10 Signs America s Financial Collapse Is Already Here

So the federal government, they recently just dropped a 245 page financial report. And this is a report that is open to the public, guys. Anybody can see this. And I'm seeing it thanks to one of my subscribers, George. He actually used to work at the Treasury Department and he sent this over to me and I combed through it. And I wanted to show you guys the 10 biggest financial problems that we have in America. And the government straight up admits this with this report. This is all their figures and their numbers that admit how bad a shape we're in as a country when it comes to our financial trouble. You might've heard before how broke we are and how big the deficit is and things like that. But I'll bet you didn't know everything we're going to go over in this report. But let's start with the easy stuff, the deficit, right? We are running a $1.8 trillion deficit. What does that mean? Well, it means that we are spending $1.8 trillion more than we're bringing in. And that increases the national debt by at least that much, but actually more because we keep increasing it. And so that means we are borrowing the difference just to keep things running. And I also want to give you guys an idea of what this all means for everybody who watches this video. In the short term, what it means is that the system keeps going, right? All of the programs stay funded, benefits keep flowing, and the economy doesn't take an immediate hit. But you kind of rob yourself from tomorrow in order to pay for today is what we're doing. Because what this does is it pushes more money into the system than the So by design, they do this because they want inflation. Remember, the Fed's target is 2% inflation per year. This is why when inflation comes down, like they're saying, prices don't. Because once you have inflation, it doesn't go in reverse, guys. We hardly have ever seen a situation where we actually have deflation. It just doesn't really happen. They do everything they can to prevent it from happening. And they're very good at it. And over the long term, this really hurts everyone, especially if you're younger, because this guarantees that we are going to have higher taxes in the future. In fact, the big, beautiful bill that was introduced last year already builds that into the system. It's guaranteeing that our taxes are going to go up in the future, right? But it all looks great today because people are getting tax cuts and things are happening that look good and make the economy look stronger than it is. That's a great example of it. But the reason taxes have to go up in the future is because they have to continue charging you more if they want to continue running these bigger and bigger deficits. Otherwise, the whole system would just collapse. The second thing revealed in this report is that the real deficit is actually bigger. It's more like 2.1 trillion, not 1.8. The reason is future obligations, not just current ones. These future obligations are things like pensions, healthcare, and benefits that are already baked into the system. And funding those later often means more borrowing, more money printing, and more taxes. Basically, all of the above, because that's the only way that they actually can make any of this continue. The third thing this report reveals is that the government is $41.7 trillion in the hole. They have $47.8 trillion in outstanding liabilities and only $6.1 trillion in assets, which brings us to $41.7 trillion in debt. Now, if this was a regular household, if this was any sort of business trying to get by in America, you would have filed for bankruptcy decades ago. But because the federal government has the unlimited printing press, they can get away with it. And how this affects all of us is it shows up in the everyday higher cost of living. It shows up with higher taxes, and it also reduces all of our purchasing power because it continues to dilute the true value of the dollar, which has been falling off a cliff since they took it off the gold standard back in 1971. Number four, debt is already at 99% of GDP. So the total debt now is roughly equal to the entire US economy. And why this matters is because at this level, debt starts to crowd everything else out. So the government has to prioritize paying interest, which means less flexibility for infrastructure, programs, or economic support during a downturn, kind of like what we saw during the pandemic. If we were to have another pandemic right now, and they did all the same things, lockdowns and all this, they wouldn't be able to send out all of these stimulus checks like they did before. And if they did, those stimulus checks would have to be three or four times higher than they were back in 2020 just to be able to buy you the same amount of stuff that it bought back then. And that would probably be the final nail in the coffin where the system would actually collapse if they decided to do that. And it makes our system far more fragile. If interest rates stay high, which is why the Trump administration is basically banging down the Fed's door to lower interest rates at this point. But if they stay high, it increases the carrying costs of the national debt, and it rises at an even faster exponential rate, which actually increases the deficits further. But here's the thing, in order for us to have a stable economy that actually works properly, and in order to actually squash inflation, the Fed would have to raise interest rates a lot from where they're at right now. Forget about holding steady or cutting, they would have to raise interest rates significantly in order to create lower inflation or possibly even deflation. Number five, it states in this report that the national debt is projected to hit 576% of GDP. This is the long-term projection, guys. So what this means in a practical sense for all of us is that the way that things are going right now cannot last forever. The government admitted this in their report. It is mathematically impossible. So if they know that the current trajectory that we're on is mathematically impossible to sustain, why don't they fix it? Well, because the nature of politics is that you don't have to worry about fixing anything that's not an immediate threat today. You do the good old kicking the can down the road and make it the next person's problem. So if the whole thing collapses on their watch, you look like the