The Road To Ruin: U.S. Government Adds $1 Trillion In Debt In 3 Months!
It took the U.S. federal government almost 200 years to rack up $1 Trillion in debt. The latest trillion to be added took a mere 3 months! Far too many Americans have come to believe that, instead of protecting individual liberty, the U.S. government can be everything to everyone. Meanwhile, members of government have come to believe that, not only can they perform such an impossible task, but they can perform it for the entire world! This massive delusion is racing towards a massive bankruptcy.
Hello everybody and thank you for tuning in to the Liberty Report.
With us today is Chris Rossini, our co-host.
Chris, good to see you today.
Great to be with you, Dr. Paul.
Very good.
We're going to be talking about debt.
Do you think anybody in this country has any concern about the debt?
Well, if they don't have concern yet, we might add some fuel to the fire because we're concerned and we should be concerned.
And it signifies something is out of control that we want to talk about that.
But before we do that, I want to mention a related item indirectly about the debt and what's going on on one incident that happened here in the last day or two.
And that has to do with the F-35.
The F-35 is the biggest boondog I think we've ever had.
And I think the Pentagon now owns 450 of them.
But there's a fascinating story and a weird story about the pilot of one of them had to bail out.
He survived and they talked to him, but there was some confusion.
Then the plane kept flying because it was like on autopilot and it went about 60 miles or so and then it crashed.
But for 24 hours they couldn't find it.
And the plane's had a lot of problems.
They've been selling some of them, but it's very, very controversial.
But we still, the DOD has a lot more ordered.
And I kept thinking, you know, these planes are so expensive and they're being sold.
And I think, well, this is part of a military industrial complex.
They lobby for this.
Well, where do they get the money to pay for it?
Chris, guess what?
I think they get it from the Federal Reserve.
I think it's inflationary.
I think it's a pretense that we have a lot of money.
And people in the short run make a lot of money who manufactures planes like this and all the people that are in on the take.
But this is something that is in the news right now, but I think it really contributes too much to what's going on with a fake monetary system.
And this is one incident, but the whole thing is, there's another major argument going on in Washington about how much more money are we going to give to Ukraine.
And fortunately, there's a debate going on for the first time.
And people are worried, or they're going to close down the government, which Daniel and I talked about yesterday.
They don't really close down the government.
But all the politicians play that game.
Do it my way, or the government's going to close down.
And you won't be able to go into the Washington Monument for a week.
And if you get, if your job, if they send you home from your job, you never have to worry a thing.
You get all your money at the end.
They probably pay them interest as well.
So it's all a fake on what we're doing.
But it also acknowledges and makes the point about that, the type of spending we see in the military-industrial complex, fighting wars that we shouldn't have, buying airplanes that don't work very well.
And then they wonder why a problem pops up like Chris and I are going to talk about today, because we're going to be talking about the deficit.
But before I do that, I want to emphasize that one of the things that happens when a government lives beyond its mean, even if it has, or especially when it has the reserve currency of the world that used to be backed by gold.
Well, when it severs its link to gold, inevitably the money eventually self-destructs.
That is, there are no restraints, especially if you have an empire behind you.
You print, print, print, and you take over and you expand the empire, and we've been doing that, making a lot of enemies.
And that to me is a big problem.
So we have to be concerned about that.
And the American people are still not quite privy to exactly how this happens, because it wouldn't happen if you didn't have a Federal Reserve.
The Federal Reserve is the culprit.
And one test of how bad things are is, are people buying gold?
Yes, they are buying gold.
And are other countries thinking about the gold standard a lot more than the United States?
Yes, they are.
Which means that ultimately history has shown the number of people and civilizations that have been on the side of our argument that we make that gold is money and it's long-lasting.
It's been around for about 6,000 years and used as a value that could be used as a monetary issue.
So the gold is one way that a common person can resort to trying their best to protect themselves and their family against what's coming, which is what we'll be talking about, which is coming.
The debt is out of control.
So how do you do this?
Because you hear a lot of talk that you have two parties and one party said they can do better than the other.
But no matter which party you have, you keep spending.
And the deficits keep going up.
So this is something that we have to contend with.
And the people can get some protection because they can personally buy and own gold.
When I was in high school, grade school, high school, and in college, until 1971, we were not allowed to own gold.
It was illegal to own gold because gold was too valuable in the manipulation of the welfare warfare state that Roosevelt brought in.
So in 1933, he made it illegal to own gold.
