Well, it has finally happened. The US federal debt has passed the milestone of $40,000,000,000,000 ($40 trillion) dollars, and the spending by the federal government is still utterly, and totally out-of-control. President Trump came into office promising to get control of the federal deficit. He has become the most spendthrift president in US history. The first link has a chart every American taxpayer should see. It shows the US federal deficit was at $38 trillion just last October, and $39 trillion in March of this year. Given we just passed the $40 trillion mark, higher numbers of trillions in the federal debt are inevitable. The chart shows the federal deficit was about $9 trillion in the 2007-08 Great Recession, and about $23 trillion during the covid years. The second link adds more perspectives to the profligate management of the US budget by a long string of US presidents and Congresses; both parties are equally guilty. The third link offers a menu of relevant links on this topic for readers to review if they wish.
I can recall, decades ago, when there were “fiscal hawks” in Congress who warned about the rising federal debt and the irresponsible spending authorizations by Congress. Now, there are no such creatures anywhere in the federal government. Everyone in Congress participates in the debauching of the federal budget and the US dollar. Everyone just shrugs. No one wants to say some brutally obvious facts: (A) that the federal budget deficit cannot be paid off and (B) that the US government is proving in its decisions that it has no interest in ever getting the growing deficits under control. The entire world is not stupid. Nations and investors can see these two facts clearly. Theoretically, the debt could be “paid off” if holders of US treasury debt instruments would accept pennies on the dollar to “pay them off.” There is another possibility. The USA could simply renege on its debt. How could anyone “foreclose” on a debtor nation that has thousands of nuclear weapons?
The fourth link is a USA Today article which should be mandatory reading for everyone. It reports that “Household debt nationwide totals $18.8 trillion, the highest number on record.” It also states: “Consumer prices are up by roughly 27% since the start of 2021. I think that includes a year in Biden’s administration where inflation was about 9%. The article further adds: “Runaway debt is hitting young Americans especially hard…Millennials…have an average of $43,533 in unsecured debt.” It adds: “Roughly 13% of the nation’s [credit] card balance was at least 90 days delinquent in the first quarter of 2026.” The article relates that many are consolidating credit card debt into personal loans. Indeed, 38% of consumers had already done this by 2025. The article didn’t even quantity mortgage, car loan and student debts of the American people.
Any way you look at this, the financial situation of the American nation has dire financial problems and so do the citizenry. The higher the federal debt goes, the more the government has to pay in interest to service its oversized debt. At some point it is entirely possible that foreign owners of the debt will demand repayment of the US debt. China, a holder of much American government debt, could demand payment or choose to dump US treasuries on the global market in an attempt to replace the US dollar with a gold-backed, new currency as the global reserve currency. Perhaps it was concerns about just such a possibility that moved Senator Rand Paul to recently inspect the gold at Ft. Knox (fifth link). He said the gold stockpile was still at Ft. Knox, but it would be very easy to deceive any visitor about whether the “gold bars” were really gold bars. I’ve blogged in the past about nations, including China, being duped in the past by gold-looking bars which were really just tungsten bars coated or “salted” with a thin veneer of what is essentially gold paint. It makes nations and gold-holders look much richer than they really are. Also, just because gold is stored in Ft. Knox doesn’t mean it is actually owned by the USA in an “unencumbered” category. It may belong to some other nation or party who is simply storing its gold at Ft. Knox. Years ago, I blogged about Germany’s effort to repatriate its gold that was being stored inside the USA. It took an inordinate amount of time for the US government and/or Federal Reserve to “find” the German gold. The Germans likely kept record of the serial numbers on its genuine gold bars being stored inside the USA, and they probably insisted that the serial numbers of the gold bars being given back to Germany matched the serial numbers in the German records. They likely also demanded some core borings as a spot check to make sure they were not getting back tungsten bars with a gold veneer. Those blogs can be found via the “search” feature in the archives of my prophecy blog at my website.
There is one thing the nations are all failing to consider in their calculations. That is the role of the Divine Creator of the Bible in latter-day events. There is a Divine financial law that says “the borrower is servant to the lender” (Proverbs 22:7). The US government is a “borrower” that owes the world’s nations and investors an amount so huge that payment of the debt is not possible. At some point lenders to deadbeat nations will start making political demands upon the “borrower” nations which must be acted on in lieu of timely payment on the debts. This may already be happening. Proverbs 21:1 also tells us that the decisions made by national leaders can be determined by Divine intervention in the hearts of national leaders–making them to take actions no one expects. There is a specific prophecy in the Bible about the latter days–provably our time. If anyone doubts that, please read my article, Are We Living in the Biblical Latter Days? (sixth link). That article has much evidence that we are, indeed, living in the latter days prophesied by the Bible.
One of the Bible’s major prophecies is that the global financial/political system will experience a global collapse at some point during the latter days and there will be a period of chaos out of which will emerge a global “beast” system. The pieces are already in place for fulfilling that prophecy. One place where this prophecy is discussed is Revelation 17. This chapter foretells that a deeply-entrenched financial system that controls the world will be torn down by a rebelling alliance of new leaders who will replace the former ones. This chapter foretells also that Babylon the Great (the prophecy’s name for the current global financial system) will not go down easy. Verses 16-17 have violent language describing the fall of the current system and its replacement by a new one; arguing that blood will be spilled in wars as this prophesied event occurs. Much detail about this prophesied fall of the current global order can be found in my article: Is “Babylon the Great” About to Fall…Ushering in a Global “Beast” System? (seventh link).
Biblical prophecy does not tell us a time or year when these prophecies will be fulfilled. However, the prophecies do indicate that the conditions are in place for them to be fulfilled any time. The world will be in shock when these prophesied events occur. If you read the aforementioned articles, you will not be shocked when these events befall the unprepared nations.
- AP News: Treasury National Debt Limit
- Wikipedia: National Debt of the United States
- Google Search: “USA drowning in a sea of debt”
- USA Today: Debt Consolidation, Credit Cards, Personal Loans, Bankruptcy
- ZeroHedge: Rand Paul Goes to Fort Knox to Verify US Gold Stockpile Still Exists
- Are We Living in the Biblical Latter Days?
- Is “Babylon the Great” About to Fall…Ushering in a Global “Beast” System?
