Tag: debt

Germany’s Fiscal Suicide

Germany’s general state debt spiral should be a constant feature in daily headlines. Its prominence should force policymakers into a radical fiscal turnaround. Yet while Germany is working under immense pressure to ban the AfD, forming alliances with left-wing extremists and eroding the political culture, on the other side of the Atlantic, preparations are underway for the approaching storm.

We live in record-breaking times. In the first quarter of this year, global debt surged to a record high of $324 trillion. This milestone becomes significant when compared to global GDP, which currently hovers around $110 trillion. Governments worldwide now owe 100% of GDP — an alarming reality, as no modern state has ever managed to free itself from the ensuing fiscal bind once this threshold is reached. Debt levels of 80-90% mark the “point of no return.”

The Tipping Point of the Debt Spiral

At this scale, debt reaches a critical mass. It inevitably forces an escalating debt service burden that drains scarce capital from the private sector to finance bloated social funds, ultimately leading to the same scenario we faced 15 years ago during the last severe sovereign debt crisis. Back then, Greece’s impending default sent shockwaves across credit markets. Central banks intervened with trillions, and governments stepped in to rescue debt-laden pension funds and banks with taxpayers’ money.

Greece’s national debt stood at 143% at the onset of this crisis, and it is now about 155% — no debt consolidation has occurred. The southern European countries are, quite frankly, sinking into a swamp of debt. Italy, with 140%, Spain at 120%, and France’s budget deficit at 7%, leave much to be desired. On average, the EU’s debt-to-GDP ratio is now approaching 95%, closing in on the global benchmark of 100%.

Bond Vigilantes Lurk in the Markets

We must now prepare for the moment when a tipping point in bond markets triggers a series of sovereign defaults. This will occur when a growing crisis of confidence among investors, banks, and investment funds translates into a sell-off cascade in the bond markets. Let’s keep an eye on interest rates: if they rise with high volatility and market volume, general unrest is on the horizon. We have already witnessed the emergence of “bond vigilantes” this year — critical bond investors who pull the plug when debt levels rise. On the day it was announced that Germany would borrow about a trillion euros over the next four years and issue corresponding bonds, the interest rates on German bonds surged by more than 40 basis points.

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Sustainable Debt Slavery

The UN’s 2030 Agenda for Sustainable Development is pitched as a “shared blueprint for peace and prosperity for people and the planet, now and into the future.” At the heart of this agenda are the 17 Sustainable Development Goals, or SDGs. 

Many of these goals sound nice in theory and paint a picture of an emergent global utopia – such as no poverty, no world hunger and reduced inequality. Yet, as is true with so much, the reality behind most – if not all – of the SDGs are policies cloaked in the language of utopia that – in practice – will only benefit the economic elite and entrench their power. 

This can clearly be seen in fine print of the SDGs, as there is considerable emphasis on debt and on entrapping nation states (especially developing states) in debt as a means of forcing adoption of SDG-related policies. It is then little coincidence that many of the driving forces behind SDG-related policies, at the UN and elsewhere, are career bankers. Former executives at some of the most predatory financial institutions in the history of the world, from Goldman Sachs to Bank of America to Deutsche Bank, are among the top proponents and developers of SDG-related policies. 

Are their interests truly aligned with “sustainable development” and improving the state of the world for regular people, as they now claim?  Or do their interests lie where they always have, in a profit-driven economic model based on debt slavery and outright theft?

In this Unlimited Hangout investigative series, we will be exploring these questions and interrogating – not only the power structures behind the SDGs and related policies – but also their practical impacts. 

In this first instalment, we will explore what actually underpins the majority of the 2030 Agenda and the SDGs, cutting through the flowery language to deliver the full picture of what the implementation of these policies means for the average person. Subsequent instalments will focus on case studies based on specific SDGs and their sector-specific impacts. 

