America Is Taking On Debt at a Furious Pace. How Long Can the Hegemony of the Greenback Protect America?

While the risks for America are limited in the short term, the issue is quite different in the medium term.

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At the start of 2024, American public debt has exceeded $34T.

This unimaginable figure doesn't even seem to move the general public, because no one can imagine what $34T could represent.

So, so far, so good for the general public. The financial markets don't seem to mind either.

The main reason why people aren't even paying attention is that nobody believes in the system anymore.

Regularly, the current government and opposition members of Congress in Washington perform the same debt-ceiling play. A play that has now become a classic, even if, as I told you in mid-2023, it no longer makes any sense:

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Why the Very Notion of a Debt Ceiling Makes No Sense in the Current Debt-Based System.

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In this play, one side demands new room for maneuvering, while the other screams for an end to all-out spending.

After several days, even weeks, the dispute in Washington is settled, and it's back to business as usual: America's debt can continue to grow without limit. By repeating itself so often, nobody believes it anymore. This tragedy has become a farce!

And yet, there's plenty to worry about.