Is China able to wage economic warfare against us? Do they even need to do that? Zach Abraham and I discuss that and the stunning amount of money the Separate Country of Washington spent to pretend to move people out of homelessness. Zach also responds to the article in Zero Hedge that makes these predictions (and also misstates the tax revenue trends which continue to rise).
“Just do the math: interest costs on the national debt are spiraling out of control at a time when tax revenue is falling. It’s not a pretty picture.
And based on this scenario, I’d humbly make a few predictions:
1) The Federal Reserve will reverse course and start cutting rates.
This might not happen right away; the Fed seems far more concerned right now with appearing like they’re in control and know what they’re doing. But no Fed Chairman wants to preside over the bankruptcy of the United States.
So the Fed will have to cut rates and start printing money again in order to save the federal government, as well as the banking system, Social Security, and more.
2) This will lead to more inflation.
With the Fed creating so much money– trillions of dollars at once– the US economy will suffer the same predictable consequences as it did in 2021 and 2022: inflation.
3) And a loss of confidence in the dollar
Higher inflation coupled with outright government dysfunction has already caused much of the world to seek alternatives to the dollar. Another bout of inflation, plus potentially several more years of incompetence will probably be enough to reset the dollar-centric Bretton Woods system once and for all.
4) Foreign nations will stop investing in US government bonds
With the dollar no longer at the center of global finance, foreigners (presently $7.7 trillion) will no longer have the same incentives to own US debt. This means that one of the US government’s major funding sources will dry up, leaving politicians scrambling to find money.
5) Politicians will demand new and higher taxes.
With foreigners no longer buying US government bonds at the same pace, politicians will try to raise tax revenue. Expect wealth taxes, higher income taxes, green taxes, and even windfall profits taxes on certain assets and income like crypto, gold, oil profits, etc.
6) Many Americans will move further left
Politicians and their media allies will insist that capitalism has failed… and rescuing the nation from this hardship will require bigger government and more intervention.

What does God’s Word say?
Proverbs 12:15
The way of fools seems right to them, but the wise listen to advice.
Proverbs 11:14
For lack of guidance a nation falls, but victory is won through many advisers.

Episode 1,177 Links:

• Washington state spends $143 MILLION to get 126 out of homelessness—now Jay Inslee is asking for more; “That’s the equivalent of spending... $1,137,256 per person to exit homelessness.”
• Six predictions from the last week’s horrific Treasury report

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Broadcast on:

27 Oct 2023

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