Overall, this series will offer a fact-based and objective look at how the motivation behind the SDGs and Agenda 2030 is about retooling the same economic imperialism used by the Anglo-American Empire in the post-World War II era for the purposes of the coming “multipolar world order” and efforts to enact a global neo-feudal model, perhaps best summarized as a model for “sustainable slavery.”

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DOGE Announces Deactivation of 500,000 Federal Credit Cards

The Department of Government Efficiency (DOGE) said on May 7 that it has canceled about half a million “unneeded” credit cards used by federal agencies.

In a post on social media platform X, DOGE wrote that over the past 10 weeks, its program to audit “unused” or “unneeded” credit cards has been expanded to 32 federal agencies.

DOGE, led by tech billionaire and Trump administration adviser Elon Musk, said that more than 500,000 agency credit cards were deactivated in that time period, out of roughly 4.6 million active cards and accounts used by the government.

“So, still more work to do,” the organization wrote in the post, which included a screenshot of a spreadsheet showing the canceled agency cards.

The spreadsheet showing what cards were canceled included ones used by the Office of Personnel Management, General Services Administration, Labor Department, Small Business Association, Treasury Department, Commerce Department, Interior Department, Education Department, Environmental Protection Agency, Housing and Urban Development Department, Defense Department, Health and Human Services Department, State Department, and others.

The May 7 statement means that DOGE has canceled another 30,000 credit cards used by agencies since mid-April, when it provided the last update on the effort.

At the time, Musk reposted DOGE’s comment and claimed that “twice as many credit cards are issued and active than the total number of government employees.”

DOGE’s website says that it has saved about $165 billion, or $1,000 per taxpayer, since it was established through an executive order issued by President Donald Trump in January.

Days before that, top congressional Democrats alleged that DOGE, the Trump administration, and Musk were holding up some $430 billion in funds that they said were appropriated by Congress.

Trump’s drive to downsize and reshape the federal government has already led to the dismantling of entire agencies, such as the U.S. Agency for International Development and the Consumer Financial Protection Bureau.

DOGE has been a major part of that effort, and the White House has said it is responsible for tackling what it calls fraud, waste, and abuse in the federal government, while streamlining operations.

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US demanding $100bn compensation from Ukraine

The US continues to insist that Ukraine should pay it tens of billions of dollars as part of a resource deal in compensation for American assistance in the conflict with Russia, but has scaled back its initial assessment of the final amount, Bloomberg reported on Wednesday, citing sources.

Washington and Kiev have for weeks been discussing a resource deal – a concept first floated by Vladimir Zelensky last year – which would grant the US access to Ukraine’s deposits of rare earths.

Following a round of talks in Washington last week, officials from the administration of US President Donald Trump cut their estimate of American assistance to Kiev from more than $300 billion to about $100 billion, Bloomberg sources said. Ukraine itself assesses total aid US during the conflict with Russia at just over $90 billion.

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Trainwreck Tim Walz Took Minnesota From A $19 Billion Surplus To A $6 Billion Deficit

Americans have seen a lot of Tim Walz lately as the failed vice-presidential candidate has held town halls nationally criticizing national Republicans. In a telling interview, he admitted to the New York Magazine this week, “90% of the time, I can be really good, but about 10% of the time, I can be a train wreck.”

And in an interview with Jake Tapper that was itself something of a train wreck, he rejected the conclusion that every American with a pulse now acknowledges: that Walz and other Democrats should have forced Joe Biden off the presidential ticket in light of his obvious cognitive decline.

Walz is indeed often a train wreck, and as Walz tramps around the country seeking to place himself as the foil to congressional Republicans and Donald Trump, to really understand what a disaster he is, we only need to look at the ongoing mess he has left behind in Minnesota.

A Fiscal Disaster of Walz’s Own Making

It is not hyperbole to say that Minnesota’s finances are in free fall. After boasting a record-setting $19 billion surplus in 2022 — larger than the full budgets of 20 U.S. states — the Minnesotans learned earlier this month that it faces a staggering $6 billion budget deficit. How did this happen? In 2023, Walz and his Democrat allies in the legislature embarked on the most reckless spending spree in Minnesota history, funneling billions into pet projects and giveaways for every left-wing constituency imaginable. The surplus wasn’t used to shore up Minnesota’s long-term financial stability or to return money to taxpayers. Instead, it was squandered in the most reckless fiscal step taken in Minnesota’s modern history.

