The $64 Trillion Time Bomb Is Ticking

What happens when half of all government income goes just to pay interest?

According to projections cited by veteran investor Peter Grandich, the United States is hurtling toward a $64 trillion U.S. debt crisis within the next decade. That’s not fringe speculation — it’s based on estimates from the Congressional Budget Office.

If interest rates average just 5%, servicing $64 trillion in federal debt would cost:

• Over $3 trillion per year in interest alone

• Roughly half of total federal income

• More than defense, Medicare, and infrastructure combined

This isn’t a slowdown.
It’s what Grandich calls the “granddaddy of all financial fiascos.”

$64 Trillion U.S. Debt Crisis: The Math Doesn’t Work

When Grandich entered the financial world in 1984, the U.S. didn’t even have $1 trillion in debt.

Today?

• National debt is approaching $40 trillion

• The CBO projects $64 trillion within a decade

• Interest expense is the fastest-growing line item in the federal budget

• States and municipalities are also drowning in debt

Let that sink in.

At $64 trillion:

• Even if federal income rises to $6 trillion annually…

• Roughly 50% would go to interest payments

• Leaving dramatically less for Social Security, defense, or emergency spending

There is no historical precedent for a government operating normally under those conditions.

And yet Wall Street shrugs.

Tariffs, Trade Wars & Political Paralysis

Layer on top of that:

• Escalating global tariffs

• Political gridlock in Washington

• Increasing odds of divided government

• Shrinking global confidence in U.S. leadership

Grandich argues that the honeymoon phase is over. Markets were used as a political scoreboard. But the stock market’s gains disproportionately benefited the top 1% — while two-thirds of Americans live paycheck to paycheck.

Meanwhile:

• The top 10% own 86% of financial assets

• The top 1% now own more wealth than the entire middle class

This is not a stable economic foundation.

And foreign governments are watching closely.

De-Dollarization Is No Longer a Theory

For years, de-dollarization was dismissed as alarmist chatter.

Not anymore.

Central banks — especially across Asia — are aggressively accumulating gold. According to the World Gold Council, central banks have been buying gold at record levels.

Why?

Because:

• The bond market is unstable

• The Federal Reserve holds massive unrealized losses

• Trust in U.S. fiscal discipline is deteriorating

• Geopolitical alliances are shifting

As nations question long-term dollar dominance, gold is increasingly viewed as neutral, apolitical money.

This is not retail speculation.
This is sovereign positioning.

Why Gold and Silver Keep Winning

For decades, paper markets like COMEX and London dominated price suppression. But physical gold trading has increasingly shifted toward Asia, reducing Western leverage over pricing dynamics.

And when bearish pressure recently attempted to “smack down” the gold market?

Prices rebounded swiftly.

That’s not normal behavior in a manipulated bear cycle.
That’s structural demand.

Even mainstream financial institutions — once openly dismissive of gold — are now recommending portfolio allocations.

Think about that.

If pension funds, institutions, and advisors shift from 0.5% allocation to just 2–3%:

• Demand shock alone could drive prices dramatically higher.

• Silver — historically more volatile — could amplify those gains.

This isn’t speculation. It’s math.

The Real Crisis: Debt Is the 800-Pound Gorilla

Grandich calls debt the dirtiest four-letter word in finance.

And the problem isn’t just federal:

• 25 states struggle to balance budgets

• Major cities face fiscal insolvency

• Corporate debt remains elevated

• Consumers are financing lifestyles one level above their means

Seven or eight out of ten households are effectively borrowing from the future.

Eventually, the future arrives.

And when debt servicing overtakes productive spending, something breaks.

Empires historically don’t collapse overnight — they decay under the weight of debt and internal division.

Gold vs Dollar: Wealth Preservation in a Monetary Reset

If half of government income goes to interest, what happens to the dollar?

History suggests:

• Currency debasement accelerates

• Inflation becomes policy

• Financial repression increases

• Capital controls become plausible

That’s why physical gold and silver remain critical tools for wealth preservation.

Unlike fiat currency:

• Gold is no one’s liability

• Silver is tangible and historically monetary

• Both are globally recognized stores of value

• Neither depends on political promises

In periods of monetary stress, tangible assets outperform paper confidence.

Gold is not about trading headlines.
It’s about protecting purchasing power.

As the $64 trillion debt crisis unfolds, the question isn’t whether volatility increases.

It’s whether your retirement is positioned on the right side of monetary history.

Conclusion: The Granddaddy of All Fiascos

A $64 trillion debt trajectory.
Half of federal income consumed by interest.
Political paralysis.
De-dollarization accelerating.

This is not fearmongering.
It’s arithmetic.

The “granddaddy of all financial fiascos” isn’t coming — it’s compounding.

The real decision now is whether to remain fully exposed to the dollar system… or strategically diversify into tangible assets like gold and silver before the window narrows.

Because once interest payments dominate the federal budget, policy choices become desperate.

And desperate governments rarely protect savers.

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About ITM Trading

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