Thanks to Joe Biden and Donald Trump, who together added $20 trillion to US debt in the last ten years, we have reached the death zone. Even small increases in interest rates can spin out of control.
Bonner makes an important point, one that echoes an observation from his earlier book Family Fortunes: “Sometimes, credit, confidence, and centralized political authority expand. Sometimes they contract.”
That may be the most overlooked danger in today's debt debate: **the tipping point is not a fixed debt-to-GDP ratio. It is a matter of confidence. And confidence is notoriously difficult to measure until it begins to disappear.
Yet politicians behave as though we are comfortably far from the danger zone, even though nobody can reliably tell us where it begins. Worse, confidence can evaporate much faster than it was built.
Politicians always have an imperative to postpone painful decisions, while the consequences accumulate beyond the next election.
The fact that we cannot see the cliff is precisely why we should be more cautious, not less.
Or any other administration until the time it runs over them by a Mac truck at which time they will say they "did not only see it coming" followed up by "its not our fault" as they head for the door carry bags of assets.
Credit where credit is due. It is easy to finger individual presidents for the fiscal wreckage, but Congress is responsible for voting budgets and programmes.
If this were a presidential, rather than a party issue, it would not be duplicated in all of the western "advanced" economies.
As some would say. "It's in the dialectic." Others would identify the structure of central banking as the culprit.
Current manufacturing activity in the U.S. has shown significant improvement compared to 2020, with the Manufacturing PMI increasing to 55.90 points in September 2026, indicating growth, while in 2020, the sector faced severe contraction due to the pandemic. Additionally, industrial production has increased by 2.2 percent compared to the previous year, reflecting a recovery in the manufacturing sector.
The idea that the dollar could, may, might, be revalued at some number like 100 : 1 or higher should make people's heart skip a beat. Anyone not familiar with history should look at Germany per WW1. A wheel barrow of Marks to buy a loaf of bread. Could it come to America, TBD ?
Reminds be of the joke where some guy brings a wheelbarrow full fiat currency to the bakery to buy a loaf of bread. He parks the wheelbarrow outside of the bakery and some guy comes along and dumps the cash and steals the wheelbarrow.
Bonner makes an important point, one that echoes an observation from his earlier book Family Fortunes: “Sometimes, credit, confidence, and centralized political authority expand. Sometimes they contract.”
That may be the most overlooked danger in today's debt debate: **the tipping point is not a fixed debt-to-GDP ratio. It is a matter of confidence. And confidence is notoriously difficult to measure until it begins to disappear.
Yet politicians behave as though we are comfortably far from the danger zone, even though nobody can reliably tell us where it begins. Worse, confidence can evaporate much faster than it was built.
Politicians always have an imperative to postpone painful decisions, while the consequences accumulate beyond the next election.
The fact that we cannot see the cliff is precisely why we should be more cautious, not less.
No sensible redress of our nation’s financial destiny will occur during this Administration
Or any other administration until the time it runs over them by a Mac truck at which time they will say they "did not only see it coming" followed up by "its not our fault" as they head for the door carry bags of assets.
Credit where credit is due. It is easy to finger individual presidents for the fiscal wreckage, but Congress is responsible for voting budgets and programmes.
If this were a presidential, rather than a party issue, it would not be duplicated in all of the western "advanced" economies.
As some would say. "It's in the dialectic." Others would identify the structure of central banking as the culprit.
From Ai:
Current manufacturing activity in the U.S. has shown significant improvement compared to 2020, with the Manufacturing PMI increasing to 55.90 points in September 2026, indicating growth, while in 2020, the sector faced severe contraction due to the pandemic. Additionally, industrial production has increased by 2.2 percent compared to the previous year, reflecting a recovery in the manufacturing sector.
The idea that the dollar could, may, might, be revalued at some number like 100 : 1 or higher should make people's heart skip a beat. Anyone not familiar with history should look at Germany per WW1. A wheel barrow of Marks to buy a loaf of bread. Could it come to America, TBD ?
We are not invincible !
Jim Marshall
Reminds be of the joke where some guy brings a wheelbarrow full fiat currency to the bakery to buy a loaf of bread. He parks the wheelbarrow outside of the bakery and some guy comes along and dumps the cash and steals the wheelbarrow.
That's a good one!
Jim