Walz’s relationship with the truth has always been a distant one, and this case was no exception. Walz tried to falsely pin the financial crisis on the new Trump administration, despite state officials confirming that federal policy did not affect their budget projections. 

Among the drivers of the state’s coming deficit is a stagnant Minnesota economy. Although once among the strongest in the country, the state now routinely ranks in the bottom 10 states for GDP growth. Job creation has stagnated, and businesses are increasingly looking elsewhere to expand or move. Meanwhile, Walz has increased tax burdens on individuals and businesses and made Minnesota one of the least competitive states for economic growth.

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Deadbeats! Saudis won’t pay $13.7M bill for US military fuel

Between 2015 and 2018, the United States supplied Saudi Arabia with tens of millions of dollars worth of jet fuel in support for the kingdom’s bombing campaign in Yemen. Seven years later, the Saudis refuse to repay most of their debt. And they are being rewarded for it.

A Department of Defense report that was sent to Congress last October, reviewed by Responsible Statecraft, and previously unreported suggests that Pentagon officials are becoming increasingly desperate to recoup an outstanding $13.7 million in fuel costs that Saudi Arabia owes the U.S.

“DLA energy and US central command will continue to engage the Saudi Ministry of Defense and Ministry of Finance through United State Military Training Mission – Saudi Arabia scheduled meetings, various MOD/MOF and DoD Key Leader Engagements, face to face meetings within the CONUS and Saudi Arabia, and through email correspondence until the SLC fuel debt is paid in full,” the report stated.

In 2018, the Pentagon realized it had made an accounting error. The Pentagon had undercharged Saudi Arabia and the UAE by $36 million for jet fuel and another $294 million in flight hours for U.S. tanker aircraft that refueled Saudi and Emirati warplanes in midair.

With Washington’s help, the arrangement allowed Saudi and Emirati jets — which, besides actual military targets, bombed hospitals, schools, marketplaces, and weddings — to stay in the air for up to three hours instead of a mere 15 minutes. But instead of the two oil-rich Gulf nations footing the bill for the aerial-refueling process, as is required by law, it was the American taxpayer.

Seven years later — while the larger flight hours bill has been paid — Saudi Arabia has yet to pay $13.7 million worth of its jet fuel debt. The UAE, which owed the U.S. around $15 million for jet fuel, has reimbursed Washington in full.

The kingdom certainly does not lack the funds. The Saudi sovereign wealth fund oversees $925 billion in assets.

Rather, Saudi Arabia appears to be pleading ignorance; the Intercept reported that Saudi officials told representatives of the Defense Logistics Agency and U.S. Central Command last year that they were “not aware of the outstanding debt and requested some additional time to investigate the issue.”

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1500+ “Zombie Programs”, Over 8% of Federal Budget Spending at $516 billion, is Unauthorized, Possibly Illegal

Hardworking Americans face rising prices and a weaponized federal government, yet more than 1,500 federal programs are still receiving billions in taxpayer dollars despite their legal authorizations expiring years or even decades ago.

A federal program is separately authorized and funded by Congress. If a program is not authorized, or authorized at a specific level, it is not supposed to receive funding. But because of Congressional inaction, apathy, and inattention, these programs regularly receive such funding even though they lack legal authorization.

491 specifically-identified unauthorized programs and federal spending accounts for roughly 8% of the annual federal budget of $6.45 trillion, or $516 billion dollars. The DOGE effort to cut government fraud, waste, and abuse has so far saved taxpayers $140 billion by comparison.

The Congressional Budget Office couldn’t find or estimate the dollar amounts spent by the other 1,000 zombie programs they identified.

