The Problem With Money Today (Investing 101 for the Clueless but Curious, Series: 1 of 11)

The U.S. just crossed $37 trillion dollars in national debt. That number sounds so big it feels untouchable, like it belongs only to politicians and economists. But here is the truth: it touches you directly.

Think of it this way. Imagine someone paying off one credit card by opening another, then a few years later doing it again. Debt stacked on debt with no real plan to stop. That is exactly what the government is doing. And every time it happens, it is eating away at your value and the hard work you are putting in today.

Debt and Deficits: What They Really Mean

These are terms you hear on the news all the time, but here is what they actually mean for your life.

National Debt is the government’s giant credit card balance. It is the total amount the U.S. has borrowed and still owes.

Deficit is the shortfall each year. If you earn sixty thousand but spend seventy thousand, the ten thousand difference is your deficit. The U.S. has been running deficits almost every year for decades.

When deficits pile up, the debt grows. To cover it, the government issues more bonds or prints more money. And when more money floods the system, every dollar already in your pocket becomes weaker.

Inflation and Purchasing Power

This is where it gets personal.

Inflation is the steady rise in prices. It is why the same grocery trip costs more today than it did five years ago.

Purchasing Power is how much your money can buy. When prices rise, your money buys less.

Over the last five years, the dollar has lost about 25% of its purchasing power. If you had ten thousand dollars in 2020, today it only buys what about eight thousand dollars would have bought then. The number on your bank account statement has not changed, but its real value has.

That is money debasement in action.

Why This Matters to You

People often hear about trillions in debt and think it is a government problem, not theirs. But it is your problem.

Higher prices show up in everyday life. Debt drives inflation. You pay more at the pump, more at the store, and more for housing.

Weaker savings show up in your bank account. Your cash does not stretch as far. What felt like a cushion five years ago feels thin today.

Future taxes are another consequence. Rising debt means more of your income will eventually be taken to service it.

The national debt is not abstract. It shows up in the bills you pay every single day.

The Takeaway

You do not invest just to get rich. You invest to protect yourself. What most people do not realize is that it is not only cash that loses value. Even some of the “safe” investments that have been sold as good enough for decades often fail to keep up with the pace of money debasement.

A 4-5% annual return might have been fine in the past. Today, it can leave you falling behind. If inflation is running at three percent or more, and the dollar has lost 25% of its value in just five years, then a small positive return is not growth. It is a slow loss.

Investing is not optional anymore. It is the only way to keep the hard work you are putting in today from slipping away tomorrow.

When the government keeps stacking credit cards, you cannot stop it. But you can stop being the one left holding weaker dollars and underperforming investments.

Investing 101 for the Clueless but Curious

1. The Problem With Money Today (This Article)

2. How to Outrun Debasement

3. Understanding the Basics of Money

4. The Power of Compounding

5. Stock Market 101

6. Bonds, ETFs, and Index Funds

7. The Case for Alternative Assets

8. How to Research a Stock

9. Conviction Investing vs Diversification

10. Building Your First Portfolio

11. The Future of Investing