raise the white flag prematurely? One of the major reasons is debt. The world is buried under record debt levels and the global economy can’t function in a high interest rate environment. Fed officials know that and it is certainly one of the reasons they don’t want to raise rates any higher and hope to bring them down as soon as possible. Over a decade of easy money policies incentivized borrowing to “stimulate” the economy. As a result‚ governments‚ individuals‚ and corporations all borrowed to the hilt. That was all well and good when interest rates were hovering around zero‚ but when central banks had to hike rates to battle the inevitable price inflation‚ it pulled the rug out from under the borrow-and-spend economy.Alex Jones' latest bestselling book 'The Great Awakening' is NOW AVAILABLE! Secure your limited edition autographed today! Governments around the world are feeling the squeeze as they try to deal with trillions in debt in a rising interest rate environment. According to projections by the International Monetary Fund (IMF) global government debt will hit $97.1 trillion in 2023. That represents a 40% increase since 2019. By 2028‚ the IMF projects that global public debt will exceed 100% of global GDP. The only other time global debt-to-GDP was that high was at the height of the pandemic lockdowns. Americans like to brag about being number one. Well‚ when it comes to debt‚ they’re right. The US national debt makes up 32.4% of the total global government debt. According to the IMF‚ America’s debt-to-GDP ratio stands at 123.3%. This chart by Visual Capitalist captures the extent of the problem. THE DEBT SPIRAL Unless governments dramatically cut spending and/or raise taxes‚ this debt spiral will only get worse‚ especially if interest rates remain elevated. The situation in the United States underscores the problem. The national debt blew past $33 trillion on Sept. 15. Just 20 days later‚ it pushed about $33.5 trillion. It is not just a tick below $34 trillion. Meanwhile‚ interest expense rose by 23% to $879 billion in fiscal 2023. Net interest‚ excluding intragovernmental transfers to trust funds‚ rose by 39% to $659 billion. Both of those numbers broke records. Rising interest rates drove interest payments to over 35% as a percentage of total tax receipts in fiscal 2023. In other words‚ the government is already paying more than a third of the taxes it collects on interest expense. The federal government spent $79.92 billion in interest expense to finance the national debt in November alone. That was more than national defense ($70 billion) and more than Medicare ($79 billion). The only higher spending category was Social Security. Interest expense is only going to grow. A lot of the debt currently on the books was financed at very low rates before the Federal Reserve started its hiking cycle. Every month‚ some of that super-low-yielding paper matures and has to be replaced by bonds yielding much higher rates. The weighted average interest rate on the government’s $26 trillion of outstanding Treasury securities rose to 3.10% in November. That compares with a weighted average rate of 2.22% in November 2022. The bottom line is interest payments will continue to quickly climb much higher unless rates fall. Financial analyst Jim Grant doesn’t think that will happen. He thinks we’re at the beginning of a generational bear market in bonds that will keep rates higher for the next several decades — no matter what the Federal Reserve does. His analysis makes sense. As governments around the world struggle to finance more and more debt‚ the supply of government bonds in the market grows. That puts upward pressure on interest rates. Even if central banks try to push rates down‚ it will be a constant tug-o-war with the markets. That means the only way out of this fiscal death spiral is significant spending cuts. And we all know that the likelihood of significant government spending cuts is pretty close to zero. The fuse is on a slow burn but at some point‚ the debt powder keg will blow. The results won’t be pretty. EXCLUSIVE: DHS Intelligence Officer Blows The Whistle On Massive Islamic Terror Invasion