According to a recent investigation by RealClearInvestigations, the United States government is quietly funding what experts are calling “zombie programs” — agencies and initiatives that legally expired but are kept alive through backdoor budget tricks and annual appropriations.

In 2016, candidate Trump even mentioned this concept of refusing to pay for unauthorized programs as a way to get more funding to the military. The media ‘fact checked’ Trump’s claim as ‘false’ even though it was true, because, they said, Congress doesn’t have to follow the law.

One of the most egregious examples? The Legal Services Corporation (LSC), a taxpayer-funded outfit originally established to provide free legal assistance to low-income Americans. Congress let its authorization expire in 1980, yet the agency is still alive and well in 2025 — operating with 135 employees and a $560 million budget.

Republicans in 2011 tried to make modest cuts to the LSC, and the left-wing mainstream media said it would cause major social problems. Leftist media said it was going to “gut a crucial anti-poverty lifeline.” Left-wing non-profits rallied to protect this subsidy and corporate welfare to the nation’s attorneys.

The LSC has long been accused of funding politically motivated litigation, supporting left-leaning advocacy groups, and diverting taxpayer money into causes far beyond its original mandate. In past decades, LSC grantees have been caught assisting in lawsuits to block welfare reform, challenging voter ID laws, and filing environmental and immigration-related lawsuits aimed at advancing progressive policy goals rather than defending the poor in court. Some grantees have used federal funds to lobby state legislatures, coordinate with activist networks, and even sue landlords and small businesses en masse under dubious legal theories.

45 years after it was supposed to be shut down, the LSC is still spending hundreds of millions with zero legislative oversight.

This problem has been plaguing Congress for years, and many white papers and organizations have attempted to bring this problem to the legislature’s attention for many years.

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CBO Issues Dire Forecast for US Debt

The US Congressional Budget Office is warning that the federal deficit has hit a point of no return. It is far too late to cut wasteful government spending. Politicians have kicked the can down the road for far too long and left us with a financial system held up through perpetual borrowing that cannot be reversed.

The CBO’s long-term forecast shows the federal deficit rising to 7.3% of GDP by 2055, but the figure is currently at 6.2% as of 2025 and this is an optimistic report. In contrast, the 30-year average from 1995 to 2024 was 3.9% of GDP. Public debt is projected to hit 156% of GDP by 2055, up from the 100% of GDP we face today.

Now the CBO mentioned that Trump’s tariffs could negatively impact the economy but we reached the point of no return years ago. Trump cannot be blamed for the current situation in the least. “Mounting debt would slow economic growth, push up interest payments to foreign holders of U.S. debt and pose significant risks to the fiscal and economic outlook,” the Long-Term Budget Outlook: 2025 to 2055 stated.

The Baby Boomer generation is at or nearing retirement and Social Security benefits are currently at 5.2% of GDP. The CBO believes this will reach 6.1% of GDP in 2055 but fail to recognize the fund is drying up. The Ponzi Scheme will come crashing down.

Interest expenditures alone have hit 3.2% of GDP as America. In 2024, the US spent $881 billion simple to finance its massive debt, and that figure is projected to reach $1.8 trillion by 2035. We spend more on servicing debt than we do on defense spending at this point.

Raising taxes cannot solve this massive issue, but that will not prevent the government from attempting to extort the people to cover their fiscal mismanagement. The government knows it is trapped and will continue to hold off on paying down their debt as long as possible. Worse still, other nations are decreasing their investments in Treasuries as we have seen with China and Russia. Japan is our main buyer now but they have their own colossal problems.

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Treasury burned through $286BN of its cash balance in the past month

The US Treasury Department has burned through cash at a historic rate in the last month – an alarming signal that may require lawmakers to intervene to prevent the country from defaulting on the national debt.

The agency, now led by former hedge fund manager Scott Bessent, has burned through $286 billion in the month of March alone.

This is the largest single-month drawdown in American history, and it’s only rivaled by the Treasury spending $279 billion in August 2021 during the height of the pandemic. 

