What’s in This Week’s Issue…

Good morning. When politicians talk about America's $37 trillion debt, they frame it as a distant problem for future generations.

But here's what they don't tell you: this debt crisis isn't coming someday. It's already reshaping who gets rich and who gets crushed, right now.

Because while most Americans are drowning in credit card debt and student loans, a small group of people are using the exact same economic forces to build generational wealth.

The difference isn't luck or connections. It's understanding which side of the debt equation puts you in control.

So this week…

• 🏆 The Big Play: How America's debt crisis creates two different realities

• 💪 The Power Move: The debt strategy that separates wealth builders from wealth destroyers

• 💵 Follow the Money: Why this private military company’s founder is sending fighters to Haiti

-GEN

🏆 The Big Play

The biggest money power story of the week.

How to Survive and Profit When the Debt Bubble Pops

America's national debt just hit $37 trillion. That's $280,000 per household, growing by $5 billion every single day.

But this isn't just a government problem. It's the foundation of a system that's creating two completely different economic realities for Americans.

On one side: people using debt as a tool to multiply wealth, buy appreciating assets, and build leverage that compounds over time.

On the other side: people trapped by debt that funds consumption, carries crushing interest rates, and transfers their wealth to someone else.

And to understand why, you need to see how debt actually works in practice.

1. The Great Divide: Asset-Class Debt vs. Non-Asset Debt

Not all debt is created equal, and understanding this difference is the key to surviving what's coming:

• Asset-class debt is money borrowed to buy things that can make you money: real estate, businesses, and income-producing investments.

• For example, when you take out a mortgage to buy rental property, that's asset-class debt. The property generates rent to pay the loan, and you own an appreciating asset.

• Non-asset debt is money borrowed for consumption: credit cards, car loans, student loans that don't increase earning power.

• This debt creates monthly payments with nothing valuable left behind.

Now, here's the math behind it:

• American households now carry $18.4 trillion in total debt. But 70% of that (~$12.9 trillion) is mortgages, which at least represent ownership of real estate.

• The problem is the other 30%: $1.63 trillion in student loans, $1.64 trillion in auto loans, and $1.18 trillion in credit card debt.

• That credit card debt is the killer. At an average 20% interest rate, a family carrying $10,000 in credit card debt pays $2,000 per year just in interest.

Meanwhile, wealthy investors are doing the opposite. They're borrowing at 3-7% to buy assets that appreciate at 7-10% annually. Their debt pays for itself, and they keep the difference.

This divide becomes critical when you realize what happens next: economic shocks don't affect both sides equally.

2. What Happens When the Debt Bubble Pops

History shows us exactly what happens when debt bubbles collapse. We saw it in 2008, and we'll see it again when America's debt crisis hits:

• For people trapped in non-asset debt, the collapse is devastating: Job losses, credit card defaults, car repossessions, and bankruptcies.

• But for people positioned in asset-class debt, the collapse becomes an opportunity.

• When housing prices crashed 33% in 2008, cash-rich investors like Warren Buffett and private equity firms bought thousands of properties at fire-sale prices.

• They used cheap debt to acquire assets that desperate sellers had to dump.

This pattern repeats in every crisis: assets get transferred from the overleveraged to the underleveraged.

From those who used debt for consumption to those who used debt for investment.

The question isn't whether this transfer will happen. The question is which side you'll be on when it does.

3. How You Can Position Yourself

The smart money isn't waiting for the crisis to hit. They're positioning now, while most people are still pretending everything is fine:

• First, they're eliminating non-asset debt aggressively.

• Second, they're building cash reserves.

• Third, they're acquiring hard assets before the crisis hits.

Most importantly, they're learning to think like investors, not consumers.

Every financial decision gets filtered through one question: "Does this make me money, or does this cost me money?"

The debt crisis isn't a distant threat. It's the backdrop against which the next great wealth transfer will happen.

Your position when it hits will determine whether you're buying assets from desperate sellers, or whether you're the desperate seller.

But understanding the mechanics is only half the battle. The other half is understanding the mindset that makes it all work.

💪 The Power Moves

Playbook for understanding the game of power.

The Debt Strategy That Separates Wealth Builders From Wealth Destroyers

The national debt crisis reveals something most people miss:

debt isn't inherently good or bad. It's simply a tool that amplifies whatever financial position you're already in.

So, if you're using debt to buy assets that generate income and appreciate over time, debt becomes leverage that multiplies your wealth.

And if you're using debt to fund consumption and lifestyle expenses, debt will become a weight that drags you down.

But in a debt-driven economy like ours, staying completely debt-free isn't actually the optimal strategy.

The optimal strategy is to use the right kind of debt while avoiding the wrong kind.

The Takeaway:

The coming debt crisis will be the greatest wealth transfer event of our lifetime.

Your financial future won't be determined by how much money you make.

So, the choice is yours. But the window to make it is closing fast.

💵 Following the Money

Three of the wildest financial and corruption stories from around the world.

#1 - Blackwater founder Erik Prince’s plan to fight gangs, collect taxes in Haiti

#2 - Noem orders border wall to be painted black to make it hotter, harder to climb

#3 - FDA warns frozen shrimp from Walmart could be radioactive in a recall

✨ Poll time!

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