Is America Headed for Bankruptcy?

Elon Musk posted on X today in reply to a Heritage Foundation economist, saying that “America is headed for bankruptcy fyi.”

The economist asked the question “How did we get here?” To which he answered the following:

Two men: FDR and Richard Nixon. Together, they broke the dollar. And put the American people into debt slavery.

I tweeted back to @elonmusk the following.

We wouldn’t have the issues our monetary system has today if it wasn’t for the root of the problem, the Federal Reserve. It is the Federal Reserve that prints money, aka Federal Reserve Notes, out of thin air and loans these notes to Congress and charges them an interest rate. The Congress then spends this money on the things it deems necessary for the country through the myriad of departments it has created as shown in the following graphic.  Go the the link to see it in full if you can’t read it.

I wrote about what back the dollar and how it has changed since the Federal Reserve created Federal Reserve Notes and backed them with gold back in 1913 in my book Illusions of Wealth. I have provided a detailed excerpt from that book of Chapter 2 you can read by clicking the following link.

Chapter 2 – What Is a Dollar or Federal Reserve Note, and What Backs Our Money?

Gold and silver did at one time back our money and today it is simply the full faith and credit of the United States with its almost $35 trillion in debt.

Most of you who have read my articles over the years know that I don’t use fear of a dollar crash or anything about the world coming to an end as a reason to buy gold and silver. I am all about numbers and simple math tells me that there is trouble ahead with the U.S. dollar. But not just the U.S. dollar but many currencies in the world. The truth is, every single currency throughout the history of mankind has failed and that is why I call currencies, Illusions of Wealth.

Those dollar bills you hold in your pocket are a “note.” Merriam Webster’s dictionary defines a note as follows: “a written promise to pay.”

For those that didn’t read Chapter 2 of my book above, I point out that when Federal Reserve Notes were first issued they said at the bottom of the note, “Redeemable in gold.” After gold was confiscated in 1933, they changed what was written at the bottom of the Federal Reserve Note to “Redeemable in lawful money.” Presumably lawful money was supposed to mean gold. That is where the illusion began with fist currency backed by nothing. After Nixon took us off the gold standard in 1971 the Federal Reserve Notes now just say “This note is legal tender for all debts public and private.”

I have pointed out several times that silver has maintained its purchasing power of time when you compare what a 1964 or before quarter of 90% silver can buy to a 1965 or later quarter. Today with silver down a bit to $27.86, the pre-1965 quarter is worth $5.03. The 1965 and later quarter is worth 25 cents.

What backs that 25 cents? Almost $35 trillion in debt and a country that the richest man in the world Elon Musk says is going bankrupt.

Is the Federal Reserve too big to fail? Notice on the government chart above that it doesn’t mention the Federal Reserve but our entire government relies on the printing of money out of thin air that the Federal Reserve and it’s owners pushed on the American people back in 1913. And the Federal Reserve, to keep the game of fleecing U.S. citizens of their wealth through an out of control government that can’t curtail spending (see Job 41) also has $6.64 trillion on their own balance sheet.

Add it all up and we are in debt to the Federal Reserve for almost $41 trillion. When all of the personal income tax eventually goes to pay all of the interest on the debt to the Federal Reserve, will the government begin to cut their spending? We are headed that way and most likely you don’t have enough of the money that maintains its purchasing power over time; silver and gold.

You can bet the Federal Reserve with the recent stock market issues will lower interest rates soon to try and get some stimulus going into this beaten down economy. And when I say beaten, I mean I am out on the streets of San Diego and ask how business is and everyone says it is down. The real economy is in trouble and yet Consumer Sentiment came out positive today. Don’t you believe it. Consumers are falling behind on their credit card payments. Consumers are working more than one job making it seem like the unemployment rate is improving under the Biden administration. We are at 7.2% unemployment when you add in those who don’t look for work any longer. California is at 9.6% the highest in the nation.

I don’t care what price of silver and gold do over the next few weeks as I know they will maintain their purchasing power. It doesn’t matter who becomes President either. Congress will do what they always do and raise the debt ceiling. No one has the guts to do what is right for this country and its people as the media keeps everyone’s minds busy arguing left vs right politics.

I found this clip on a National Association of Postal Supervisors website that seems apropos here. In 1971, Pete Townshend of “The Who” wrote a song about revolution, “Won’t Get Fooled Again.” Per the online platform Songfacts, in the first verse, there is an uprising. In the middle, those in power are overthrown, but, in the end, the new regime becomes just like the old regime.

Yes, it’s exactly today what Townshend says at the end of the song and again, this was written in 1971. “Meet the new boss. Same as the old boss.”

Do you think any boss is going to resolve what the Federal Reserve can’t even resolve on their own balance sheet? This is all happening when allegedly we are experiencing the best of times.

Silver is going to soar here soon. Gold will tag along but silver will lead. The dollar breaks 103 and it’s all over for the Fed. They will do all they can to stimulate by continuing to cut rates and gold and silver will benefit.

What can be done to keep Elon Musk from being right about America going bankrupt? Nothing. So you have to prepare yourself now for what’s to come. Our governments hand will be forced and cuts will be made. Many in government will lose jobs. My next book How To Profit In Up and Down Market will get many through the coming troubled times. Especially with their investments. It will be out soon.