By Capital Gold Group, Special for USDR
Treasury Secretary Steven Mnuchin has called on Congress to raise the United States’ debt limit yet again. This will be the 15th time Congress has raised the debt ceiling since 2001.
As the Federal Reserve continues to pump printed money into the economy, the gap between fiat currency and physical assets continues to widen. Simply put: you can’t print gold, silver, or platinum. This makes precious metals the only surefire hedge looking out 10-15 years.
Looking at this graph, we can see that each of the last three presidents has watched outstanding public debt grow exponentially every year. We can expect Trump’s addition to this graph will continue upward, because despite the president’s intentions – Congress has no solution to the national debt, other than allowing another raise.
The Capital Gold Think Tank study examining the Never-Ending Debt Ceiling finds that the government has approved rate ceiling increases at a rate that will soon leave us paying billions per year in interest.
At this point, the Federal Reserve has boxed itself into a corner. This week we saw another rate hike of .25%, one of multiple hikes anticipated for this year. If rates climb past a certain point, then interest payments on the national debt will become too high for our government to afford its budgeted expenses, including social services.
This is one reason the Fed must be careful not to raise rates too high too fast. If they did, they might raise the government’s interest payment past what they can afford without tanking the GDP. This is really the economic issue of the age: debt upon debt and payments going higher.
Since Congress has no solution, they repeatedly shove the national debt crisis under the rug and agree to more ceiling hikes. There’s no way around it: national debt is a cancer growing on the economy of the USA.
With the press concentrating on stories of wiretaps and Russian spies, reporting on this severe issue is lacking. Meanwhile the monetary policy of the USA is building a massive house of cards, and the ugly reality is this: no one is bailing out the USA.
How much longer can the economy withstand adding zeroes on a computer screen at the Federal Reserve in lieu of paying the nation’s bills? In the meantime, the American people are getting inflated out of their retirements.
With no solution, it looks like the Fed will just continue to print money and raise the debt ceiling until something explodes, at which point owning precious metals will be advantageous. Precious metals investors will have control of “true money,” not printed and devalued fiat money.
SOURCE Capital Gold Group
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