BANKRUPT GOVERNMENTS AND NEGATIVE INTEREST RATES

Gigantic, logical disconnect mixed in with economic dogma

The United States is bankrupt. Even officially, its debt-to-GDP ratio is well above 100%, the economic/financial point-of-no-return. Unofficially, its total debts-and-liabilities now exceed $200 trillion – ten times as much as this (relatively) puny economy can service, over even the medium term. The U.S. is not merelybankrupt, it is in a financial state unique to the Western governments of the 21stcentury: “ridiculously bankrupt”.

The United States government has never, in its entire history, paid less interest on its debts. Consider the absurd perversity here. Back when we had a rational/legitimate (and solvent) economic system, financing operated on a very basic principle of risk: the greater the risk of default, the higher the interest rate demanded by lenders. Obviously the highest rates of interest would be required with respect to any insolvent/near-insolvent debtors.

This principle is merely elementary common sense, and used to be an automatic reality of lending/borrowing. The fact that readers even need to be reminded of this basic principle indicates how far divorced from such rationality our criminal/fraudulent system has become. In the Wonderland Matrix, the more-bankrupt that a (Western) government gets, the less interest it pays on its debts (unless that nation’s name is “Greece”).

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