“This is obviously going to end badly as we are already bankrupt and nobody seems to acknowledge that fact.”
It is the federal govdernment debt that is the big problem, more than debt across the nation overall. And there are some things that could be done to actually reduce the federal debt, and they would be huge changes, but most likely our political class most of all lacks the will to agree to them.
1. We can eliminate some whole federal departments, taking those savings for several years to help pay down the debt, with them annually budgeted as such.
2. We can sell - to U.S. citizens and U.S. companies only - millions of acres of federal lands, much of it containing fossil fuel and mineral depostits as well as arable land private owners could farm as well as land that could welcomly be developed by private owners and investors. We can take 100% of the proceeds to help pay down the debt, using it for nothing else.
3. We can reduce the budgets of all necessary federal departments, other than defense, by an across the board 10%, using all of that for several years for paying down the federal debt, and budgeted so.
4. 1 and 3 could be modified once the federal debt reached a specific ratio with the GDP, but kept in place as part of the federal budget until then.
These are things the President of Argentina is doing now.
Argentina was once the third wealthiest country in the world. Then “big government” kicked in, whether it was fascist or communist, and the whole thing fell apart.
https://en.wikipedia.org/wiki/Javier_Milei
“ It is the federal govdernment debt that is the big problem, more than debt across the nation overall.”
Wrong.
It is the use of unsecured debt as money that has created a crisis. It is perfectly apparent that most outstanding debt (Federal, State, credit card, auto loan, student loan, mortgage, HELOC, I’m sure I missed some) - that debt in the aggregate will never be repaid.
What has not been apparent until recently is that the attributed revenue stream of bad debt would be used to create new money, and that the creators of this new money would shrink in number as they would grow as possessors of paper wealth that then could be exchanged for tangible things like land.
This has happened many times before in history, and it always ends badly. Depending on how things go, the usurers may very well need their private submarines and bunkers on the South Island before it’s all over.
Each individual must be careful not to rely on future debt forgiveness - although it is a certainty, when, where, and how are unpredictable. Don’t lose your car to the repo man waiting for the Jubilee.
But the system is unsound any is nearing its inevitable end. If your security relies on revenue streams from debtors, remember that usury was a crime until recently in the US and has always been a sin for Christians and Muslims.