America’s Debt Spiral Accelerates: $840 Billion Deficit in Just 4 Months, Interest Costs Hit $1.2 Trillion

EDITOR'S NOTES

Buckle up, folks—this is the part where the empire starts eating itself alive. The U.S. government just posted a record $840 billion deficit in the first four months of fiscal 2025. That’s right, nearly a trillion in red ink, and we’re not even halfway through the year. Meanwhile, the interest on the national debt has smashed through $1.2 trillion annually. That means Uncle Sam is now paying more to service its debt than it spends on the entire military. But don’t worry, the bureaucrats in D.C. are on the case—just kidding, they’re too busy writing blank checks to Ukraine, Wall Street, and every bloated agency you’ve never heard of.

Forget cutting spending. The only thing left is full-blown monetary debasement—they’re going to print their way out of this, and you and I will pay for it with the destruction of the dollar. Let’s break down the horror show in progress.

Derek Wolfe Feb 14, 25

The Numbers Don’t Lie—But Washington Does

January was a bloodbath for the Treasury. The government managed to spend $642 billion in a single month—a staggering 29% increase from last January. That alone should set off alarm bells, but here’s the kicker: it only pulled in $513 billion in tax revenue, up a measly 7.5% from last year.

Translation? We’re spending money at four times the rate we’re bringing it in.

That led to a $129 billion deficit for the month, marking the second-worst January in history (only 2021, in the aftermath of the COVID money-printing frenzy, was worse). Stack that on top of the previous months, and the government has already run up $840 billion in deficits this fiscal year alone—the worst start to a year ever.

Interest on the Debt: The Monster They Can’t Kill

And here’s where it gets truly apocalyptic. While politicians love to pretend they can “cut spending” to solve this crisis, the truth is the majority of the budget is already locked in. You can slash a few billion here and there, but nothing stops the relentless march of interest on the national debt.

That figure? A record $1.167 trillion in the last 12 months.

Let that sink in. In just four months, the U.S. government has blown $392 billion just to keep the lights on at the debt factory. That’s more than we spend on Medicare. More than we spend on Social Security. More than we spend on anything—except maybe war.

Where This Ends—And It Won’t Be Pretty

No amount of creative accounting or political theater is going to change the trajectory. The U.S. is now stuck in a classic Minsky Moment, where debt is expanding so fast that the entire system is spiraling out of control. The only way out?

Default – Politically impossible.
Massive tax hikes – They’ll try, but it won’t be enough.
Hyperinflation and currency destruction – Bingo.

The Federal Reserve will print the difference, inflating away the debt while your savings, wages, and retirement accounts get obliterated. That’s the game plan. That’s always been the game plan.

The only question is: Are you prepared?

Protect Yourself Before It’s Too Late

If you’re still trusting the system, you’re setting yourself up to be a casualty in the financial war that’s coming. You need real assets, real financial sovereignty, and a plan to get your money out of the government’s crosshairs.

Start by downloading Seven Steps to Protect Yourself from Bank Failure by Bill Brocius. It’s free, it’s essential, and it’ll show you exactly what to do before the next crisis wipes out what’s left of your purchasing power.

Download it now.

The clock is ticking.