The Treasury General Account (TGA), essentially the US government’s checking account, now has just $280 billion left for disbursing funds for Social Security checks, government salaries and other crucial programs millions of Americans rely on.

The last time the Treasury’s coffers dwindled this low was in 2023 when the US breached the debt ceiling, a legal limit set by Congress on how much the government can borrow to pay its bills.   

By May of that year, the TGA, which is managed by the Federal Reserve, was down to just $37 billion. 

This prompted then-President Joe Biden and then-House Speaker Kevin McCarthy to strike a deal suspending the debt limit. 

The government proceeded to issue new debt in the form of bonds and by October 2023, the TGA soared back up to more than $800 billion. It stayed at around that amount give or take $100 billion for the rest of Biden’s term.

On January 21, 2025, the day after Trump was sworn in, the Treasury was still flush with $704 billion. The account balance has fallen by an unprecedented 60 percent in just three months.

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The American Public Will Have To Step In To Eliminate The Parasitic Bureaucracy

The reasons why conservatives fight so adamantly for smaller government have never been more obvious than they are today. Even before the DOGE audits, the galactic cost of federal debt spending was clearly crushing our economy. The interest payments alone are costing the American taxpayer around $1 trillion annually. If nothing changes for the better the national debt will hit $54 trillion by 2034.

Of course, this is unsustainable. The system will completely collapse well before another decade ends; under the weight of rising interest rates or under the weight of exponential inflation. We are already seeing the results of the spending bonanza through ongoing stagflation. Prices on most goods are 30% higher (or more) in the past 5 years. Home prices and rent costs are up at least 50% on average. Americans are being financially suffocated.

The US public wants a reckoning for this theft – And yes, it is theft. Our government, like an MC Escher drawing, is an endless maze of dead ends and black holes. It’s a vampiric organism that siphons money from taxpayer pockets, infinitely churning and embezzling and feeding until there is nothing left. It will not stop, until we make it stop.

Part of this parasite’s defense is to pretend like it doesn’t exist. We know it exists because we can see our blood being drained; we can see the results. But proving that it exists is another matter and it was nearly impossible because the only entity that has been allowed to audit the government is the Government Accountability Office (GAO). In other words, the government audits itself.

Most of our government apparatus is NOT elected. The vast majority of it is created from thin air through bureaucracy. Each new tentacle, once created, grows without regulation and forms new tentacles until there is no way to tell what connects to what and where all the money is going.

The original source of this bureaucracy is a cabal of ultra rich elites backing unaccountable NGOs. They helped to create the system over decades so that they could slither back and forth from government to NGOs to corporations without being noticed. The revolving door became standard and the same wealthy moguls and social engineers heading up think tanks and non-profits and international conglomerates were now able to cycle into various government agencies and change policy to benefit them.

Without the bureaucracy the power of the elites is greatly diminished. That is to say, bureaucratic agencies ARE the true power in government – Not presidents, not congressmen, not senators, and certainly not the American people. Political parties can change, presidents can change, the US can go from red to blue and back again, and the system remains mostly the same.

Until the Trump Administration and DOGE, no one has even tried to audit the government and figure out what the majority of these agencies are doing. The same goes for the Federal Reserve Bank, which facilitates fiat cash beyond the limits of taxpayer funds. They make deficit spending possible and allow the bureaucracy to grow without restriction. The Fed has never faced a full audit either, and good luck trying to get Congress to institute one.

The bottom line is this: The government has been deliberately engineered in such a way that nothing can ever be fixed or reformed. The existence of “the bureaucracy” as we know it today was never intended by the Founding Fathers and it should not be allowed to remain. It is the “Shadow Government”, or at least, it is the primary mechanism by which the Shadow Government rules over the US. Get rid of the bureaucracy and the elites lose everything.

This is why the global geopolitical reaction to DOGE has been so insane and violent; the parasites are seeking to protect themselves and keep their blood supply flowing.

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