If the United States and its economy were a married couple… the bank would be knocking on the front door.
Things are bad.
But they’re about to get a whole lot worse.
What’s happening is critical Know-How for every American. Whether you invest… are retired… or ever plan to retire… pay attention to the news over the next three months.
What the Federal Reserve does next will reveal the economic fate of our nation.
What’s happening is unprecedented.
At the very same time the federal budget deficit is exploding like we’re paying for a massive war (few times in our history have been so peaceful, by the way), the fine folks at the Fed are ramping up the costs of all that borrowing.
It’s a recipe for disaster.
While most folks in Washington fret about the political fallout of a government closure and what they want to do about a hard-to-handle president, the real emergency is happening behind the headlines.
Many folks are now seriously wondering whether Uncle Sam has maxed out his credit card.
The latest projections from the bean counters at the Congressional Budget Office paint a picture nobody wants to look at.
For those with the stomach to handle such grotesque figures, the numbers are ominous.
Interest costs are about to sink this country.
Right now, Washington pays some $315 billion each year in borrowing costs. That’s a lot.
But it’s soon going to look dirt cheap.
That’s because the figure is expected to nearly triple over the next decade. By 2028, our annual interest expense will total $914 billion.
In other words, over the next 10 years, we’re going to spend $6.9 trillion for nothing… mere interest on money Washington has already borrowed and long ago spent.
This chart from the Peter Peterson Foundation (founded by the fiscal hawk and investing great that also started the Blackstone Group) shows the trend.
But there’s an even scarier chart.
Look closely and you’ll see it shows the true fate of our nation. It proves we’re marching from a country that provides for its people to a nation that must take from its people.
It will have no other choice.
The chart shows that today’s youngest generations will no doubt see an incredible shift in the way America functions and thrives.
Interest Above All Else
Today, the interest on her debt is one of America’s smaller expenses. It’s well behind what she spends on Medicare, Social Security and national defense.
But as debt swells and interest does what interest does so well (compounds), it will dominate Washington’s annual spending.
Soon what we pay on old debts will outweigh everything else.
It’s big trouble.
And it’s why the Federal Reserve has been in the news so much in the last few weeks. The nation is finally realizing that Jay Powell and his fellow money maestros are in a trap.
It now knows the Fed has lost its ability to raise rates… that if rates return to “normal,” America’s debt doomsday will come sooner than anybody ever thought.
The Fed is now powerless and desperate.
It’s no good.
Again, whether you’re an investor, a retiree… or ever want to retire, this is a problem you must not ignore.
The bankers are at the front door.
They’re not happy.
P.S. We expect a shocking (and painful) announcement from the Federal Reserve when it meets on March 20. That’s why we recently put together a five-step “survival” plan. Click here for all the details of what you must do RIGHT NOW to prepare.