America’s Debt Crisis Goes Into Overdrive

May 19, 2025 • 46 second read

The GOP’s spending bill isn’t quite yet ready for a vote. However, based on the current proposals, total debt could increase from $3.3 trillion to $5.2 trillion.

That may be why Moody’s finally joined the other credit rating agencies in downgrading U.S. debt.

And it may be adding fuel to the bond market fire, with the 30-year Treasury yield topping 5%.

Despite tough talk on getting government spending down, and the billions of dollars in wasteful spending identified by DOGE, none of that matters if actual spending rises.

Turn Your Images On

This doesn’t mean a debt crisis overnight. Just like the global shift away from the U.S. dollar, there’s no singular event that historians will be able to identify.

Instead, it’s more like a death by a thousand cuts. The business-as-usual spending out of Washington while the bond market screams that a fix is needed is simply the most recent cut.

-Andrew

Ripple Effect

America’s Debt Crisis Goes Into Overdrive

Andrew Packer

May 19, 2025 • 46 second read

The GOP’s spending bill isn’t quite yet ready for a vote. However, based on the current proposals, total debt could increase from $3.3 trillion to $5.2 trillion.

That may be why Moody’s finally joined the other credit rating agencies in downgrading U.S. debt.

And it may be adding fuel to the bond market fire, with the 30-year Treasury yield topping 5%.

Despite tough talk on getting government spending down, and the billions of dollars in wasteful spending identified by DOGE, none of that matters if actual spending rises.

Turn Your Images On

This doesn’t mean a debt crisis overnight. Just like the global shift away from the U.S. dollar, there’s no singular event that historians will be able to identify.

Instead, it’s more like a death by a thousand cuts. The business-as-usual spending out of Washington while the bond market screams that a fix is needed is simply the most recent cut.

-Andrew

Plowshares into Swords

September 15, 2025 • Bill Bonner

The empire is in decline. Demographics, regulatory tightening, fake money and the mis-allocation of trillions of dollars (much of it on pointless wars) have sapped the vitality of the economy. The Federal government gets bigger and bigger, but there is no longer enough output to pay for it.

The interest on the debt alone takes more more than a trillion dollars a year. The US faces a financial crisis. And for the first time in history, our children face a poorer future.

The welfare state model no longer works; the center — consensual democracy — wobbles towards the extremes. What to do? Beat our plowshares into swords?

The Shadow Fed Rises

September 15, 2025 • Addison Wiggin

A separate University of Chicago poll warned that political interference would push up U.S. borrowing costs and raise risk premia on government debt.

And yet, trust is draining away.

In 2001, amid the turmoil of the tech wreck meltdown on Wall Street, Gallup found 74% of Americans had confidence Alan Greenspan would “do the right thing.”

In 2025, only 37% say the same of Jerome Powell. For the first time since Trump and Powell shared the stage, more Americans trust Trump than Powell to steer the economy.

That does not bode well for Fed independence.

U.S. Government Spent 51% More Than It Took In Last Month

September 15, 2025 • Addison Wiggin

The government spent more than half of the money again, as much as it earned last month. Imagine how long spending like that would last if it were your family budget.

U.S. Government Spent 51% More Than It Took In Last Month

Porter Stansberry: A Repeat of MicroStrategy’s +2,400% Return

September 12, 2025 • Addison Wiggin

As Bitcoin’s price has risen, it now trades for around $115,000, MicroStrategy’s stock has experienced an even greater parabolic rise.

Today the company, renamed Strategy, has a market cap of $103 billion – and investors have seen returns of more than 2,400% in a little over 5 years.

It’s one of the greatest growth stories of recent years and one that almost nobody could have seen coming.

For anyone who has ridden the MicroStrategy gravy train, congratulations.

And for those who missed it, I believe you could have a rare second chance.

Porter Stansberry: A Repeat of MicroStrategy’s +2,400% Return

Plowshares into Swords

September 15, 2025 • Bill Bonner

The interest on the debt alone takes more more than a trillion dollars a year. The US faces a financial crisis. And for the first time in history, our children face a poorer future.

The welfare state model no longer works; the center — consensual democracy — wobbles towards the extremes. What to do? Beat our plowshares into swords?

The Shadow Fed Rises

September 15, 2025 • Addison Wiggin

A separate University of Chicago poll warned that political interference would push up U.S. borrowing costs and raise risk premia on government debt.

And yet, trust is draining away.

In 2001, amid the turmoil of the tech wreck meltdown on Wall Street, Gallup found 74% of Americans had confidence Alan Greenspan would “do the right thing.”

In 2025, only 37% say the same of Jerome Powell. For the first time since Trump and Powell shared the stage, more Americans trust Trump than Powell to steer the economy.

That does not bode well for Fed independence.

U.S. Government Spent 51% More Than It Took In Last Month

September 15, 2025 • Addison Wiggin

The government spent more than half of the money again, as much as it earned last month. Imagine how long spending like that would last if it were your family budget.

Porter Stansberry: A Repeat of MicroStrategy’s +2,400% Return

September 12, 2025 • Addison Wiggin

As Bitcoin’s price has risen, it now trades for around $115,000, MicroStrategy’s stock has experienced an even greater parabolic rise.

Today the company, renamed Strategy, has a market cap of $103 billion – and investors have seen returns of more than 2,400% in a little over 5 years.

It’s one of the greatest growth stories of recent years and one that almost nobody could have seen coming.

For anyone who has ridden the MicroStrategy gravy train, congratulations.

And for those who missed it, I believe you could have a rare second chance.