The Federal Reserve estimates that in 2023, credit card delinquencies will rise by 50% while consumer debt will reach $17.5 trillion. According to a recent Clever Real Estate survey, 23 percent of Americans report that they are adding to their credit card debt on a monthly basis, and three out of five Americans have credit card debt. Additionally, according to the poll, 59% of millennials and 48% of Americans use credit cards for necessities.

Our fiat money system has resulted in an over reliance on credit cards and an increase in consumer debt. The dollar has lost 87 percent of its worth since Richard Nixon broke the last connection between the dollar and gold in August 1971, according to the government's inflated Consumer Price Index figures. This indicates that although nominal salaries in the United States have climbed, real wages have decreased as dollars buy less.

One reason why so many Americans are unhappy with the state of the economy is the prevalence of credit card use for needs. Another reason the Federal Reserve won't raise interest rates to anything close to what they would in a free market is the quantity of consumer debt. The fact that firms and investors have developed an addiction to interest rates that are close to or equal to zero exacerbates the issue. Numerous "experts" warned that the Fed would plunge the economy into a recession as a result of the Fed's comparatively mild rate rises over the previous few years. However, the Fed has been able to assert that the recession was averted because it maintained relatively low interest rates and because the government statistics are manipulated to understate the real rates of unemployment and inflation.

Interest rates cannot be kept low by the Fed indefinitely without sparking a dollar crisis. This will either be brought about by or lead to the rejection of the dollar's status as the global reserve currency. When that happens, interest rates will soar, and people and companies who have been depending on debt to get by throughout the Fed's devaluation of the currency will find themselves confronted by collectors who will demand payment.

The moral crisis brought on by the conviction held by far too many Americans at all social levels that they are entitled to economic stability given by the government at the expense of their fellow citizens will exacerbate the current economic crisis. Violence and the rise of authoritarian political movements will follow from this.

The demise of the welfare-warfare state that accompanied the fiat money system also presents an opportunity for those of us who are truth-aware to establish a society centered on the values of liberty. As we prepare our families to be self-sufficient in the event of the next catastrophe, we also need to keep working toward reaching a critical mass of people with the message of liberty. - The Ron Paul Institute

Washington’s Worst Kept Secret

With a ballooning national debt, out-of-control deficit, and soaring interest payments, there is no denying that our nation’s economic outlook is in bad shape.

Despite alarming projections and dire warning signs, the federal government continues to steamroll its way to fiscal ruin — rapidly barreling toward an economic cliff that will devastate Americans for generations to come. Given Washington’s reckless spending habits, it’s plausible to assume that our nation’s leaders are blindfolded by blissful ignorance as the U.S. economy heads off the tracks.

But you would be mistaken. It’s not blissful ignorance, it’s willful negligence.

Washington’s worst-kept secret is that our national debt is the $34 trillion problem that nobody cares about.

Politicians have claimed to be champions of economic discipline during campaigning for years. However, after coming to Washington, very few can actually back up their baseless assertions with their voting records. The majority of politicians rapidly come to the conclusion that it is far simpler to mingle with K Street lobbyists and shake hands with the leadership than it is to vehemently disagree with the Swamp's current spending practices.

This ridiculous inclination, which permeates both chambers and both parties, is particularly noticeable when Congress is debating "must-pass" bills, such those pertaining to public spending. When the chips are down, the majority of senators fold on their purported economic concerns, go along with the plan, and pat themselves on the back while driving the United States farther into debt.

The amount of debt owed by the United States to foreign countries has increased by almost $2.4 trillion since last June, an alarming rate of approximately $1 trillion every hundred days. Things are only getting worse due to higher interest rates. Not only is it anticipated that interest payments on the national debt will surpass defense spending in the upcoming months, but this year we will also need to refinance about $8 trillion of the debt at higher interest rates. The rising deficit, which economists like E.J. Antoni of the Heritage Foundation are now projecting will rise to $3 trillion this fiscal year, is mostly the result of this increase in interest.

The fault lies across political parties; both have rewarded extravagant spending over sensible budget cuts, emphasized pork projects over people, and embraced larger budgets over gloomy economic forecasts. The United States' economic problems will only become worse if these self-centered, careless, and foolish behaviors continue.

Written for The Hill by Rep. Andrew Clyde