Last Tuesday, the Treasury Department reported that total public debt outstanding surpassed $30,000,000,000,000…[which] serves as a dire warning for American workers, investors, and retirees…and, regardless of which party controls Congress or the White House in the years ahead, the inertia of rising spending and borrowing will be politically impossible to escape so what’s the end game? @HELP
@$No plausible path to fiscal soundness exists. Interest payments plus defense, entitlements, and other categories “mandatory” spending overwhelm any discretionary spending that could theoretically be cut…
Although a debt default is technically possible, it can be averted in perpetuity under our monetary system.
- The Federal Reserve can simply create all the currency the government needs to pay its bills. It can buy Treasury bonds in unlimited quantities.
- It could even facilitate gimmicks such as trillion-dollar platinum coins that enable the Treasury Department to generate massive revenue streams without having to issue new bonds.
@$$One way or another, the coming debt crisis will morph into a currency crisis. It will likely build in a vicious circle: rapidly rising debt levels and servicing costs require rapid expansion of the currency supply – which in turn causes inflation to pressure interest costs higher…
Wise investors can see the writing on the wall. They are taking steps to protect themselves now from the great currency debasement ahead…
- Bonds and cash. promise steady returns for conservative investors, but in an environment of negative real yields they will conserve nothing.
- The only “cash” with a proven track record of conserving purchasing power over time is hard money – gold and silver.
…[Owning gold and silver] requires patience and commitment on the part of investors to keep holding onto their precious metals stack during the inevitable downturns carried out in futures markets but the inevitable upturns will more than make up for periods of underperformance…[A] currency crisis or 1970s-style stagflation cycle…can produce spectacular bull market gains in gold and silver over and above inflation.
The opportunity now is that metals are underpriced relative to the crisis protection they provide. Silver, in particular, is historically cheap compared to just about any other commodity on the planet. The upshot is that when silver is ready to move, it can take off like a rocket.
The above version of the original article from moneymetals.com was edited [ ] and abridged (…) to provide you with a faster and easier read.
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