Wow! $30 Trillion! That’s a Surefire Calamity!
The US national debt just set a new world indoor record. The official, on-the-books national debt reached $30 trillion on January 30.
The national debt has grown by almost $7 trillion in the last two years. Oh, brave new world! That’s more than $90,000 per American or $360,000 for a family of four.
If the dollar were a reliable unit of accounting, the debt would be unpayable. But since the dollar is not a reliable unit of accounting, the debt can be paid. All it takes is for the dollar to be inflated into near worthlessness. It may seem like that would take a lot of money printing, but it is not a big challenge for the monetary authority, the Federal Reserve. It has a lot of experience in currency debauchment. Since 1913 it has destroyed 97 percent of the dollar’s purchasing power. Since the money is all “printed” digitally these days, it takes no time at all. And they don’t have to fool around with all the mess of paper and ink!
So, printing the money into near worthlessness works for Washington and the monetary authority. It just doesn’t work well for you if your savings and retirement are all denominated in dollars. It doesn’t do much for American prosperity either.
Financial blogger Wolf Richter (WolfStreet.com) provides this 10-year chart of the national debt. As you can see, he labels where we go from here as “Debt out the Wazoo!”
That is a good description!
Note all the flat spots labeled “debt ceiling” where the debt appears to stop growing. That is another Washington flim-flam. The spending goes right on as usual, but they use accounting gimmicks to pretend that the debt isn’t growing.
As Richter says, “Each time after a Debt Ceiling charade is resolved in Congress, the administration is then free to borrow the money that Congress told it to spend, and the US national debt spikes to make up for the flat spots. The one thing the Debt Ceiling never does is slow down the growth of the US national debt.”
We can’t stop this government train racing to calamity. It was inevitable that it would come to an unhappy end on the day the Federal Reserve was created. But you can make sure your own personal wealth doesn’t crack up in the process by preserving it in real money: gold and silver.
If you would like to know more, speak with a Republic Monetary Exchange precious metals professional today.
Oh, and one more thing. $30 trillion is only part of the US national debt. It is the part that shows. The hidden debt that no one likes to talk about much is around $164 trillion. That’s five and a half times the size of the visible debt.