At the close of business on Monday March 1st, just a few days ago, the US national debt crossed $28 trillion for the first time in history.
To the penny, in fact, the national debt hit $28,004,376,276,999.35.
And bear in mind that figure doesn’t include the $1.9 trillion in ‘Covid stimulus’ that Uncle Sam is about to pass, let alone all the other deficit spending that they were already expecting for this current fiscal year.
So you can already see how the debt will quickly rocket past $30 trillion in no time at all.
It’s noteworthy that it took the United States more than two centuries to accumulate its first trillion dollars in debt– a milestone first reached on October 22, 1981.
In those two centuries (74,984 days, to be exact), the US fought two world wars, battled the Spanish Flu pandemic, dealt with the Great Depression, waged Cold War against the Soviet Union, fought the Civil War against itself, put a man on the moon, etc. before breaching $1 trillion in debt.
This most recent trillion of debt took a mere 152 days to accumulate.
Think about that: nearly 75,000 days for the first trillion, 152 days for the last trillion.
Even more startling, it was only September 2017 that the national debt first crossed the $20 trillion milestone.
So when the debt undoubtedly hits $30 trillion over the next few months, that means it will have grown $10 trillion in less than four years.
And there is absolutely no end in sight. The Treasury Department and the Federal Reserve are both in lockstep fanaticism: no amount of debt is too much, no amount of money printing is too much.
They find it perfectly logical for the government to restrain large portions of the economy and provide financial incentives for people to be economically unproductive, but then make up the difference by printing money and going into debt.
They have zero regard for the long-term financial consequences of their decisions, let alone the social and psychological impacts.
If you agree with them, that the United States and other western nations can continue to rack up infinite quantities of debt and expand the money supply with wanton abandon, and that there will never be any consequences forever and ever until the end of time, then I encourage you to do nothing.
But for rational, thinking people, there are now 28 trillion reasons to have a Plan B.
Remember, the entire purpose behind a Plan B is to put yourself in a position of strength regardless of what happens (or doesn’t happen) next.
For example, there is no downside to taking completely legitimate steps to legally reduce your taxes. Or to setup a more robust structure so you can set aside more money for retirement.
These are both great Plan B tools. They put you in a position of strength regardless of what happens, or doesn’t happen, next.
Another one is ensuring that, no matter what, you will always have another place to go– some other country where you have the full legal rights to live, work, invest, and bring your family.
One way to do that which we talk about a lot is second citizenship.
A second citizenship can be obtained in a number of ways– for example, if you have parents or grandparents from certain countries like Ireland, Poland, or Italy.
Or you can acquire citizenship from some countries (like St. Lucia or Dominica) by making a financial investment or official donation in that country.
And you can also obtain citizenship by first obtaining legal residency and going through a formal naturalization process.
Citizenship is great, because it comes with a passport— an extra travel document which can open doors all around the world, from visa-free travel to helping you open financial accounts overseas.
Plus, citizenship typically passes on to children and grandchildren, which means the work you do now to obtain a second passport can benefit generations to come.
But just one step down from citizenship is obtaining a second residency; this is where you go through the formal process of obtaining legal residency in a foreign country.
In Panama, for example, most people can easily become residents by setting up a corporation— even a dormant one— and depositing about $10,000 in a local bank account, though the ‘Friendly Nations Visa’.
Other countries, like Barbados or Bermuda, are currently offering one year residency, with the option to renew, to qualifying digital nomads or remote workers.
Mexico is another great option because legal residency is relatively easy and inexpensive to obtain. And there are so many ways to do so.
For example, I’ve learned recently that, for anyone who gives birth to a child in Mexico, the baby automatically becomes a Mexican citizen.
But the parents instantly become lifelong permanent residents of Mexico… with the ability to become citizens through naturalization in just two years.
What’s even more interesting is that extended family (like the baby’s grandparents) are eligible to become permanent residents of Mexico as well.
It’s an interesting approach to consider if you’re thinking about having kids.
Of course, Mexico might not be the right option for you– but there are countless others. Both Brazil and Chile, for example, also grant citizenship to any children born on their soil. Dozens of other countries do too.
Or if you’re retired and no longer in your child bearing years, you could quickly obtain permanent residency in Mexico as a retiree. Or you could become a legal resident of a number of European countries by purchasing qualifying real estate through their ‘Golden Visa’ programs.
And that’s the great thing about a Plan B: no matter what your personal circumstances, there’s literally a whole world of options that you can customize for yourself.