America BANKRUPT — Ron Paul Called It

Former Congressman Ron Paul’s decades-long warnings about Federal Reserve-fueled debt, endless wars, and economic collapse are now materializing as the U.S. careens toward bankruptcy with $38 trillion in federal debt and gold prices soaring to $5,000 per ounce.

Story Snapshot

Ron Paul declares U.S. “totally bankrupt morally and financially” as federal debt hits $38 trillion with no policy reversal in sight
Gold prices surge to $5,000 per ounce, signaling widespread market distrust in the dollar and fiat currency system
Paul’s predictions from 1982 onward—linking the Federal Reserve to inflation, war financing, and artificial economic bubbles—are proving accurate
Low-income Americans bear the brunt of inflation’s “hidden tax” as 50% of non-income-tax payers face rising food and energy costs

Paul’s Four-Decade Warning Proves Prescient

Ron Paul issued his first formal debt warning in 1982 as part of the U.S. Gold Commission minority report alongside Lewis Lehrman, flagging unsustainable debt foundations that threatened the nation’s fiscal integrity. His 2009 book “End the Fed” expanded this critique, arguing the Federal Reserve operates as an unconstitutional banking cartel that enables deficit spending, currency debasement, and war financing without direct taxation. Today, with debt climbing from $36 trillion to $38 trillion and gold hitting record highs, Paul’s framework linking central banking to economic instability resonates with Americans who watched spending spiral under past administrations.

Federal Reserve Enables Fiscal Recklessness

The Federal Reserve’s role as enabler of government overreach stands at the center of Paul’s analysis, a concern that aligns with constitutional conservatives’ skepticism of centralized power. Paul describes the Fed as an “engine of inflation” that monetizes debt, distorts interest rates, and conceals the true costs of welfare programs and foreign interventions through currency manipulation. This symbiotic Fed-Treasury relationship allows Congress to sustain massive deficits exceeding 6% of GDP through 2034 projections without facing immediate taxpayer revolt. The system punishes savers and working families through inflation—what Paul calls a “sinister tax” hitting hardest those 50% of Americans who pay no income tax but absorb rising prices on necessities.

Debt Crisis Threatens Dollar Dominance

America’s $38 trillion debt burden now threatens the dollar’s global reserve currency status, a reality underscored by gold’s climb to $5,000 per ounce as investors flee fiat exposure. Paul warns the “biggest bubble of all history” must pop through debt liquidation within one to two years, triggering interest rate spikes and market havoc if the Fed curtails its debt purchases. Foreign policy overreach compounds the crisis, as interventionist wars funded by printed money erode international credibility and domestic prosperity simultaneously. This dual assault on American strength—fiscal recklessness at home and endless entanglements abroad—represents precisely the trajectory Paul cautioned against for decades while establishment voices dismissed sound money principles.

Economic Collapse Looms Without Course Correction

Paul’s recent interviews characterize current policy as hitting a “stone wall,” with the Fed’s strategy of slow inflation to erode debt reaching its practical limits amid mounting chaos risks. Short-term consequences include potential hyperinflation, currency devaluation, and job losses as artificial booms collapse into inevitable busts. Long-term implications extend to loss of reserve currency status and complete monetary system failure before gold reaches speculative extremes like $20,000 per ounce. Low-income communities face disproportionate harm as inflation functions as a regressive tax on food and energy, widening inequality while banking cartels strengthen their grip through Fed bailouts. Political instability may follow economic turmoil, with Paul warning that chaos prompts demands for authoritarian controls that erode liberty—the ultimate threat to constitutional principles conservatives hold dear.

Ron Paul’s Warnings Have Come True: Rising Debt, Endless War & Economic Collapse https://t.co/Y5uB3dkeO1

— Dave Marks (@davevademecum1) February 12, 2026

The convergence of record debt, faltering currency confidence, and institutional enablers like the Federal Reserve validates Paul’s libertarian critique that limited government and sound money principles offer the only sustainable path forward. President Trump’s administration inherits this precarious landscape shaped by years of monetary manipulation and deficit spending that Paul spent his career opposing. Americans frustrated with prior administrations’ fiscal irresponsibility now confront the consequences Paul predicted—a reckoning that demands return to constitutional restraints, rejection of endless foreign wars, and honest accounting of government’s true costs rather than hidden inflation taxes on working families.