Peter was recently featured on Real America hosted by Dan Ball.
It’s no secret that the government has been spending more than it collects, and there are indications that the Biden administration is addressing this issue.
There’s been lots of talk within the Biden Administration about forgiving student loan debt. But with chaos widely reported at companies that service student loans, some debtors can’t even figure out how much they owe — much less actually pay down their balances.
In a disturbing (but unsurprising) trend, more than 1 out of 4 US consumers are throwing in the towel with defeatist “Doom Spending” sprees — despite already being saddled with crippling levels of debt. This behavior is akin to someone who, feeling overwhelmed, indulges excessively in a habit they know isn’t beneficial. In a similar vein, these Americans, perhaps feeling a sense of despair, are accumulating unprecedented levels of new debt through spending sprees that are beyond their financial means.
The US is on the brink of a debt disaster, spiraling into $33 trillion of debt. That is over 180% of GDP.
The cause?
Skyrocketing government spending matched with insufficient tax revenues, leading to ever-deepening deficits.
The US Treasury is now low on credit and out of time.
Interest payments on this colossal debt have doubled since 2020, pushing the government into a corner. The Federal Reserve’s 2023 decisions to raise rates add to the turmoil, and the US Treasury is running out of debt buyers. A recent Treasury auction turned chaotic, revealing a global decline in appetite for US debt.
Our guest contributor asks the question of the hour: Are the chickens coming home to roost for the US Treasury?
The Federal Reserve recently surrendered in its inflation fight. But price inflation is nowhere near the 2% target. Why did the Fed raise the white flag prematurely?
One of the major reasons is debt.
The world is buried under record debt levels and the global economy can’t function in a high interest rate environment.
“Resilient” American consumers are digging into their retirement funds to pay their bills.
Mainstream financial pundits, politicians, and Fed officials keep telling us the economy is strong because Americans keep spending money. They just assume this is a sign of economic strength without ever asking exactly how they’re paying for all of this “robust” spending.
The technical position for gold is looking very positive for higher prices. But technical analysis should be backed by fundamentals.
To a large extent, fundamentals are in the eye of the beholder, whose opinions in any situation can vary from positive to negative and everything in between. But even for the economic optimists, there are gathering clouds on the horizon likely to continue undermining the global economic outlook, the dollar, and all financial asset values. Fiat currencies are being downgraded relative to real money, which is gold.
Optimism is driving the markets. Most investors seem to believe the economy is strong. The consumer is resilient. Price inflation is easing. And most people think the Federal Reserve is finished hiking rates. In his podcast, Peter Schiff explained why this investor optimism is at odds with reality.
This week, gold and silver extended their correction of October’s sharp rise. In European trade this morning, gold was $1953, down $24 from Last Friday, and silver was $22.54, down 66 cents. Comex volume in both contracts was moderate.
The day of reckoning for unproductive credit is in sight.
With G7 national finances spiraling out of control, debt traps are being sprung on all of them, with the sole exception of Germany.
