SovereignLife Freedom Blog

Moody’s rating agency has warned that the USA and other developed countries face a critical moment – likely to be 2013 – when in the US, interest payments on debt will equal 14% of tax revenues. According to the agency this is the tipping point.

Once debt servicing reaches such a critical point it continues to rise, eating up more and more of the annual tax revenues. And this can only be made worse by anticipated interest rate rises into the future.

Given the dire warnings, and the all-too-obvious shocking fundamentals apparent to those who look closely, it’s going to be crunch time in more ways than one.

One thought occurs to me – amongst all this potential doom and gloom. This level of debt can bring down governments (and no doubt will), and the social dislocation can cause people to cross the mental threshold required to accept new ideas. So it’s quite possible that the debt crisis will represent an opportunity – and opportunity to move away from centralised state control, as people search for new answers to apparently intractable problems.

Of course, a different direction is also possible – that of moving towards an increasingly fascist form of governance. I see both scenarios as possible – even perhaps coexisting on the planet as a whole – but only the unfolding of actual events will reveal the exact nature of what is to come.

One thing is for sure. No amount of burying heads in sand and pretending nothing is wrong will prevent the day of reckoning.