If you’re liberty minded no doubt you’re concerned about the reckless and unrepayable debt the US government has racked up.

Although I once found the US national debt depressing I don’t worry about it much anymore. The following truths help my mindset:

  1. The US government isn’t able to repay it’s debt and thus it won’t
  2. While the debt does impact me it is not MY debt–I don’t take ownership of it
  3. There are practical steps I can take to protect myself from reckless government spending

1. The US government can’t repay it’s debt.

If the government were to repay it’s debts that would mean paying back all it’s lenders with money of the same value. The government has no money and so how would it acquire money? The government could sell assets or seize private property (higher taxes, seizing bank accounts, etc).

While the government does and will continue to try these options, they won’t work, the debt is too big.

The government will rely on two options to NOT repay it’s debt.

  1. Honest Default
    • I could see the US telling China, “Sorry, we’re not paying you anymore!” China would have to be sufficiently vilified to “justify” why they don’t deserve to be repaid
    • This would also be shooting the US government in the foot because China is subsidizing the US government’s recklessness
  2. Dishonest Default
    • This is the most likely and we’re already seeing this. The US government may never formally default, they’ll pay dollars to everyone who loaned money, but they will print the money via the Federal Reserve to pay the debt back. This IS inflation and reduces the value of each dollar.
    • This is the worst option because it means that the US government is destroying the dollar and thus the standard of living for people in the US. This will cause a lot of pain and destruction.

2. It’s not my debt

My parents instilled in me the importance of saving, avoiding debt, and being financially responsible. So it was very hard for me when I found out the government was not on board with being responsible.

How could “the richest country in the world” owe trillions of dollars?

I worried. It bothered me.

“How are we going to repay this debt?” I wondered.

Now I know that I am not the government. There is no “we”. It’s not my debt.

Just because I had the opportunity to vote for a representative doesn’t mean I’m responsible for the debt. I didn’t choose to go into debt and I didn’t consent to the debt. It’s not mine. I’m a net payer of taxes and I didn’t choose to waste that money. It was taken from me.

3. I can protect myself

My previous point is the US government’s unrepayable debt is not MY debt. I realize that there are people in the government who believe that it is. They want me to identify with the government and will use language like “we owe it to ourselves”, or “it’s our patriotic duty to pay taxes” and other nonsense like that.

It isn’t my debt and I’m not responsible for it but I would be very unwise to ignore the debt.

I’m not going to argue with people who make these fallacious statements.

What I will do is take steps to legally remove myself from the system. I own some physical gold and I own bitcoin. I have investments overseas in jurisdictions that don’t milk their tax cattle as hard as the US government. I have investments that benefit from the inflation the government is creating to dishonestly default on their debts. I don’t take on non-productive debt. I live responsibly in my own life.

Governments inflate the money supply to reduce their debts, inflation destroys dollars. But there are ways to grow and protect your wealth. For more examples and information, visit HowIGrowMyWealth.com.