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.

We’re in a demographic and fiscal dead end. It’s a very dangerous prospect and one with no obvious answer on how to escape. The first thing to do is to stay out of the financial market—stocks, bonds, and everything else.

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.

Is gold perfectly priced, or do the central banks know something we do not?

Large budget deficits over the next 30 years are projected to drive federal debt held by the public to unprecedented levels - from 78 percent of gross domestic product (GDP) in 2019 to 144 percent by 2049.

If the Strait of Hormuz gets shut down for any length of time that’s going to be a black swan event and such an oil price and supply shock would take nearly everyone by surprise. As such, you need to have a plan in place for what you’re going to do if - or when - that happens.

The International Monetary Fund (IMF) has warned that the world economy is at risk of another financial meltdown. Here's why.