Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)
POSTED ON January 25, 2022  - POSTED IN Original Analysis

The Federal Reserve is talking about raising interest rates. But the US economy is buried under piles of debt. I’ve been asking how this is going to work for months. Apparently, the question has finally occurred to the mainstream.

A CNBC article declared, “Fed rate hikes will intensify a global debt crisis, research warns.”

POSTED ON January 10, 2022  - POSTED IN Original Analysis

The Federal Reserve is talking about raising interest rates. Well, that’s going to be a big problem for American consumers who are running up debt at a torrid pace. This is yet another reason why the Fed can’t do what it’s claiming it will do.

Consumer debt jumped 11% year-on-year in November, according to the latest data released by the Federal Reserve. It was the biggest single-month jump in consumer debt in 20 years.

POSTED ON January 7, 2022  - POSTED IN Exploring Finance

The debt ceiling was raised in December and the Treasury responded immediately, adding $709 billion in debt over the month.

To be fair, $470 billion of this was non-marketable, as shown below.

Note: Non-Marketable consists almost entirely of debt the government owes to itself (e.g., debt owed to Social Security or public retirement)

POSTED ON December 21, 2021  - POSTED IN Original Analysis

Labor market productivity has been dropping for decades. And you can trace the plunge back to the demise of the gold standard.

US labor market productivity plummeted in the third quarter of 2021. Revisions to the data showed a 5.2% drop in productivity, even worse than the dismal initial reading last month. It was the worst productivity decline since 1960.

POSTED ON November 8, 2021  - POSTED IN Exploring Finance

After all the drama, Congress finally did what everyone knew it would do.  It raised the debt ceiling by $480 billion in October. The Treasury wasted no time and quickly added $480 billion to the national debt in the second half of the month.

With this new debt tagged on, if the Fed has to raise rates to 6% to fight inflation, it would increase interest costs by $250 billion within 6 months and nearly $1 trillion within a few years. This is why the Fed must tell everyone that inflation is transitory.

Call Now