It’s doubtful that any of these larger-than-life numbers have much of an impact on most people. It’s simply out of their reach to relate to debt this large.
However, it is having, and will have, a much larger affect on their wealth.
The first problem is servicing the $9.5 trillion of funded debt. Half of this is foreign-held (thanks to the “Rubinomics” of the Clinton years), as well as largely short term. With interest rates rising, this debt is becoming more costly to service.
What is happening is equivalent to the U.S. taking on the mother of all variable-rate mortgages!
So what does the government do to “keep up” with this mess?
Simply print more money! Of course, this devalues the dollar (as I have discussed), and in turn steals wealth from you, like a slow drain on your savings.
The U.S. government will then likely point the finger at foreign governments who would of course not be happy about the U.S. exporting inflation and essentially repudiating the debt.
As foreign investors begin to understand our economic problems, the actions they take to protect themselves will put even more pressure on our economy, and the U.S. dollar.
The U.S. government is essentially paying it’s Visa bill with a Mastercard. A 3rd-grader could figure out that this will catch up to them. The result of this stupidity of our government will be a drastic adjustment in exchange rates with currencies of other countries, making Americans much poorer compared to the rest of the world, restricting our ability to consume.
So the ridiculously huge national debt means a reduction in your quality of life, perhaps a dramatic one. However, you can avoid a lot of this by simply getting your dollars into real money (gold), get out of debt, and of course, following along with the advice given on this blog!