We tell our kids over and over again that a “higher education” is the key to getting a good job and living the American Dream.  They have been told not to worry about how much it costs and that there is plenty of financial aid (mostly made up of loans) available.  Now our economy is facing the biggest student loan debt bubble in the history of the world, and when our new college graduates enter the “real world” they are finding out that the good jobs they were promised are very few and far between.

The system relies on the fact that most of us are going to believe that a college education is the key to a good future and that there is plenty of “financial aid” out there for everyone that wants to go to college.

Unfortunately, high school students are never told that not even bankruptcy can get you out of student loan debt.  It will stay with you forever until you finally pay it off.

Today, each new crop of optimistic college graduates quickly discovers that there are simply not nearly enough jobs for all of them.  Thousands upon thousands of them end up waiting tables or stocking the shelves at retail stores.  Many of them end up deeply bitter as they find themselves barely able to survive and yet saddled with tens of thousands of dollars in student loan debt that nobody ever warned them about.

Sadly, the quality of the education that most of these college students is receiving is a complete and total joke.

Take it from someone that has graduated from a couple of very highly respected institutions.  I have an undergraduate degree, a law degree and another degree on top of that, so I know what I am talking about.  Higher education in America has become so dumbed-down that the family dog could literally pass most college courses.

It is an absolute joke.  The vast majority of college students in America spend two to four hours a day in the classroom and maybe an hour or two outside the classroom studying.  The remainder of the time, these “students” are out drinking beer, partying, chasing after sex partners, going to sporting events, playing video games, hanging out with friends, chatting on Facebook or getting into trouble.  It has been said that college is the most fun that most people will ever have in their entire lives, and that is no exaggeration.  It is basically one huge party.

Of the little “education” that actually does go on, much of it is so saturated with leftist propaganda that it makes the whole process virtually worthless.  Most parents would be absolutely shocked if they could actually see the kind of indoctrination that goes on inside U.S. college classrooms today.

A college education can be worth it for those in fields that are highly technical or highly specialized, but for nearly everyone else it is just one giant money-making scam.

Oh, but you parents please keep breaking your backs to put money into the college funds of your children so that they can be spoon-fed leftist propaganda all day and party like wild animals all night for four years.

It really is a huge scam.  I was there.  I saw it with my own eyes.

But if you will not believe me, perhaps you will believe some cold, hard statistics.  The following are 14 shocking facts about the student loan debt bubble and the great college education scam…

1. One out of every four Americans under the age of 40 has outstanding student loan debt.
2. Americans now owe 1.773 trillion dollars on their student loans, which is more than the total amount that Americans owe on their credit cards.
3. The average federal student loan debt balance has now risen to $38,375.
4. 4.86 percent of all federal student loan dollars were in default as of the fourth quarter of 2024.
5. A typical high school student spends about 30 hours in the classroom each week, but a typical college student spends between 12 and 16 hours in the classroom each week.
6. One study found that 35 percent of U.S. college students spend 5 hours or less studying outside of the classroom each week.
7. That same study found that 50 percent of U.S. college students have never taken a class that required them to write more than 20 pages, and 32 percent of U.S. college students have never taken a class that required them to read more than 40 pages in a week.
8. Only 49 percent of full-time college students receive a bachelor’s degree within four years.
9. In May 2024, the unemployment rate for bachelor’s degree recipients between the ages of 20 to 29 was over 12 percent.
10. The median starting salary for a college graduate is approximately $52,000 a year.
11. The average starting salary for an electrician is approximately $54,000 a year.
12. Today, a whopping 42.7 million Americans have outstanding student loan debt.
13. Just 29 percent of all young college graduates in the U.S. that have outstanding student loans say that they are living comfortably.
14. #Nearly a third of all college graduates end up moving back home with their parents once their educations have been completed.

What in the world has happened to our system of higher education?

At this stage, it is a complete and utter disaster. Much of the “real learning” that is taking place on college campuses actually occurs in graduate programs. Sadly, many of these graduate programs are now dominated by foreigners.

In fact, it has been estimated that about half of all the graduate science students enrolled at colleges and universities in the United States are now foreigners. Something is very, very wrong.

But should we be surprised that the quality of education at our colleges and universities has gone down so much when the quality of education at every level leading up to college has also been declining?

In some areas of the country, large numbers of students that can barely read are being allowed to graduate from high school.

A population that does not read is much easier for the elite to control.  According to a survey that was conducted in 2023, 46 percent of Americans had not even read a single book within the past year.

If you want to be an educated person, get in the habit of reading books.  If you don’t know where to get started, I would recommend checking out my latest offering.

