$38 trillion money magic

Title: The $38 Trillion Mirage: How "Money Magic" Could Erase Your Savings

Author: Digvijay Mourya

Date: October 28, 2025

A number just crossed our national dashboard that should freeze every American in their tracks: $38 Trillion. That’s the U.S. national debt, a figure so vast it feels abstract, a distant concern for economists and politicians. We’re told not to worry. "We owe it to ourselves," some say. "It's manageable," claim others.

But what if the plan to manage this crushing debt isn't about fiscal responsibility at all? What if the strategy involves a form of financial sorcery that directly targets the value of the dollar in your wallet and the savings in your bank account?

The terrifying truth is that traditional solutions—deep spending cuts or significant tax hikes—are now seen as politically untenable. So, the path of least resistance is being laid, and it runs straight through the Federal Reserve's money printer. This process is called debt monetization.

In simple terms: The Treasury needs to pay its bills and service its debt. Instead of finding the money through real economic growth or tough choices, it sells bonds. But who buys them? Increasingly, the Federal Reserve does—by creating new digital dollars out of thin air to purchase them. The government gets its cash, the debt is "held" by another part of the government, and the cycle continues. It’s borrowing without an obvious immediate consequence. A free lunch.

But as any student of history knows, there is no free lunch. The consequence is inflation. Not the transient kind we blame on supply chains, but a sustained, corrosive devaluation of currency. When you dramatically increase the money supply without a corresponding increase in goods and services, you dilute the value of every existing dollar. Your paycheck, your retirement fund, your life's savings—they all quietly lose purchasing power. This is a stealth tax, the most insidious kind, paid not to the IRS but to the relentless engine of monetary devaluation.

The accelerator on this engine is interest. The interest on our national debt is now the fastest-growing line item in the entire federal budget, outpacing defense and Medicare. As rates rise, the cost to service the debt explodes, forcing more borrowing just to pay interest—a classic debt spiral. To escape this spiral, the temptation to monetize becomes irresistible.

This isn't just doomsday speculation; it’s being dressed up in academic theory. Modern Monetary Theory (MMT) provides the intellectual cover. It argues a country like the U.S., which borrows in its own currency, can never truly go bankrupt because it can always create more of that currency. Proponents see this as a tool for achieving public policy goals. Critics, myself included, see it as a blueprint for debasement, divorcing government spending from any real-world constraint.

So, how does a government enact this while maintaining an illusion of stability? Enter the concept of the "great repricing."

To offset the perception of a weakening dollar balance sheet, the state could orchestrate a massive revaluation of assets like gold or even Bitcoin. By changing accounting rules or embracing them as "strategic assets," their dollar value could be artificially inflated on official ledgers. Suddenly, the nation's balance sheet looks stronger—not through productivity, but through ledger-demain. This could coincide with a global shift as BRICS nations and others actively seek to dethrone the dollar, fleeing U.S. Treasuries and building alternative trade systems. The dollar's dominance, long our greatest financial shield, is cracking.

The endgame is a reset. A "great repricing" of everything. The true value of the dollar—the trust it represents—is recalibrated downward on the global stage. Foreign holders are impacted, but the real victim is the American saver, the worker on a fixed income, anyone who trusted that a dollar saved would be a dollar kept.

This is the core argument we must confront: The unsustainable debt will not be paid in today's dollars of equivalent value. It will be "paid" through inflation and a redefinition of value itself, eroding the real burden of the debt at the direct expense of your economic security.

The $38 trillion isn't just a number. It is a harbinger of a profound shift in how our government values its promises and our prosperity. To ignore it is to believe in magic. And in economics, when the government plays magician, the people are often the ones disappearing—along with the value of everything they've worked for.

Stay Vigilant. Stay Informed.

— Digvijay Mourya