lobopride said:
This is why I invest in gold and silver.The Rule of 72.
— TF Metals Report (@TFMetals) July 20, 2026
If something doubles in 9 years, then it is compounding at 8%.
9x8=72
As such, expect total US debt to double again and reach $80T by 2035 at the latest.
And yet there are chart-readers and Xperts who claim that gold is going back to $2000 and staying there. pic.twitter.com/q2U62Cxgr1
Yes that's been running around x for a week or so. Yet another person who has never studied history who thinks you can extrapolate a trend forever.
The debt won't get anywhere close to that as the government would default well before then. With the debt at $39T we already have historic unaffordability for the majority of the country rivaling the late 1920's.
To add that much debt, there has to be a willing buyer of the debt. And for there to be a willing buyer of that debt, interest rates would be continually rising and likely making the 70's look like child's play. We already can't service our DEFICIT, which means we're YEARS away from servicing our debt, and have to issue continually increasing levels of new treasuries AS WELL AS refinance existing treasuries just to fund the ability to pay the interest on the existing debt (as well as all the other spending).
We're already in the death spiral where new debt leads to higher rates which leads to higher interest payments which leads to issuing more new debt.
Long story short, even before we got halfway there we would default. And you can't compare us to developing nations with currencies nobody cares about. At the end of the day, they transact in dollars which we gladly supply them so they can continue to hyperinflate. And even some of them have defaulted over the years.
That scenario even starting to play out would end in a world changing currency crisis and likely world war.
But I don't disagree that they will try. Their only options are forced austerity (which they have proven they aren't interested in outside of moving lips while doing the opposite with their actions), or the above scenario. But the above scenario won't work for reasons mentioned above. Not to mention that any new official QE (buying of assets by the FED), works through the system by the FED crediting banks reserve accounts with this new money and taking the assets onto their balance sheet. For the money to enter the system, the banks have to have demand for loans from the public. Such demand barely exists now and won't exist at all with higher rates. So those assets would sit on the FED balance sheet while no new money actually circulates through the system. The end result would be high yield deflation.