And so the American people didn't have the gold.
Today, that's not true.
We at least have the legal right to own gold.
And there are a lot of people now advertising.
You can get different ways that you can buy and invest in gold and make a sincere effort to try to protect against the things that are likely to come because the world has gone through this type of a problem many times before.
This is the reason I work with the Birch Gold Group because they do have their ideas and they have their promotions and they have the advice on how people can do that.
If they're getting a little bit worried about the stock market, which they would have a right to, and they're thinking about something more long-lasting, and if they believe that the government is not going to stop spending with the crowd that we have in Washington, which means the Fed is going to stay busy printing money, then I think personally, I decided that before I was allowed to own gold, but certainly it became handwriting on the wall after 1971, no link whatsoever to gold,
and all of a sudden gold went from $35 an ounce up to nearly $2,000 an others, and it's going to go a lot more.
So if you have an interest in getting some information from Birch Gold, it's very easy.
Gold's Ultimate Role00:15:46
What you do is you text Ron 989898, and they will send you material.
It doesn't cost anything, and if you transfer funds around, there is no taxation on these transfers.
So I think people should think about that for their own good.
And besides, I have a personal interest because I think the more people who are protected, the better things will be.
And it will be easier to go to a sound monetary system if the people have been conditioned to understanding why gold is important.
So, once again, if you're interested in getting some of this material, what you do is text Ron, 98989A, and they will send you some material.
Chris, now I want to spend a little bit of time on exactly what's happening.
We came a chart, matter of fact, you're the one that came up with this chart from, we know it has to be true because the Federal Reserve printed it, and they printed it as just a document.
And it's a subject that a lot of people know about and talk about a little bit.
But this article now, our emphasis now is to show that the chart we're going to be showing a chart.
And the chart shows that the interest on the national debt is growing incrementally.
He's huge here.
Can you move that over a little bit so we can see?
Yeah, there it is.
This is a chart of the interest on the debt.
And just look at what it's doing exponentially.
And that's just to pay to print more money to pay the interest on the debt.
That's a point of no return, let me tell you, because there's nobody going to be able to pass any bill, and they're arguing and fighting right now.
We have one thing that we talk about and we're sort of excited about is more and more Republicans.
Republicans at the grassroots are waking up.
And there has been a time when the whole time I was in Congress, it was sacred that all Republicans support just about all the time the wasteful spending in the military-industrial complex, which literally introduces wars that continue to build up debt and all this nonsense relying on the Federal Reserve.
So this point right now, Chris, I think it is crucial.
I'm glad you pointed this out for us because that chart showing the growth of the interest necessary to pay for the interest, and it has to be borrowed.
So that's borrowed money to pay interest on the debt.
So how they're going to reverse that is a big deal.
My belief is it's going to end badly, but there's no reason why knowledgeable people and a few more honest people in Washington couldn't take care of this in a much better fashion than it's being taken care of now.
Chris?
Right, Dr. Paul.
Yes, we saw this week that the U.S. government's debt is now $33 trillion, up from $32 trillion just three months ago.
So that's $1 trillion in debt in just three months.
It took almost 200 years to get that first trillion, and now it's taking three months.
I mean, what are we going to be doing to show that it takes three weeks to add a trillion dollars?
I guess we'll see.
But what we're seeing, in my view, is the end of the progressive era government.
You know, at the beginning of the 1900s, there was a major shift in the belief in the role of government of the United States.
No longer was it a protector of liberty.
It is now going to progressively and scientifically rule all of society.
And that's what it has done.
That's what people believe today, that it should do.
It is the grantor of rights.
So instead of rights being natural from our Creator, it comes from government.
And of course, people make up rights all the time.
You read about them all the time.
They believe they have a right to this and a right to that.
Take care of my health care, my education, my kids in pre-K, Social Security, vaccine up.
From start to finish of your life, the government is your provider.
And of course, this is a grand delusion.
It's a very big one, as we see with the debt.
It goes beyond what the people themselves believe, and it trickles into the minds of the politicians.
They believe, yeah, we could do that.
We could do all of this and more.
We will take care of the entire world.
We have a thousand bases peppered all over the planet.
We will tell every country what to do, not just rule our own people.
So, what we have is a mass, mass delusion that is costing trillions even faster.
This will end badly, unfortunately, unless there is a major shift in the minds of the American people on what the role of government should be.
It should not be that it is the everything for everyone because it is leading us to bankruptcy.
Very good.
