Debt & Deficits

OK, folks, let’s get some popcorn and watch “The Debt Ceiling Farce 2021” as it unfolds! Everyone knows how this will end. Since 1960, the farce played 78 times. Each time, after everyone got through extorting concessions from the other side, Congress either raised the debt ceiling, extended it, suspended it, or changed the definition of “debt.” That’s how it ends.

The debate in Washington over when and how to increase the debt limit is less than 100% accurate. Here are some myths about the debt ceiling and the debate about raising it.

Debt has risen on all fronts to unprecedented levels...and now accounts for $52 trillion in the USA of which American household indebtedness amounted to an average of $118,000 per household in 2020. That’s a big bill to pay. Here’s how the various forms of U.S. household debt compare...

Explosive fires always end in everything burning down or imploding eventually and this is just what is going to happen in the next few years. A massive forest fire is not just totally inevitable but is also an absolute necessity.

With deficits growing wider each year, we believe there is a very high likelihood that the price of gold will rise in the next few years.

There appears to be no end in sight to the borrowing and spending. As such, the U.S. central bank has worked itself between a rock and a hard place - rampant inflation or a crashing dollar. Let me explain.

2020 was a milestone in the sordid history of the long-running U.S. trade deficits. As the rest of the world cut back on buying U.S. goods, U.S. consumers were doused with government money, and they switched from buying services — from haircuts to plane tickets — to buying goods, a large portion of which was imported.

The value of a currency is determined by a number of variables. In this article, I will focus on the dynamics of demand, supply, current account deficits, and aggregate government debt.

You have been warned! The financial world is descending into the trap of exponentially increasing debt that leads, slowly or rapidly, toward an abyss of monetary madness that can only mean much higher gold and silver prices in the future.

The pandemic lockdown will be blamed for the Greater Depression, but the lockdown only toppled all the dominoes that were already lined up.