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  • The Great American Credit Hangover: How Keynesian Fantasy Bankrupted Uncle Sam

The Great American Credit Hangover: How Keynesian Fantasy Bankrupted Uncle Sam

When Tax Cuts Meet Endless Spending and Central Planning, the Only Winner Is Debt—and the Fed’s Trying to Clean Up the Mess

Hold onto your wallets, folks! The United States just got downgraded from AAA to AA+, proving once again that Keynesian economics is the gift that keeps on taking—taking your money, your future, and your patience. The nation’s credit rating fell faster than government promises after a tax cut, all thanks to a toxic brew of runaway debt, reckless deficits, and politicians who treat budgets like a buffet line.

Let’s be clear: those 2017 tax cuts were supposed to unleash a capitalist miracle—more money in your pocket, more growth, more jobs. But what happened? Instead of letting the free market do its magic, Washington doubled down on Keynesian interventionism: spending like there’s no tomorrow, printing money like it’s monopoly cash, and hoping inflation doesn’t notice. The result? A $36 trillion debt mountain and deficits that make Keynesian “stimulus” look like a sugar rush gone wrong.

Here’s the Austrian truth bomb: real economic growth doesn’t come from government handouts or artificial demand created by deficit spending. It comes from the free market, where businesses succeed or fail on merit—not because Uncle Sam props them up with your tax dollars. The Keynesian fantasy that bureaucrats can “fine-tune” the economy is just that—a fantasy. History shows that their “solutions” only delay the inevitable reckoning, creating malinvestments and bubbles that burst spectacularly.

And what about the Federal Reserve? The Keynesians love to blame the Fed for “working against the people,” but the Austrians know better. The Fed’s job is to clean up the mess left by endless money printing and reckless fiscal policies. By raising interest rates, the Fed tries to curb inflation—something Keynesians dismiss as “just a little price increase” while your savings evaporate. Austrians argue for sound money—gold, or even Bitcoin—because fiat currency manipulated by central planners is a recipe for disaster.

So no, this downgrade isn’t a conspiracy; it’s a market reality check. The US is living beyond its means, propped up by Keynesian myths and political theater. If we want to avoid a full-blown economic collapse, it’s time to embrace Austrian principles: less government, sound money, and letting the market do what it does best—self-correct.

Enjoyed this dose of reality with a side of satire? Don’t be selfish—subscribe to Canamericanews.com and share this with your family and friends. Because in a world drowning in Keynesian nonsense, a little Austrian truth is the best antidote.