Our society spends more on education than any other society in the history of the world has. But our population is certainly not getting any smarter.

Our system of higher education is all about making as much money as possible, and countless lives are being wrecked in the process.

Michael’s new book entitled “Why” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

The federal government reported net costs of $7.4 trillion in fiscal year 2024, but it couldn’t fully account for its spending. The U.S. Government Accountability Office, which is Congress’s research arm, said that the federal government must address “serious deficiencies” in federal financial management and correct course on its “unsustainable” long-term fiscal path.

U.S. Comptroller General Gene Dodaro, head of the GAO, said many of the challenges are a result of financial management problems within the U.S. Department of Defense. The Pentagon previously said it will be able to accurately account for its spending by 2027.

“The federal government has again come up short in managing its finances and achieving a clean audit due to challenges in adequately supporting its costs, revenues, assets and liabilities,” Dodaro said in a statement. “These serious financial management weaknesses and unsustainable long term fiscal path further underscore the need for urgent attention, accountability, and transparency.”

The report noted three major problem areas: “serious financial management problems” at the Department of Defense; the federal government’s inability to adequately account for intragovernmental activity and balances between federal entities, and “weaknesses in the federal government’s process for preparing the consolidated financial statements.”

Dodaro said the federal government has made progress, but still has work to do.

“To ensure our readiness as a nation to confront both domestic and international challenges, it’s imperative for Congress and the executive branch to come together and craft a plan for long-term fiscal sustainability,” he said.

Congress has run a deficit every year since 2001. In the past 50 years, the federal government has ended with a fiscal year-end budget surplus four times, most recently in 2001.

President-elect Donald Trump has promised to cut “hundreds of billions” in federal spending in 2025 through the reconciliation process. Trump’s hand-picked leaders for the newly created Department of Government Efficiency have also promised to cut spending. DOGE co-leader and Tesla boss Elon Musk initially suggested DOGE could cut $2 trillion in spending. Musk more recently said the group will aim for $2 trillion, but likely come up with half that amount.

There is hope. Between Republican control of both chambers of Congress and President Donald J. Trump reentering the Oval Office in three weeks, it’s not time to panic. But there needs to be real actions taken to not only raise the debt ceiling but to dramatically cut spending. Unfortunately, the latter may not be in the cards.

The United States is on a collision course with a potential default on its national debt, an event poised to significantly undermine its credit rating and unleash economic turmoil across global markets. This looming crisis is centered around the contentious issue of the debt ceiling, sparking widespread concern among investors, policymakers, and international allies.

The federal debt limit, due to be reinstated on January 1, 2025, sets the stage for a critical financial challenge. With the Treasury Department’s extraordinary measures expected to deplete by mid-2025, there’s an urgent call for Congressional action to either raise or suspend the ceiling to avoid default. Treasury Secretary Janet Yellen has highlighted the gravity of the situation, urging lawmakers to protect the full faith and credit of the United States.

A default would not only question the reliability of U.S. Treasuries, traditionally seen as the bedrock of international finance with zero credit risk, but also lead to a potential sell-off of U.S. securities. Such an event could increase borrowing costs globally and might even push the U.S. into a recession, affecting millions of jobs and household wealth.

This is the path through which de-dollarization can ascend. BRICS nations have diligently been working to usurp the U.S. Dollar with their own currencies. Meanwhile, non-BRICS nations who have relied on the U.S. Dollar are seeking cover. This is why alternative forms of value such as cryptocurrency and precious metals are becoming increasingly popular.

Historically, the U.S. has faced similar scenarios, like in 2011 when political brinkmanship led to a downgrade of the U.S. credit rating by Standard & Poor’s. Although the situation was resolved before reaching default, the mere threat caused economic ripples. The implications of a 2025 default could be far more severe, with Moody’s already signaling a negative outlook on U.S. debt amidst rising deficits and interest rates.

The global economy’s reliance on U.S. economic stability means that any default would have far-reaching effects. Countries with economies tied to the U.S. dollar could see their own financial systems destabilized, and the trust in U.S. financial instruments could wane, leading to a reevaluation of global investment and trade strategies.

In response, some experts advocate for structural reforms to manage U.S. debt more sustainably, while others emphasize the need for immediate, bipartisan action in Congress to avert the crisis. The situation underscores the delicate balance between fiscal policy, political will, and economic stability, highlighting the stakes involved not just for America but for the world’s financial landscape.

To those seeking to protect their life’s savings with physical precious metals, request a 2025 Wealth Protection Kit from Genesis Gold Group.

Article generated from corporate media reports.

