$9 Trillion of the National Debt Must be Paid Back in 2026
The GDP of the world is $100 trillion. So if every single nation on earth spent 9% of their GDP on US debt then we could get through 2026. However, because of BRICS we know that 50% of the world's GDP is not going to be buying US debt, and because of Japan's financial woes we also know one of our biggest buyers of US debt will also not be a buyer. To make things worse it is very likely that many of these countries will dump the debt they have forcing the US to raise rates.
OK, so this means that 40% of the world's GDP nations will need to invest close to 25% of their GDP into US debt. Now this will be at a time when everyone is pumping all the money they have into AI to compete in this AI arms race. I think it is safe to say they will not be investing 25% of their GDP into US debt.
OK, so this means the US will be printing money to pay the debt. That is QE 5. The problem with this is that when you print money it is inflationary and the worst thing for bonds is inflation. No one wants to buy bonds that are paying 3% if inflation is 4%.
So what are other countries doing that are also in a jam? China just passed a law on "mandatory cremation" which means they are going into cemeteries, digging up the bodies, cremating them, and then selling the land to developers. That is the thing that all nations do in a situation like this, not necessarily cemeteries, but they will seize assets. The flip side of "you will own nothing" is that the government will seize what you do own to pay off their debts.