You know, each morning when I wake up and go to the business stations and on the computer, I'm looking for a few things because automatically there are more important others.
One is the gold price, because ultimately, no matter what the government does, even when it's totally illegal to own, the people still know that gold is the ultimate money.
It's been there for 6,000 years.
So, the gold price is important.
The other thing I look for is the money supply.
Are they printing the money or whatnot?
And you can be assured under the conditions today, in order to pay the interest, we're going to increase the money supply and decrease the credit.
Then, we also have to take into consideration not only what the Fed does and printing of the money, but also what comes out of the fractional reserve system where the banks are allowed to loan money that they don't really have.
So, all these things add the pressure on the dollar.
And it's something that when they do this, when the government, when all the politicians spend money and they don't have the money, they just write, they pass the bill, they spend it, and they're always buying votes.
That's their investment.
They buy votes, and everybody's a special interest, whether it's the military-industrial complex, the drug industry, or whatever, or just plain old-fashioned welfareism, and now it's corporatism.
So, the money is spent.
That's most of the time the easy part until the country gets poorer, like they're getting now.
So, there's a little bit of more argument and contention because people are starting to sense this can't last forever.
But, what happens if they send the bills to the Federal Reserve?
What do they do?
They don't have any real money.
They have fake money, and they have a license to steal.
They're counterfeiters.
How much do you need?
Oh, what?
Chris just said they had $3 trillion in a couple months.
It's expanding exponentially.
The Fed has no problem.
They have a computer.
They just create the money and they pay the bills.
Then, the next step that happens on that is that once they monetize all this and the fractional reserve system stays maintained, common sense tells you, well, if they keep doing this, wouldn't that make the dollar cheaper?
Wouldn't it make it look like it's not worth as much?
Exactly, it doesn't.
You decrease the value of the dollar.
And what happens when the dollar isn't worth as much?
Well, prices go up.
Oh, I didn't, yeah, I guess that's easy to understand.
You know, the prices go up, and then also, people then see one of the protections of all this, that you end up with saying, this is the reason why gold is different because it maintains value, and the dollar-gold ratio changes where gold in dollars terms goes up.
So that's why it provides a haven for the people who are worried about what's going on.
But I think what I want to remind people is there's a lot of arguments and a lot of shenanigans go on, a lot of politicking going on, a lot of deceitful activity now.
And just to warn them once again, Chris, you know, you don't always hear the truth coming out of Washington.
You don't always hear the truth on their financial reports.
And you don't ever really ever hear the truth about why we have to send kids 6,000 miles away to stir up trouble.
And a bunch of people dying over all this.
But it's always us, just like in Ukraine.
We have to pay the bills and it's huge, $100 billion already.
And that chart we showed at the beginning is showing why this is coming to an end because we can't even pay the interest on the debt.
We have to borrow the money to pay the interest.
Yet we're increasing the debt.
It's a losing proposition.
But we have to realize it's the effort for the majority, large majority of people thinking in this system that democracy allows people to get together and lobby for what they want.
And they do.
They get together.
They get 51% to vote for more handouts.
And they say, democracy is great.
Democracy is day.
But what it only has done is able to, if the 51% can get what they want, they still have to pay for it.
Well, they'll print up the money.
And that hurts the middle class, the people who didn't get as much of the gravy train.
So they do this, and it is really, really harmful to the middle class and the poor because that's the ultimate tax that hits them.
And unfortunately, you know, the process continues, and the effort to quit spending, the only thing, the only example that I can make that sort of mimics what goes on there, it's an addiction.
And if you have withdrawal of money just pouring in to take care of that, if you didn't have money to pay the interest on the national debt, I mean, it would be pretty amazing.
It would not be this smooth sailing that we have.
But this pseudo-smooth sailing is coming to an end, and that's what our chart is telling us.
Right, Dr. Paul.
And yeah, we do live in an empire of lies.
And the real epidemic is that they lie so much, and the people keep believing in them over and over, no matter how much they've been lied to.
And like I mentioned earlier, I pin this on this progressivism, which started at the beginning of the 1900s.
That's not to say that the U.S. government was an angel prior to the 1900s.
It was not.
There was corruption.
There were liars.
They did all sorts of bad things.
However, the mentality of the people changed into what they believed government was there for.
And that's what the progressive era has given us.
And they've lied this the whole time.
You know, starting even with the Fed, which was, again, progressive era, 1913, they were needed to, you can't have free markets.
They need to stabilize the currency and smooth out business cycles.
