Sorry, Uncle! Your Credit Has Been Denied

Have you ever tried to pay for something with a credit card only to have a 17-yr-old cashier give you a stupid look while saying: “So, Um…Like, Um! Your credit has been denied?”

It’s totally embarrassing but something that’s easily resolved by whipping out cash.

The only problem then is that the 17-year-old doesn’t know what to do with cash.

Fortunately, the register will tell them how much change to give you.

Unfortunately, that won’t be the case when the rest of the world eventually says to Uncle Sam: “Sorry, Your Credit Has Been Denied.”

Let’s do some math.

With interest rates at the lowest in recorded history, Uncle Sam has been able to borrow money at 1.5%.

Ironically (or NOT) the historical average rate for borrowing has been just over 4%.

So, our Uncle is getting a great deal, Right?

Wrong.

Corrupt Congress Critters have allowed encouraged the printing of Trillions upon Trillions of “Digital Dollars” to our overly strained balance sheet.

When Will We Hear “Your Credit Has Been Denied?”

At the current rate of 1.5% the interest expense on the USA’s debt is over $450 Billion per year.

Read that line again…slowly.

At 3%, the cost of borrowing – interest only – goes to over $900 Billion.

At the historical average (4.1%) you’re looking at yearly interest expense of over $1.3 TRILLION.

So, it’s not a matter of IF, but it’s WHEN will we hear the rest of the world say, “Sorry, Your Credit Has Been Denied?”

Next year?

2024?

What comes to mind is a quote from Ernest Hemingway’s classic novel The Sun Also Rises: “How did you go bankrupt?”
Two ways. Gradually, then suddenly.”

Such will be the case for the USA with China waiting patiently in the wings.

And it could take up to another decade.

Why?

China doesn’t have a big enough bond market to support being the World Reserve Currency.

But they’re working on it.

Feverishly.

So, what should you expect until then?

First, don’t give up on the dollar, yet.

Again, why?

Because there are more dollars OUTSIDE of America then in the hands of Americans.

Second, learn how prosper AND thrive while we go through Turbulent Times.

And the best suggestion we have is…wait for it…upgrade to our premium content (HERE).

And be prepared for the inevitable.

Share this with a friend.  They’ll thank you later.

And tell them: We’re Not Just About Finance.

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