Debt & Deficits

The debt ceiling is of course a total farce. Why? Because it has been raised 95 times since 1940 and 14 times in this century. As a result, there is now a clear disconnect between the credit expansion and the lagging gold price which will soon be rectified as gold not only catches up with the debt expansion - but overtakes it.

No one knows for sure but you don’t need a PhD in economics to realize that this might not have a happy ending - or that you might want to think about a Plan B.

The idea of "maintaining a certain standard of living" has become a foundation in our society today. Americans, in general, have come to believe they are "entitled" to a certain type of house, car, and general lifestyle which includes NOT just the basic necessities of living such as food, running water, and electricity, but also the latest mobile phone, computer, and high-speed internet connection. (Really, what would be the point of living if you didn't have access to Facebook every two minutes?) Like most economic data, you have to dig behind the numbers to reveal the true story so let's do that, shall we?

It’s impossible to look at global debt stats & facts, or a single country’s national debt, in complete isolation. There are many factors to examine to best understand the impact of global debt on the economy and this infographic provides a clear-cut analysis of important global data, and it shows you the specifics of how much different countries of the world owe compared to their GDP. It’s simple, it’s straightforward, and it gives you everything you need to know.

The Fed, together with other central banks from around the world, have created the perfect crescendo of worldwide credit bubbles and asset bubbles leading to the excesses and decadence which are the normal finale to a secular trend. They have totally destroyed all major world currencies and left the world with debts that cannot and will not be repaid with normal money. As such, there are only two alternative outcomes, debt default or hyperinflation. Both will have disastrous consequences for the world economy.

The U.S. government is hopelessly bankrupt reporting last week that it has a negative net worth of MINUS $75 TRILLION. Here's a look at how they see this problem being resolved - or not.

Is $40 trillion by 2025 even possible? Unfortunately, yes. This means you need to pick your investments with great care and prepare your business now. If you’re ready, you can take advantage of the sale of a lifetime ahead.

The U.S. national debt has soared to over $22 trillion – up $16 trillion since 2000, $11 trillion since 2008, and $2 trillion in the past three years alone - and is expected to rise to $30 trillion by 2030. Should we be worried?

We are broke and have decided to ignore it. The implied hope is that the repercussions will be in someone else's lifetime and that they won't be too painful. This is simply wishful thinking.

The U.S. debt bomb is much higher than most Americans realize. When the U.S. economy finally starts to implode investors need to understand that ASSET values will evaporate while DEBTS stay the same. That is a recipe for disaster.