The article highlights the alarming level of US federal debt, exceeding $36 trillion and growing. This debt is linked to the monetary crisis initiated in 1971 after abandoning the gold exchange standard. The author criticizes the lack of serious action to address these intertwined issues. Preserving Trump's tax cuts while avoiding necessary spending cuts is seen as irresponsible and fiscally unsustainable.
The shift to fiat money is blamed for exacerbating the crisis. The article argues that the dollar's declining value in gold has facilitated the surge in debt, as the government can repay its loans with devalued dollars. Rising borrowing costs reflect growing concerns about the federal government's creditworthiness.
The article suggests enacting spending cuts to balance the budget and addressing the monetary policy issues. The author proposes the formation of a monetary commission to examine the Federal Reserve's performance and the effects of fiat money since 1971, an idea previously supported by Republican platforms. This is presented as a way to acknowledge the role of debt and fiat money in the current crisis.