The administration and its mainstream support network insist the economy is strong. They often point to the “resilient” American consumer as proof that the economy is plugging along. After all‚ how can the economy be bad if people keep spending money? Peter Schiff recently appeared on Real America with Dan Ball to talk about the state of the US economy. He described it as a disaster and said Bidenomics consists of putting lipstick on a pig. The administration and its mainstream support network insist the economy is strong. They often point to the “resilient” American consumer as proof that the economy is plugging along. After all‚ how can the economy be bad if people keep spending money? But how have Americans managed to keep up with rising prices? Peter said people have made ends meet in two ways. “First‚ you mentioned a few million jobs that have actually been created during the Biden presidency. Well‚ those jobs went predominantly to people who already had jobs. … Moonlighting is at a record high in America. So‚ people are paying these higher prices by taking on second and third jobs and giving up their leisure. The other way they’re doing it is by borrowing more money.”Alex Jones' latest bestselling book 'The Great Awakening' is NOW AVAILABLE! Secure your limited edition autographed today! Consumer credit data backs up Peter’s second point. Even with interest rates at over 20%‚ credit card debt is at record highs. The problem with borrowing is the money eventually has to be paid back and that’s starting to become a problem. Auto delinquencies are surging. People can’t even afford to make their car payments.” Meanwhile‚ saving levels have fallen into the basement. As prices skyrocketed last year‚ Americans blew through their savings to make ends meet. Aggregate savings peaked at $2.1 trillion in August 2021. As of June‚ the San Francisco Fed estimated that aggregate savings had dropped to $190 billion. In other words‚ Americans ate away $1.9 trillion in savings in just two years. The savings are gone. They went for rent. They went for food. They went for insurance and other costs that keep on going up.” Peter called the US economy “a disaster‚” and he said that’s what the Federal Reserve and Jerome Powell just surrendered in the war on inflation. He knows he can’t raise rates anymore. He needs to prop it up by creating more inflation.” During the Q&;A session after the December FOMC meeting‚ Powell conceded that the Fed needs to start cutting rates long before the CPI gets to the 2% target. He said that even in 2026‚ he expects inflation to be 3%‚ which is still 50% higher than 2%. But the reason he said he wanted to start cutting in advance is he didn’t want to ‘overshoot‚’ meaning he didn’t want inflation to go below 2%. Why not? I mean‚ Americans could use some relief.” Peter said the idea that the economy is strong is a myth perpetuated by the government like propaganda. They’re trying to dumb us down and brainwash everybody into thinking that a weak economy is actually strong.” Dan rhetorically asked how the pundits on the mainstream financial news networks can sit in front of their audience and lie. Peter said they are a part of the establishment‚ and they have a vested interest in perpetuating the narrative. So‚ that’s what they do. They have a very cozy relationship. These major networks get all these guests coming on from the administration. So‚ in order to get the guests‚ they have to give them these softball questions.” Peter said that’s exactly what Powell is doing. Powell lied today when he said that he does things that are in the best interest of the economy and not politicians. Everything he’s doing is political. The economy takes a back seat to reelecting the incumbent party‚ which is the Democrats‚ which is Biden. So‚ everything Powell is doing‚ the goal is to reelect Biden. Hopefully‚ the public won’t allow him to achieve that goal.” Peter said “Bidenomics” is just putting lipstick on a pig. The public isn’t buying what they’re selling. They should be buying gold‚ especially now that the Fed has surrendered. Everybody is pretending that the Fed just won the fight against inflation. If you thought inflation was bad now‚ wait until you see how much worse it’s about to get now that they’ve claimed victory.” EXCLUSIVE: DHS Intelligence Officer Blows The Whistle On Massive Islamic Terror Invasion

Western currencies have almost been completely phased out in Russia-China trade‚ as nearly all payments between the countries are now carried out in rubles and yuan‚ according to russina Prime Minister Mikhail Mishustin.

by Mike Adams‚ Natural News: The following is a partial transcript of Brighteon Broadcast News for December 19‚ 2023‚ in which Mike Adams interviews Christopher Busby‚ a physicist‚ science paper author and investigator into both depleted uranium and neutron bombs. The full broadcast and interview will be found at this link: Brighteon.com/channels/hrreport Welcome to Brighteon Broadcast […]

by Paul Craig Roberts‚ Paul Craig Roberts: The GEOFOR editorial board asked Paul Craig Roberts‚ Chairman of the Institute for Political Economy (USA)‚ a PhD in Economics and US Undersecretary of Treasury in the Reagan administration‚ to give his assessment of the political situation in the US and whether a candidate other than Biden could […]

from Bannons War Room: TRUTH LIVES on at https://sgtreport.tv/

by Derek Hunter‚ Townhall: Honestly‚ when I saw the story of the sex tape filmed in the Senate‚ I was a little confused. I thought‚ how could a crew get in there to film it‚ even guerilla style? Having worked there‚ I know you can get away with a lot‚ but this seemed like a […]

by Belle Carter‚ Natural News: What is worse than having a bank cut off a loyal client? Not knowing the real reasons why suddenly one is unable to access the online banking app and credit card transactions are not going through. “I’ve been a Chase client for 18 years. It’s been my primary account and […]