🇺🇸💸❌🇺🇸 The Debt Engine Stalls: Betting Against American Exceptionalism
It takes nearly two dollars of new debt to create just one dollar of GDP growth in the U.S. economy—an ominous metric that’s worsened by 50% in just five years. Meanwhile, annual interest payments on Washington’s runaway debt have surpassed $1 trillion—more than the defense budget. This is not growth; it’s a financial black hole devouring itself.
Ruchir Sharma’s warning in the Financial Times hits hard: what other nation could get away with this without seeing its markets implode? Only one that clings to reserve currency status like a fading empire desperate to extend its stay at the top. But cracks are appearing. Pimco is pulling back from U.S. debt exposure, signaling that even the biggest players sense the house of cards is wobbling.
The illusion of “American exceptionalism” is faltering under the weight of decades of debt-fueled consumerism, Wall Street hubris, and the dollar’s dominance. Once competitors like Europe or China start their rebound, the U.S.’s thin veneer of invincibility could be shredded.
❗️When this debt bubble bursts—and it will—the fallout will be global. The world might finally wake up to the fact that an empire built on borrowed time and printed money was destined to crumble. America’s debt Ponzi has fueled Wall Street while hollowing out Main Street. The engines of global finance are sputtering, and the consequences won’t stay confined to Washington.
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It takes nearly two dollars of new debt to create just one dollar of GDP growth in the U.S. economy—an ominous metric that’s worsened by 50% in just five years. Meanwhile, annual interest payments on Washington’s runaway debt have surpassed $1 trillion—more than the defense budget. This is not growth; it’s a financial black hole devouring itself.
Ruchir Sharma’s warning in the Financial Times hits hard: what other nation could get away with this without seeing its markets implode? Only one that clings to reserve currency status like a fading empire desperate to extend its stay at the top. But cracks are appearing. Pimco is pulling back from U.S. debt exposure, signaling that even the biggest players sense the house of cards is wobbling.
The illusion of “American exceptionalism” is faltering under the weight of decades of debt-fueled consumerism, Wall Street hubris, and the dollar’s dominance. Once competitors like Europe or China start their rebound, the U.S.’s thin veneer of invincibility could be shredded.
❗️When this debt bubble bursts—and it will—the fallout will be global. The world might finally wake up to the fact that an empire built on borrowed time and printed money was destined to crumble. America’s debt Ponzi has fueled Wall Street while hollowing out Main Street. The engines of global finance are sputtering, and the consequences won’t stay confined to Washington.
🎙 Subscribe @TheIslanderNews