Gov’t Interest Expense Exceeds Military Spending

Regardless of how you feel about our armed forces, military spending now makes up our nation’s second largest expense.

But at the pace we’re going, it will soon be our #1 expense.

Currently, our #1 expense is interest payments owed on our debt.

And the two major factors are:

 

• Excessive borrowing (Printing Trillions of new dollars)

• Dropping interest rates to the lowest in 5,000 years.

Both have been desperate attempts to keep our financial system from collapsing in the last decade.  (Thanks mostly to Greenspan/Bernanke).

The numbers are staggering.

But let’s put them into perspective.

The US military spends more money every year (making weapons and supporting our troops around the globe) than the ten largest competing countries combined…Including Russia and China.

And thanks to the War in Iran, we will be adding billions just to replace what has been used in the last month alone.

However, interest expense on our national debt is crowding out everything else.  And rising interest rates is like throwing gasoline on a towering inferno.

Welcome to the Sovereign Debt Crisis.

Like it or not, it’s in play and there’s no way to stop it.

But, Hey!  What’s a few Trillion among friends?

Besides, Europe and Japan are worse off than we are, Right?

Correct.

And they’ll default on their debt before we do because all governments borrow money knowing they’ll never pay it back.

 

For the record, you don’t have to be a history buff to know this.  All you need to do is look at how every empire in history has crashed.

They collapse under the weight of their own debt.

The Roman Empire couldn’t pay their military (world’s largest) when they defaulted on their debt.

Roman troops then began ransacking cities to compensate for their lost pensions.

Hmmmmm!

So, here we are facing rising interest rates and no way of mathematically paying off our debt.

If you own bonds (especially bond funds or ETF bonds), it’s time to wake up and smell the coffee.

War creates debt at a frantic pace.  And along with it comes more inflation, higher costs of living and a much higher increase of interest on our debt.

It’s the 800 lb. Gorilla in the room that the Boyz in the “Club” don’t want you to know about…until it’s too late.

But we want you to know.

So, learn how to avoid the crushing grip of the Sovereign Debt Crisis in our April newsletter (HERE).

Share this with a friend…especially if they’re caught up in the Proxy War in Iran (like most people). They’ll thank YOU later.

And tell them:

We’re Not Just About Finance

But we use finance to give you hope.

“And you shall know the truth, and the truth shall make you free.”

~John 8:32~