The US government debt levels continue to balloon year after year, and currently stand at a staggering $17.8 Trillion dollars.
Soon to hit $18 Trillion.
This should come as a shock to no one, as it has been discussed numerous times in the past, including on this blog.
But what is shocking, is the rate that this increase is occurring and the ramifications that it could have for not only the US economy, but the World as a whole.
Since the 2008 economic crisis.
The US government has drastically increased their debt issued in an attempt to stay solvent.
This has worked, but will only do so, for so long.
To maintain interest levels, and ensure that the debt issued by the FED is purchased by creditor nations.
The maturity of the debt issued has continued to decrease.
This puts the United States in an incredibly fragile position, as the short term year to year debt, that is needed to be rolled each year has exploded to roughly $8 Trillion a year!
You read that correctly, $8 Trillion a year!
Hyperinflation is just a breath away, at any given time it could all come crashing down. Chinese officials know this, they know that they have the US government trapped in a corner.
A simple, no show to a short term debt offering, would result in a huge monetization of debt, as the Federal Reserve steps in to burden the cost.
A burden, they are already overweight with.
This would result in a massive depreciation of the US dollar and a possible loss of its reserve currency status.
Gold would explode in price, like never before seen.
So what happens in this scenario?
What happens when a socialized, welfare state can no longer keep interest rates low and food stamps coming?
A collapse of epic proportions occurs.
A collapse that will make the fall of the Roman Empire, look like an opening act.
This article is brought to your courtesy of The Silver Bug.