There are eight key indicators to watch as the US government falls deeper into the self-perpetuating debt spiral.

Indicator #1: Federal Budget Deficits

The chart below shows the actual and projected federal budget deficits.

It's important to note that these projections rest on the ridiculous assumption that there will be no wars, recessions, or other events that drive additional federal spending. That assumption is already out the window with the Iran war: the Pentagon has requested an additional $200 billion, for starters.

Even with this rosy and unrealistic forecast, the US government is projected to run a cumulative deficit of over $22 trillion over the next ten years—deficits that will have to be financed by issuing more debt, a significant share of which will likely be bought by the Federal Reserve with "money" it creates out of thin air.

Indicator #2: The Federal Debt

The federal debt has exceeded $39 trillion, representing more than 124% of GDP.

It's important to remember that GDP is a flawed statistic. For example, it counts government spending as a positive. A more honest measure would count government spending as a big negative, as it compounds the debt spiral. In the US, government spending accounts for at least 37% of GDP.

In other words, the amount of debt relative to the productive economy is much more than the official numbers suggest.