Of course, they did the exact opposite.
The income tax, same thing, 1913.
And at the beginning, it was only the richest of the rich.
Nobody has to worry about this.
Nobody has to, we're going to get those rich guys.
That sounds familiar, doesn't it?
They're still saying the same thing 100 years later.
And of course, we all pay income tax just about.
You know, actually, a lot of people, well, we won't go into that.
But then there was student loans.
They're going to help you become, you know, get into college.
What they did was the exact opposite.
You're now loaded up with debt and the degrees, loss of value.
The vaccines, we all know about that, safe and effective.
The wars, Dr. Paul brought up, you know, Iraq was just going to last a few weeks, you know, a couple months, maybe, not 20 years.
So you see, it's all lies, even up to the Russia sanctions.
They were going to isolate.
Everybody's putting Ukraine flags in their Twitter handles.
Russia was not isolated.
Russia was not bankrupted.
The exact opposite.
So it's amazing that they just keep going from one thing to the next.
So the more people realize that they do not tell the truth consistently.
We're talking about a century now.
So, you know, learn from this entire century they don't tell the truth.
It would be reasonable not to believe them one time.
You know, a lot of people would say they're listening to us.
They said, well, we've heard stories like this for a long time.
And it is true.
Decades ago, they talked about the road that we were on.
They were correct because even before Bretton Woods collapsed, people knew printing money is going to change the system.
And of course, there was a big change in 1971 where they just removed any pretense.
And things were real bad in 71, but they seemed to recover because the delusions seemed to be working.
People were delusional.
And some people could operate.
And in spite of all the debt and the problems we have, I mean, we see the results today and the chaos that we have in our streets today and these deficits skyrocketing.
But it really wasn't that bad as some people thought it would have been.
But it is coming.
Now, there's a financial writer that I have noted about, and I've known him, is Graham Summers, and he writes about this a lot.
But he made a point this week, which he's made before, and which is very important, because generally people measure our debt as a percentage of our GDP.
So our debt, when it goes over 100, if the debt is greater than the annual GDP, that sounds like a dangerous thing.
And the first time we ever did that in a significant manner was World War II.
And they've used that as an example of, well, that was very exceptional, and it was.
But they recovered and went back to a more sensible program.
But right now, we're back, you know, with the spending being much greater than borrowing, much greater than the GDP.
But Graham this week points out, as I said before, that he has done this before, that if you look at it as a world event, because I think it's more of a world event than ever before, because we have been the richest, we have an empire, we've had control of the reserve currency, you know, the dollar.
So this malinvestment, this distribution of debt has scattered around the world, never in a fair manner, but it's been around and it's involved almost everybody.
So if you have a cataclysmic ending to the dollar, it's going to affect not just the United States.
You know, you hear runaway inflation in the Venezuela.
Well, yeah, we heard about it and said, see what happens when you do that.
But it's sort of held in place.
Within that, with and if it happens, for the dollar, it is going to be noticed by everybody.
And that will not be easy to deal with.
But when he added up all the debt in the world, it's over $300 trillion.
Dollar's $349 Trillion Crisis00:07:59
And it's 349% of the global GDP, which when it's over 100 in the United States, that's a warning sign.
But here, if you take the whole world, it's a 349%.
So the world, although there's many countries that will admit, yes, we're very poor and we want somebody to bail us out and all this sort of thing.
But this is an indication the world is really poor and there's a lot of investment.
And if you could trust and say, well, we're doing well.
The Fed is handling the crisis pretty well.
And they won't befriend us.
They will print the money because we have to keep the system going.
I think that's a delusion.
And I think this is a delusional system.
And it's been that way.
Matter of fact, even from the beginning of the Federal Reserve, it was delusional.
But now it's getting to be recognized as one of the biggest delusion ever found on mankind.
Excellent, Dr. Paul.
I'll finish up with my closing thoughts.
You know, all of us, we tend to want, as bad as all this is, to be fixed.
We want somebody to come in and to fix it.
And that's just not the way that it works.
We need to individually go in the opposite direction of the empire of lies.
The moment we start thinking that we have to go change the world, we're no different than the Bill Gates's and the Klaus Schwabs who think that they are remaking the world.
They're not, they're ruining everything, but that's their mentality.
It's outwards, where we need to be individually focused on doing the opposite of what they do.
You know, don't add to that.
Get out of it to the best of your ability.
Don't call for new rights from the government.
The government is not a provider of rights.