hero and they look like the idiot. But the reality is when this whole thing actually does collapse, this system, it becomes unsustainable. It doesn't really matter who's in office. People are going to blame who's ever there because that's how people are. But the reality is this is a problem that has been building for decades. Number six, Social Security and Medicare are short $88 trillion. These two programs alone are underfunded by $88 trillion. And the short-term impact is that we have fewer workers supporting more retirees, healthcare costs continuing to rise very fast, and benefits growing faster than the funding. So that leads to another problem that they're going to have to figure out, which is raising the retirement age or increasing payroll taxes or reducing benefits that people receive. And Social Security is going to be broke in the next six years, guys. So they have to figure this stuff out pretty quickly, pretty soon. And my guess is they're probably going to do a combination of all of those things as a temporary fix, right? Number seven, the government is actually still short $79.6 trillion overall. What does that mean? Well, it means that beyond the entitlements, total spending still exceeds revenue by $79.6 trillion in the long-term. So even if the economy grows and they increase taxes, the system is still set up to spend more than it brings in over the long-term. That creates this constant pressure on the economy where growth never really fully translates into any sort of financial relief. So if you're sitting there thinking, these last six years have been tough since the pandemic because of all the inflation and money printing and things like that, number one, you would be right, but you would also be wrong to think that the situation will improve in the future, guys. This is the system. This is the game plan. That's how everything is set up. So you have to figure out a way to out-earn this scenario. That's the only way to actually thrive in the United States of America in 2026. You have to make significantly more money than what you need to live comfortably. What that number is for everybody is different, but because of the way the system is set up to continually take on more debt and run bigger and bigger deficits, this is a guarantee that life is only going to get harder. Because if you think it's hard now, it will get even harder later on once these deficits grow and taxes are higher and inflation reduces your purchasing power even more. Number eight, interest costs are absolutely exploding. Interest on the debt just jumped up $78 billion in just one year. And this hits people directly because interest right now is one of the fastest growing expenses of the federal government. And that means more tax dollars are going towards just servicing old debt, all of these old borrowing mistakes, not even including anything new, which puts even more pressure on people running things to increase your taxes ASAP in any way that they possibly can, at the same time possibly cut back on any of the entitlement programs, which they rarely do, and definitely decreases their ability to respond to any sort of major crisis. Number nine, this report reveals that health care and social costs are surging. Medicare, Medicaid, and Social Security are driving major increases in spending, and this is not optional spending. These are mandatory programs tied to the current demographics of the country. So as the population ages, costs go up automatically and spending becomes harder to control. And for the average person, this shows up in higher health insurance costs, which is what we just saw happen at the turn of this year, and higher payroll taxes over time, which means less money you get to take home from your paycheck and more strain on all the public services, including the health care system as well. Now, the tenth and final thing this report reveals is that the system overall depends on higher taxes. Revenue hit $5.2 trillion, driven partly by higher taxes and the now ruled illegal tariffs. And what that means for you is the system is already leaning on more revenue to stay afloat. And now that they're going to have to refund a lot of this tariff money, it's going to put even more pressure on things. So what are they going to do instead? They're going to borrow more. They're going to print more. They're already doing it right now with the Iran war, guys. They wanted an extra $250 billion to continue this war. All that gets tacked on to what we just talked about. But the thing is they can't borrow too much too fast because it would absolutely explode the yields in the treasury market because investors would get completely spooked and require a major return in order to buy these treasuries, right? So what do they do instead? They tax you silently through inflation. They also change the tax brackets at the IRS. And so what this means is it's not one big overnight government collapse. That's not what I'm talking about here. This is actually a system that continues to function and has continued to function a lot longer than most people ever thought that it could. But the higher these numbers get, the more fragile it becomes over time and the more unsustainable it becomes. That's why I said, if you want to have any chance of getting through this and having a comfortable life, you must significantly out earn your spending or significantly reduce your spending and try to earn more at the same time. That's the only way you are going to be living comfortably, guys. If you give in to the system and you live the way they want you to, constantly in debt and paying off bills, you will never have anything. Because if you never make a significant amount of money to get out of that cycle and not have this debt, you are always going to be paying that debt off and always struggling and always be doing exactly what our government is doing, which is take on more debt just to pay for yesterday's expenses. And not only is our federal government in trouble, but also the Federal Reserve is in major trouble as well. They just posted $18.7 billion in losses as of 2025. And this is now the third straight year in a row of them losing money. In 2023, they lost $114 billion. In 2024, they lost $77 billion. And now 2025, $18 billion. And the losses are shrinking, but still ongoing. And these emergency responses we had during the pandemic is directly responsible for this major loss at the