We are caught between a debt crisis and an inflation crisis
It’s said that a person often meets his fate on the road he took to avoid it. Washington, D.C., has spent most of the last half-century using the federal debt to prove that maxim.
TL;DR
- Federal revenues as a share of GDP are at their 50-year average, indicating overspending rather than an undertaxation problem.
- Foreign investors hold approximately $9 trillion of federal debt, and the Federal Reserve has printed money to cover shortfalls, contributing to inflation.
- The U.S. is now facing a dual crisis of debt and inflation due to unsustainable spending.
- The only remaining solution is to cut federal spending and reform entitlements.
- Government spending competes with families and businesses for credit, making it harder to achieve goals like homeownership.
- Entitlement programs are driving most of the spending growth, yet reform is off the table.