Have you ever wondered why the sandwich that you pay $10 for now was just $7 five years ago?

This chart scares me. And it should scare you too. It shows the national debt as a percentage of the Gross Domestic Product. In 1975 it was 33%. Now it’s over 100%. This is scary because it will eventually cause massive inflation. This is a result of the government creating new money because it is not able to cover its costs.

Let’s talk about how this works. If the Government prints money it causes inflation because when there is more money chasing the same amount of goods in an economy, prices will inevitably rise.

For example, if there is just $10 in an economy and just one product then the product will cost $10. If the government prints another $10 there is now $20 in the economy so that same product will now cost $20. That is how inflation happens.

If the USA was a company we would have declared bankruptcy decades ago. Eventually, something is going give and it wont be pretty.