Federal Reserve because the Fed earns interest on bonds that it owns, right? But it also pays interest on bank reserves. So the problem is that it pays more in interest than it collects. They bought up all of these extremely low interest rate bonds during the pandemic, but after inflation shot up and rates shot up, now they were forced to pay much more interest than they were collecting on all of that cheap debt. It says here that the losses are directly tied to the rapid increases in interest rates starting in 2022, because higher rates means higher payments to the banks holding the reserves. And here's something you might not know. The Fed actually used to be highly profitable. Before 2022, they sent hundreds of billions of dollars each year to the Treasury, $870 billion in total between 2012 and 2021. And this helps create an even bigger deficit because money that the Treasury should normally be bringing in from these profits, they are not. So as you can see, this whole lockdown that we did and all the money printing, guys, this had massive repercussions in so many different ways. These are just a couple of the big ones that I mentioned in this video that we are still paying for today and will continue to pay for into the indefinite future. And one thing I've seen in the comments a lot is, well, how do you expect Americans to be financially responsible, Michael, if the government sets the worst example in the world for everybody? Well, that's a fair point. And unfortunately, too many people try to live and borrow like the federal government, but they forget they don't have the unlimited printing press. The reason we know this is because according to data that just came out from Experian, they're saying that personal loans are absolutely exploding right now. 38% of Americans now have a personal loan, up from 31% back in 2017. There are now over 67.5 million accounts and the balances are over $207 billion of unsecured debt. The reason Experian says this is happening is because total credit card debt has been absolutely exploding. It's at 1.28 trillion and the average credit card APR is around 22%. However, personal loan rates are about half of that at about 11.6%. So people are refinancing a lot of this credit card debt and putting it onto personal loan debt to lower their interest rates, which isn't a terrible idea as long as you don't use the credit cards anymore, right? That's where most people fail with this method. Now, once you've freed up all of that credit card debt and you have more spending power, it really entices you to go ahead and use it when you shouldn't be. For example, if you have $10,000 in credit card debt at 22% interest, you're paying $2,200 a year just to service your debt. But if you have that same balance on a personal loan, now you're only paying $1,165 a year. So you could be saving almost $1,000 a year on interest payments. Now, what you really should be doing is paying that debt off entirely. Refinancing it and paying a lower interest rate should just be the beginning, right? That should be the beginning of trying to pay that debt off ASAP. It shouldn't be a way to create a little bit of financial relief and then massively increase your debt even further because now you're feeling that relief. Experian also says that personal loan inquiries are up 16% year over year. And 42% of consumers say they're likely to use one in 2026. And 60% say that they have used one before. But the problem is people are now using loans for everything, just like the federal government, okay? It's not just for debt consolidation, but people are using it for emergencies, home improvements, medical bills, vacations, even everyday living expenses. This is basically financing a lifestyle that people can't afford. At the same time, credit is becoming easier than ever to get. And subprime borrowers are the largest drivers of growth for this borrowing. In fact, subprime loan originations were up 32.5% year over year. And here's something else that they try to do to make look not as bad as they really are, okay? They're saying personal loan delinquencies are still pretty low and stable at only 4%. But credit card delinquencies are rising to the highest levels that we've seen since 2010. And we all know what happened back then. 2010 was the aftermath of 2008 and a lot of people lost everything and they used credit cards to get by. And once they couldn't pay them off, guess what? We're not paying the bill. And with 55% of people now using credit just to borrow and pay for the essentials, we are heading for the same exact crisis situation that we saw back then, guys. This is why I'm constantly harping on people to earn more than they spend and to have emergency savings and to buy gold and silver and have as little debt as possible, preferably none, unless you have a mortgage. So if you learn anything from this video, it should be this. It should be that the current system that we are on has little to zero chance of changing until it has to, guys. So until the whole thing actually implodes, it's going to be like this indefinitely. And so the only way that you can get ahead and outsmart it is by out-earning your spending by a wide margin. That is the only solution to these problems financially. That's it. And I know people will say that is easier said than done, which is true, especially with all the temptation there is to spend money and how easy it is to get access to credit. But I'm telling you, I promise you that if you do this and you tighten up the massive dividends from doing this, because people who take on massive amounts of debt don't get any reward in the end. Yeah, maybe you might be able to file for bankruptcy once or twice in your life and shed some of that debt off and never pay it back, but you're constantly going to be chased by predators. You're never going to really have anything. And anything you do have is probably going to be temporary until it's being forced to be sold off in your next bankruptcy, guys. So if you want to be able to sleep at night and you want to be able to pay your bills, out-earning your spending is the only way to do it. Exactly the opposite of how the government operates, which kind of sucks that we have to be the responsible ones so we can pay for their irresponsible behavior, but that's how it works. And unfortunately, if you don't like it, your only option is to move somewhere else and renounce your US citizenship.