This marks a $5 trillion increase since 2023 alone. Looking ahead, debt levels are projected to increase faster than previously expected as government policies fail to address debt risks amid aging populations and increasing healthcare costs. Going further, rising geopolitical tensions could lead to higher spending on defense, adding strain to government budgets.

This graphic, via Visual Capitalist’s Dorothy Neufeld, shows government debt by country in 2024, based on data from the IMF’s October 2024 World Economic Outlook.

Ranked: Government Debt by Country

As the world’s largest economy, the U.S. debt pile continues to balloon, accounting for 34.6% of the world’s total government debt.

Overall, net interest payments on the national debt soared to $892 billion in the 2024 fiscal year. By 2034, these costs are forecast to reach $1.7 trillion, with total net interest costs amounting to $12.9 trillion over the next decade. A rising mountain of debt and higher interest rates are among the primary factors driving up net interest costs.

Below, we show the gross government debt of 186 countries worldwide in 2024:

*The above table uses IMF data from October 2024, however, the most current up-to-date number for U.S. government debt is $36.1 trillion based on data from the U.S. Treasury for December 12, 2024.

China, ranking second globally, holds 16.1% of the world’s government debt.

Over the next five years, China’s debt to GDP ratio is projected to hit 111.1% of GDP, up from 90.1% in 2024. Going further, Chinese officials recently stated they are prepared to deploy stimulus measures to support the economy if Trump imposes sweeping tariffs on goods imported from China. As a result, China’s debt to GDP could rise even faster than current projections.

India, ranked seventh globally, has amassed $3.2 trillion in debt, an increase of 74% since 2019. However, thanks to its strong economic growth and fiscal policies that are increasing government revenues, debt as a percentage of GDP is projected to fall gradually from 83.1% in 2024 to 80.5% by 2028.

In Europe, the UK has amassed the most debt, about $3.65 trillion, equal to 101.8% of GDP. This is far higher than the regional average, standing at 77.4% of GDP in 2024. Europe has a lower debt to GDP than North America and the Asia-Pacific, but European budgets likely face increasing pressures looking ahead, due to sluggish economic growth, trade wars, and aging populations.

A Regional Outlook for Global Debt

Below, we show how government debt by region is projected to change over the next five years:

As we can see, average debt by country in North America is set to swell to 125% of GDP, the highest across global regions.

With governments increasingly using stimulus measures to boost the economy, it poses a greater threat to fiscal sustainability. In order to stabilize debts, the IMF stated that major spending cuts and tax hikes are needed over the next five to seven years.

Like North America, debt to GDP ratios are set to increase across Asia, Europe, and the Middle East.

Overall, world government debt is projected to exceed 100% of global output by 2029, driven by several large countries including the U.S., China, Brazil, and France, among others.

To learn more about this topic from a forward-looking perspective, check out this graphic on G7 government debt projections over the next five years.

If you are old enough, you can still remember a time when many middle class families would purchase a new vehicle every few years.

Sadly, today most of us are being forced to get as much mileage out of our rapidly aging vehicles as we possibly can.  As a result, the average age of the passenger vehicles traveling America’s roads has reached an all-time record high…

This should be the best of times for the people who help keep America’s cars running.

There have never been as many on the road—around 290 million light vehicles—and they have never been so old. One reason for that is good news: They are better made. Getting the odometer past 100,000 miles has gone from being noteworthy to normal. Thirty years ago the average passenger car was about 8.4 years old and today that is 13.6 years.

Even keeping our aging vehicles repaired has become exceedingly difficult.

These days, if the mechanic hands you a repair bill for less than a thousand dollars that is a reason to celebrate.

In the old days, you could get a really nice used vehicle for a thousand dollars.

Of course groceries have become insanely expensive as well.  Earlier today, I came across a USA Today article that discussed the fact that the average household in Miami spends 327 dollars at the grocery store per trip…

Many longtime Miamians say they’ve felt this way since the pandemic transformed much of their city. As New Yorkers and Californians faced lockdown orders and restrictions, many flocked to Florida, with the largest increase of New Yorkers moving to Miami where they could benefit from tax and mandate breaks while working remotely. But along with having the largest net population gain of any state in the country came exploding living and housing costs. Housing prices have risen almost 50%, according to the UBS Global Real Estate Bubble Index released last month.

Grocery prices shot up. (An average household spent about $327 per trip). So did electric bills. A carton of eggs last year cost $5.

327 dollars used to be a lot of money.

Now it will just buy you one cart of food.

I warned my readers that the economic conditions that we were witnessing in Venezuela would eventually come here, and now it has happened.

