America's Most Dangerous Blind Spot

Why Having a 'Plan B' Isn't Optional Anymore

I saw something recently that perfectly captures one of the most dangerous attitudes plaguing America today.

It came from Arnold Schwarzenegger—the Terminator, former governor of California, and the musclebound Austrian who went from action hero to eco-friendly Republican (because, well... California).

During a recent late-night TV appearance, Arnold acknowledged America's problems but told viewers to "relax" because when he arrived in 1968, America "was a disaster."

Here's what he said:

I came over here in 1968, where it was a disaster. I mean—even the most fantastic country—but I came over here in 1968, Martin Luther King was assassinated. Bobby Kennedy was assassinated. There were the riots left and right because of the Vietnam War, there were the protests, then there was the attack on the Democratic convention in Chicago, and then after that there was Watergate. The thing went on and on and on. People said, “What is going on in America?” And we got out of the mess. So America will always get out of this mess.

Now, I’m a strong believer in American exceptionalism—and Arnold makes some good points. America has been through all sorts of turmoil before.

The Great Depression. A bloody civil war. Two world wars. The Dust Bowl. The Cold War and all the nuclear brinkmanship that came with it. 9/11. The 2008 financial meltdown. We've seen cities burn, presidents resign, and banks collapse.

Plenty of those moments make the 1960s look tame by comparison.

So, I do appreciate Arnold’s perspective here. After all, he’s lived it. He’s the embodiment of the American Dream—a guy who came from nothing, barely spoke English, and still managed to become a world champion, a movie star, and the governor of the Golden State. If anyone has reason to believe America can bounce back from anything, it’s him.

But I also think that this "everything always works out" mentality has become America's most dangerous delusion.

It basically says: "Don't worry about taking action today. Don't make tough choices. Don't (even) acknowledge how serious things have gotten. Just lay back and enjoy the insanity—eventually, American exceptionalism will magically solve everything."

This mindset creates false security that lets problems fester until they become crises. It condemns Americans to inaction until it's too late.

This Time Really Is Different

Now, I can give you a book of reasons why today's problems are on a different level than the 1960s and 1970s.

Sure, those decades were socially tumultuous—assassinations, riots, Vietnam—and the ’70s were economically painful. But it’s not even a fair comparison. It’s like comparing a house fire to a refinery explosion.

Because today, it’s not just one or two big problems—it’s a dozen systemic ones all feeding off each other.

Social media turning people feral. Record-breaking illegal immigration. The Marxist rot in our education system (which, yes, began in the ’60s—but now it’s metastasized). AI threatening to wipe out entire industries. Woke-ism infecting everything from HR departments to the Pentagon. The collapse of family structures. A nation doped up on pharmaceuticals. Media turned pure propaganda. Unchecked mental illness dressed up as identity. The list doesn’t stop.

People in the 60s didn't face any of this. And thank God for that.

The problem is, a lot of this isn’t easy to measure. You feel it in your bones, see it in everyday life—but it doesn’t show up neatly on a spreadsheet.

You know what does show up?

The absolute train wreck that is the U.S. government’s finances.

The national debt recently surged past $37 trillion—that’s roughly $280,000 per household. The government is piling on $7.1 billion in new debt every single day, $296 million an hour, and nearly $5 million a minute.

These are truly mind-boggling numbers. You can step into the bathroom, and by the time you walk out, the U.S. will be another $20 million deeper in the hole.

For context, back in the 1960s the national debt stood at just over $300 billion—about $3 trillion in today’s dollars. Not ideal, but nowhere near the monstrosity we’re dealing with now.

And do you know how much of your income tax is spent just to service that debt?

According to the latest Monthly Statement of the U.S. Treasury (Page 9) “Interest on Treasury Debt Securities” in May was $92.2 billion. That’s 65% of the $142.3 billion the government collected in income tax receipts.

Put simply, 65 cents of every dollar you paid in income tax in May went to cover interest on the debt.

And that’s not even the full picture.

Interest payments now eat up about 35% of all federal tax revenue—and if current trends hold, we’re on track to hit 45% by 2035.

Note: Thanks to the recent passage of the “Big and Beautiful” bill—which adds another $2.3 trillion to the tab—we’re likely to get there a whole lot faster.

For comparison, interest in the 1960s took up about 5% of tax revenue.

If that doesn’t scream collapse-in-progress, I don’t know what does.

And as I mentioned in a recent piece, the $37 trillion headline number is just the tip of the iceberg.

Add it all up—Medicare, Social Security, federal pensions, and other off-the-books promises—and the real financial hole the U.S. government faces is closer to $150 trillion. That’s nearly $1 million per taxpayer.

None of this gets repaid. Ever. You'll just keep paying interest until the system breaks down or we get hyperinflation.

Arnold’s brand of optimism always gets applause because he’s telling people what they want to believe about America.

But the truth is, the system’s broken beyond repair.

You know it. I know it.

Why You Need a Plan B

The question is: are we actually doing anything about it?

Throughout history, rational people maintained options when facing uncertainty. It's called Plan B.

You keep emergency savings. You buy insurance. You diversify investments. Same logic applies here—don't put all your eggs in one basket, especially when that basket shows structural cracks.

For Americans today, that means:

• Financial diversification: Don't keep all assets subject to potential capital controls or wealth taxes.

• Real assets: Own tangible things that hold value during monetary crises.

• Geographic optionality: Secure legal residency somewhere stable as a backup if things deteriorate (while building connections and capabilities that don’t depend on the U.S. system).

We talk about all three in our essays, podcasts and publications. But when it comes to geographic optionality, no amount of reading replaces boots-on-the-ground experience.

That's why last March we organized our first Plan B: Uruguay event. Attendees came to explore what Uruguay offers—legal residency, foreign bank accounts, property investment.

It was a huge success. And since many couldn’t attend last time due to limited spots, we’re bringing it back this year.

Matt Smith and Doug Casey—who chose to settle in Uruguay after exploring over 130 countries—will share why they made it their Plan B destination.

If you’ve been thinking about a backup plan abroad—and according to the Financial Times, many Americans are—this is worth your attention (more info at the link below).

Let’s be clear: this isn’t about giving up on America—or rooting for its collapse. It’s about taking rational precautions while you still can.

Most people don’t realize that you need to set up your Plan B before things go south—while the system still works and options are still on the table. Because once a country tips into financial crisis, capital controls and travel restrictions are almost always the first move. By the time that happens, it’s already too late.

Regards,

Lau Vegys

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