When the U.S. Government needs money, it turns to Treasury Bonds—a financial instrument that represents an obligation or promise to repay. But what does this really mean? In essence, the government is creating a contract with lenders—also known as creditors—to borrow money now with a promise to repay the borrowed amount plus interest in the future. Simply put, the government is asking, “Hey, we’re broke, want to lend us some money?” and in exchange, they promise to pay it back, with interest.

The lenders could be anyone—from government entities and retirement funds to investment banks and even foreign nations like China and Japan. Treasury Bonds are issued by the U.S. Treasury and auctioned off to any institution or individual willing to buy them. When someone purchases a bond, they are essentially lending money to the U.S. Government. The total value of these Treasury Bonds represents what is now known as the “National Debt,” which is currently exceeding a staggering $36 trillion.

To put that number into perspective: the U.S. government is borrowing over $130,000 every single second, all while the nation struggles with widespread poverty. This vast amount of debt, which amounts to 36 trillion dollars, 36,000 billion, or 360,000 million, is mathematically impossible to repay with the current money supply. This creates a dangerous and unsustainable system that many argue mirrors a Ponzi scheme. In simple terms, the government cannot pay back the debt without continually borrowing more, relying on the continuous flow of loans from creditors. The game goes on as long as lenders continue to lend—but it will eventually end when they stop. That is when the “music stops”—the default.

Inflation is an essential part of this system. It acts as a hidden tax on future generations, compounding over time in an exponential manner. This has the potential to lead to hyperinflation or a loss of faith in the paper currency. Throughout history, hyperinflation has often been a response to the irresponsible monetary policies that preceded it.

So, when Treasury Bonds are issued, the government is essentially stealing purchasing power from the future and spending it in the present. This process benefits those who receive the newly created currency first, as they can purchase goods and assets before inflation takes hold. But as more currency enters circulation, the value of that currency erodes, hurting those who hold it in the long term.

In conclusion, the U.S. government’s reliance on Treasury Bonds to fund its operations may appear sustainable in the short term, but the growing national debt represents a systemic issue that could unravel over time. With borrowing accelerating and inflation rising, the inevitable collapse of this system could cause widespread economic pain and a loss of confidence in the nation’s paper money. The consequences of this financial Ponzi scheme may soon be impossible to ignore.