As I discussed a few days ago, core consumer prices have actually risen for 53 months in a row. Our cost of living crisis is out of control, and there is no end in sight.

As they struggle to pay their bills, many Americans are turning to credit cards for some relief. As a result, credit card debt balances have soared to record high levels…

The average American household credit card balance as of the third quarter of 2024 was about $10,757 after adjusting for inflation, according to a new study.

The personal-finance website WalletHub onFriday released its new Credit Card Debt Study, which found that consumers added $21 billion in debt during the third quarter of 2024.

Early results for the fourth quarter of the year show preliminary data for October at a new record high for credit card debt in the month, in absolute terms.

As credit card debt levels rose, it was inevitable that more Americans would start getting behind on their payments, and that is precisely what has happened…

Are you feeling financially stressed as 2024 comes to a close? You’re not alone, not even close. In fact, 7.8 million Americans have delayed payments on at least one of their credit accounts this year. That’s a million more than in 2023.

This is really bad news for the economy as a whole, because our economy is highly dependent on consumer spending.

You can’t get blood from a stone, and restaurants all over the country are learning the hard way that most consumers simply cannot afford to eat out as regularly as they once did…

Seafood giant Red Lobster, Italian chain Buca di Beppo, fish taco eatery Rubio’s Coastal Grill and the owner of burger and pizza chains BurgerFi and Anthony’s Coal Fired Pizza are among those that have sought to reorganize through bankruptcy this year. Hooters of America is also huddling with lenders and advisers amid revenue declines, Bloomberg reported.

Shares of Dine Brands Global Inc., the parent of Applebee’s and IHOP, are down about 30% year-to-date, while shares of Bloomin’ Brands Inc., which owns Outback Steakhouse, dropped to near 2020 lows last month after it reported a decline in US same-store sales.

Yes, a “restaurant apocalypse” has begun.

When I first started using that term, a lot of people thought that I was exaggerating.

But of course I was not exaggerating one bit.

There was a time when it seemed like just about anyone in this nation could achieve “the American Dream” if they just worked hard enough.

But now we have reached a point where only 31 percent of Americans believe that they have “made it” in life…

Despite being the land of opportunity, the American Dream remains frustratingly out of reach for most Americans, with a mere 31% believing they’ve financially “made it” in life.

Sadly, that figure is even lower for Baby Boomers…

However, the picture becomes less optimistic with age. Only 27% of baby boomers feel they’ve reached financial success, and among those who haven’t, just one-third believe they ever will. The survey found that Americans consider their path to financial success threatened by various external factors, including presidential elections (46%), interest rate changes (45%), and the job market (42%).

After working so hard for so many years, only 27 percent of Baby Boomers feel like they have “made it” in life.

Well, that is quite depressing.

Things could have turned out far differently.  Many of us ranted and raved for years that things would turn out this way, but most of the country did not want to listen.

Bad decisions lead to bad results.

Our leaders have been making comically bad decisions for decades, and thanks to them we now have a complete and utter nightmare on our hands.

Michael’s new book entitled “Why” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

The personal-finance website WalletHub on Friday released its new Credit Card Debt Study, which found that consumers added $21 billion in debt during the third quarter of 2024.

Early results for the fourth quarter of the year show preliminary data for October at a new record high for credit card debt in the month, in absolute terms.

WalletHub editor John Kiernan wrote, “Even though that third-quarter increase was 31% smaller than last year’s and total debt is just 3% above where it was last year after adjusting for inflation, we are still in fairly dangerous territory,” said Kiernan.

WalletHub writer & analyst Chip Lupo responded via email to follow up questions from The Center Square.

Those early Q4 results showing record high credit card debt for October are alarming-do we know what’s driving that at all?

“The record-high credit card debt in October 2024 reflects a 3% year-over-year increase after inflation adjustments, driven by rising interest rates, holiday spending and lingering economic pressures. While Q3 debt growth slowed compared to 2023, total debt remains high at $1.29 trillion, signaling potential challenges ahead for consumers,” said Lupo.

Has WalletHub done any analysis of how much credit card debt the average American puts on during the holidays?

“While we didn’t analyze this specifically, WalletHub found that holiday budgets this year range from just over $200 to more than $4,000, depending on factors such as income, existing debt, and cost of living,” said Lupo.

Any advice on balance transferring to avoid interest?

“Transferring your credit card balance to a low or 0% APR card can be a smart way to save money and pay down debt faster. When considering a balance transfer, focus on cards offering 0% introductory APRs with promotional periods up to 21 months. Such offers significantly reduce interest payments, provided you can pay off the transferred balance before the regular APR kicks in. Remember, most cards charge a balance transfer fee of about 3%, though some will waive this fee entirely. Calculating these costs upfront is crucial to ensure the move saves money,” said Lupo.

