Buy gold before the next gusher of Fed funny money!
The US government deficit has exploded!
What’s up? The Wall Street Journal cites a deadly conjunction of two things at once: “: a steep drop in tax revenue related to capital gains” and at the same time “an increase in interest payments on old debt.”
Wolf Richter describes it this way:
“The gigantic US government debt is now approaching $33 trillion, amid a tsunami of issuance of Treasury securities to fund the mind-blowing government deficits and roll over maturing securities.”
None of this stuff is very complicated. As long as Washington keeps spending money it doesn’t have, it will have two choices for funding its deficit spending:
A. It will have to borrow the money. But interest rates are screaming higher thanks to massive government borrowing. And funding that borrowing at ever higher rates is already a fact of life as the following chart illustrates.
B. Or it will have to print the money to fund the deficit. That is by definition inflationary.
Meanwhile, the cost of energy is soaring. That will show up in the price indices in no time. It is the equivalent of a tax on American households and businesses.
Let’s look at this like adults. The spending game should have been brought under control many years ago. Instead, the political classes learned to buy votes by making promises to people and to reward its cronies for their campaign funding by letting them feast at the Capitol Hill hog trough. Now we suffer the consequences of generations of irresponsible governments.
The Bidenistas and the left are hiding behind something called Modern Monetary Theory, which holds that the government can spend whatever it wants because it owns the printing press. Any country that will believe such nonsense probably deserves its fate — bankruptcy!
We can’t tell you the exact day and hour of the next massive Fed money printing spree, but the trajectory is clear. It is very soon. Possible triggers include the snowballing financial stress in China and a global economic downturn, a stock market breakdown, a disastrous US Treasury debt auction, more energy price hikes, and advancing trade wars.
That is why foreign dollar holders are de-dollarizing their reserves. That is why you would be wise to de-dollarize as well with the enduring money of the ages worldwide: gold and silver.
We’re here to help. Republic Monetary Exchange is a market leader in gold and silver, real money you hold in your hands. Real money for free people. Contact us today.