Protect your natural, God-given rights to speak, to defend yourself, to worship.
And that we can do individually.
We don't have to change anybody else.
And obviously, don't call for war.
And that's hard because people get on a bandwagon.
They don't even know what they're calling for.
It's just everybody else is doing it, so they do it too.
Peace, not intervention.
And momentum starts from the individual.
It's not that you're changing the world directly.
It's that other people will notice you.
And without them even telling you, they will change on their own.
They'll be like, you know, this guy's got it right.
I want to do like that.
And that's how change happens outside of yourself.
Can't be like the Karens, the Yankee mentality, the Puritan mentality, that you're going to go out into the world and remake them in your own puny little image.
It's not going to happen.
You're going to create a lot of destruction.
So what you have to do is individually, and this is very hard for all of us to do, go in the opposite direction and set a good example.
Very good, Chris.
I'm going to finish my comments today by talking about what needs to be done before we can start sound economic growth again without undermining the liberties of the people of the country.
Right now, the process is that we are endlessly spending and constantly undermining the liberties of the people.
And the marketplace is in competition with the government because the government officials, they know this debt can't be sustained and they know the debt has to be liquidated.
Matter of fact, they're deliberately in the business of liquidating the debt, the real debt.
And what they do is they, you know, if they double the money supply, the real debt is reduced, you know, in the range of high, you know, it's split in two.
It's less because you're paying back with cheap money.
If you borrow on a mortgage and you borrow $20,000 and 10 years later, you give them $20,000, but it's only worth $10,000.
That was liquidation of real debt.
So that goes on.
And the government likes slow liquidation.
If we control things, if we have a smart Federal Reserve, and if we have them doing liquidation of debt, and that's why they think they can control the price inflation, or they can control interest rates, and they can't.
Right now we're living in an age where many people on Wall Street are saying, I think the Fed has lost control.
Yeah, I do too, because it's not controllable.
And it wasn't even controlled before because they were just deceiving themselves.
But the market wants liquidation.
You know, if you've overspent, you have too much debt, and you won't, and the banks won't loan you any money, and you want to have a clean slate.
Some people do it deliberately.
They can declare bankruptcy.
They can wait and go out of business, or somebody comes along, and the debt has to be liquidated.
People go back to work.
Countries don't do that.
People say, well, there's going to be a lockdown.
There's going to be liquidation.
No, there isn't.
They're going to go on a high-paid holiday.
You know, and it won't be anybody that are doing any honest work.
But they'll get their holiday.
They'll be off if the government is so-called closed down.
That's such a fiction.
So they're going to keep the government open, but they're going to handle the debt.
They want to continue, and they have been liquidating debt.
So if you borrowed money 30 years ago and you're paying it back now, I mean, you're not paying back with the same kind of dollars that were valuable 30 years ago.
So by devaluing the dollar, you pay back and you do liquidate debt.
But the marketplace doesn't want to do it that way.
The market, at least in an honest market, what they do is they liquidate or they declare bankruptcy and the debt is liquidated.
But governments can't do that for political reasons, fortunately, but they will do when the time comes with a cataclysmic end.
They may well do that.
But right now, they're not.
They're just going to print the money and the liquidation of debt is going to devalue the currency.
Prices will continue to rise.
And the political turmoil that we're undergoing right now is going to get much worse.
And that is why it's so crucial that we think about what are we going to do to replace this monster after it self-destructs.
And one thing is, the Fed, some people said they're almost on the verge of that.
The plans ought to be laid for what a sound monetary system is like, what a free society looks like, and what part of the Constitution should we decide is legitimate again, instead of ignoring 90% of it.
So those are things that are not difficult.
And out of desperation, some people may join in on that.
But on the short run, today, if you tried to say, well, why don't you start now and work our way out of it?
Which you could, except for the politics of it.
If you decide tomorrow that we, you don't even have to cut anything.
You just say, well, we're having trouble passing this budget.
We're going to freeze the budget from last year and do the same thing.
You don't get any more money.
That's the liable to start a civil war right there because they want more money, more money.
And there's a lot more education that we have to do.
And that's where I think we're making the progress.
I noticed a difference behind scenes about how many people that I knew were talking since on the budget and sound monetary theory, the gold standard, the Federal Reserve.
So the subtleness that you don't hear about, we have made a lot of progress.
But right now, we need a lot of preparation for that cataclysmic end so that we can start rebuilding and having a system that the founders dreamed of.