Attention! Deficit Disorder!
No Wonder Gold is Flying High!
Things are out of control and won’t get better! That’s why gold is up more than 34 percent in the last 12 months!
Washington’s fiscal year ends in just a couple of weeks and it’s going to be a doozie! No wonder gold is flying!
Bloomberg News:
The US federal budget deficit surged in August with one month to go until the end of the fiscal year as higher interest costs continued to weigh on the overall balance.
The $1.9 trillion gap for the 11 months through August was up 24% from the same period last year, Treasury Department data released Thursday (9/12) showed. For the month of August alone, the deficit was $380 billion.
That story comments on the official deficit news through the end of August. However now, only weeks later in the middle of September, the annual deficit is already over $2 trillion! That means the Federal government is spurting red ink at the rate of $5.50 billion per day!
That is a serious deficit disorder!
Economist Stephanie Pomboy commented on X, “QE infinity coming soon. No wonder gold is flying.”
Make no mistake about the seriousness of this situation. Uncle Sam now has to borrow money to pay the interest on its debts. Imagine if you had to borrow money on your MasterCard to pay the interest on your Visa.
The gross national debt is about $35.4 trillion. That’s 123 percent of the total productivity of the US economy (GDP). That’s a world indoor record! It’s higher than the World War II debt to GDP ratio. And that was the result of a war. You know, Pearl Harbor, Iwo Jima, the Normandy invasion, the Battle of the Bulge.
The main battle now is the one with the politicians buying every vote they can so they can get re-elected. Only in their self-important dreams can that compare with Okinawa, the Battle of Manila, or Anzio.
In 1980 the debt was less than 35 percent of GDP. Even in 2000 it was only 56 percent. Now, to repeat, it’s 123 percent.
One of the little-known reasons the Fed has to lower rates: Its rate hikes over the last two years have sent interest costs on the national debt soaring. Today the interest expense on Washington’s debt is a staggering $3 billion per day. That is not just a meaningless number. It is money that the American people have to come up with. They pay it by one means or another: by taxation, inflation, or shifting as much of the debt burden as they can onto their kids. Last year interest expense on the US debt amounted to $2,868 for every person living in the US.
But as the announcers say on the late-night TV commercials, “But wait! There’s more!”
Despite the mind-bobbling irresponsibility of Washington’s letting things get out of hand, please bear in mind that we’re not even talking today about the hidden US debt, which is now up to about $219 trillion. That is money Washington has promised to pay to widows and orphans, and disabled veterans and retirees. Those are unfunded promises Washington has made to people who count on those promises to make ends meet.
Let there be no doubt about what we are saying. There is going to be a lot of pain. Suffering that is immeasurable is headed the way of people for relying on the most scandalous governing class this nation has ever seen.
Please get out of the way of this train wreck by keeping your wealth in the real and enduring money of the ages, gold and silver. You won’t be able to avoid some of the flying debris of a nation undergoing a high-speed collision with monetary reality, but you will have highly desirable monetary assets in the crisis.
Most people won’t.