With holiday spending in full swing, many Americans are expected to add to credit card debt before the end of the year.

“Nearly half of Americans still have debt from the holidays from last year,” said Lupo. “The fact that people are still paying off debt from last holiday season makes you wonder if they are going to fall into that trap again or are they cutting back because of last year’s debt?”

Sixty-eight percent of WalletHub respondents said Santa will be less generous this year because of inflation. And about a third said they’ll spend less on holiday shopping this year compared with 2023.

Treasury International Capital (TIC) data published on Nov. 18 show foreign investors purchased $169 billion in U.S. government bonds in September, totaling a record $8.673 trillion.

Foreign investors bought a mix of short- and long-term bonds. Treasury bills—maturities between 30 days and 1 year—continue to appeal to bond investors, providing yields as high as 4.6 percent.

Japan and China, the two largest holders of U.S. debt, trimmed their holdings in September.

Tokyo erased about $6 billion, lowering its portfolio of Treasury securities to $1.123 trillion. Beijing reduced its holdings of U.S. government bonds by more than $2 billion to $772 billion.

While China has steadily decreased its exposure to Treasurys over the past several years, its holdings have changed little since September 2023.

Belgium ($41 billion), the United Kingdom ($21 billion), France ($16 billion), and Singapore ($9 billion) were the leading buyers, TIC figures show.

Hong Kong was the only other foreign market to register a nearly $3 billion decline.

The trend of foreign investment into U.S. Treasury securities has been unsurprising, given their vast demand at auctions over the last several months.

During the $42 billion auction of 10-year bonds on Nov. 5, indirect bidders—commonly foreign entities—purchased 62 percent of the supply. Direct bidders—domestic investors—bought less than a quarter of the issued bonds.

Foreign investors also acquired nearly two-thirds of the supply of 30-year bonds at the $25 billion auction on Nov. 6.

The yields in the United States bond market are some of the highest in the world. The U.S. Treasury market is also one of the largest and most liquid corners of international financial markets. Investors are hungry for yields with central banks unwinding their restrictive policy stances and launching a new easing cycle by cutting interest rates.

Despite the Federal Reserve following through on its rate-cut endeavors, Treasury securities have remained elevated. The benchmark 10-year Treasury yield, for example, has climbed nearly 80 basis points since the Fed lowered the federal funds rate for the first time in more than four years in September. As of Nov. 19, the 10-year bond is hovering at about 4.4 percent.

Treasury yield increases have also helped support the U.S. dollar.

The U.S. Dollar Index (DXY), a gauge of the greenback against a weighted basket of currencies, has surged nearly 2 percent over the past month, lifting its year-to-date gain to close to 5 percent. It also rallied to a one-year high of above 107.00 on Nov. 14.

The international reserve currency has rocketed on the futures market recently, shifting Fed policy expectations, with investors penciling only three quarter-point rate cuts by the end of next year, according to the CME FedWatch Tool.

“The potential for fewer cuts from the Fed and a more dovish ECB [European Central Bank] has been a big factor behind the dollar’s advance over the last few months,” said Adam Turnquist, the chief technical strategist at LPL Financial, in a note emailed to The Epoch Times.

Charles Seville, the senior director at Fitch Economics, believes the ECB will reduce interest rates faster amid weakening economic data.

“Although unemployment has yet to rise, labour markets are cooling and wage pressures subsiding,” Seville said in a research note last month.

“Past monetary tightening is clearly still affecting the economy. The ECB appears concerned that eurozone economic growth will undershoot its September forecasts, putting more downside pressure on inflation when it’s already close to target.”

The rate-setting Federal Open Market Committee will hold its next two-day policy meeting on Dec. 17 and 18.

The U.S. dollar’s future direction will also depend on Wall Street’s confidence that President-elect Donald Trump will extend the expiring Tax Cuts and Jobs Act and enact his sweeping tariff plans.

While a strengthening dollar benefits consumers and importers, it can also harm domestic companies that export their goods and services to foreign markets. The president-elect and his team have previously questioned the long-standing strong-dollar policy as they try to resurrect U.S. manufacturing.

“We have a big currency problem,” Trump told Bloomberg Businessweek this past summer, calling it a “tremendous burden” on U.S. businesses.

“Nobody wants to buy our product because it’s too expensive.”

However, Trump also pledged to protect the dollar hegemony and its chief reserve currency status, telling an audience of business leaders at the Economic Club of Chicago in October that the country could transition to “third-world status” if it the king dollar were dethroned.