The US government’s potential $1 trillion deficit, solely for managing interest spending, coupled with the lack of a balanced budget, is an unsustainable and alarming situation. This escalating debt will require refinancing at higher rates, further exacerbating the problem. The actions of Japan and China, selling treasuries and manipulating their interest rates, only push US treasury rates higher. The Federal Reserve’s Chair Powell is losing credibility in the market. Moreover, real estate lending rates are nearing 8% in the US, while wages remain stagnant. The imminent collapse of the housing market and the mounting toxic loans held by banks indicate a grim future. With real estate values plummeting, a soft landing is unlikely as defaults become inevitable.