United States Government Debt:
(Chart source, Trading Economics)
Chief among the abusers of fiat currency is none other than the United States government, who has catapulted itself and its citizens into unsustainable, unmanageable debt levels, with no intentions of ever getting out from under the burden then have created for futures generations.
With each passing crisis, the United States under the stewardship of Keynesian economics has attempted and seemingly succeeded in getting itself out of trouble by simply waving the magic fiat money wand, creating ungodly amounts of money and papering over the ailments that plague the nation.
They are able to do this better than all other countries in the world because of the unique position that they find themselves in, as the United States bears the mantle, the crown of "reserve currency" of the world.
But for how much longer? How much longer can this title be abused and disrespected? Who knows, however, it is undeniable that a collapse could occur any-day, anytime, as we are far past the point of no return.
(Source, Peter Schiff via Twitter)
Many of you are well aware of the fact that US debt levels have been exploding higher, however, never before has it accelerated in such a spectacular fashion, with little to no regard to the long term damage that it may be causing.
As Peter Schiff recently highlighted on twitter, it took the United States 210 years to run up the Nation debt to $2 trillion dollars and only two months and two days to add the most recent $2 trillion.
In the past United States government was restrained fiscally by being on the gold standard, however, since casting off all sense of fiscal sanity and shedding prudence and caution, leaving the gold standard behind in 1971, they have acted like children with unfettered access to the cookie jar, abusing the US dollar in spectacular fashion.
(Source, usdebtclock.org)
This extreme acceleration of debt accumulation is out of control and is the only reason why the economy and the stock market did not completely implode during these last few months of forced lock-down, ushered in by government officials.
Perhaps this cost was worth it, perhaps it was not, however, what can not be denied is that we are far from out of the woods yet, and much more money printing, much more debt creation is going to be needed before this crisis is fully resolved, before the economy is truly back on track.
But what happens when normality truly returns?
Not this phony fiat injected stock market rally, that is mind-boggling seeing the S&P 500 nearing all time highs once again, while main street continues to suffer, while business fundamentals continue to erode due to the COVID-19 crisis, forcing bankruptcy after bankruptcy.
What is going to unfold is a wave of inflation the likes of which we have never before seen in the West, as all of the newly printed and all of the yet to be newly printed fiat currency floods the system, sending prices rocketing higher, while savings are eroded.
There will be few safe havens during this time of coming chaos, however, you can rest assured that chief among them will be gold and silver bullion, two assets that have protected their holders throughout the centuries from governments run a muck and runaway inflation.
It is during these times that precious metals truly shine, when they are at their best, however, the key to unlocking their protection is purchasing them in advance, not when they are exploding higher in price, as then you will be too late.
The storm is here, a storm is coming. Keep stacking.
- Source, Nathan McDonald via the Sprott Money Blog
