The great anti-federalist Brutus wrote, “I can scarcely contemplate a greater calamity that could befall this country, than to be loaded with a debt exceeding their ability ever to discharge.”
And here we are.
With little fanfare, the national debt blew past $32 trillion last week.
Congress “solved” the debt ceiling problem by effectively eliminating borrowing limits for the next two years. But it did nothing to address the underlying problem. And that underlying problem is painfully obvious when you look at the monthly budget deficits the federal government continues to run month after month.
In May, the Biden administration piled another $240.3 billion onto the fiscal 2023 deficit, running it to $1.38 trillion with four months left to go, according to the latest Monthly Treasury Statement.
The debt ceiling drama ended with fake budget cuts and a shiny new credit card with no limit for the federal government. We can now expect a big surge in the national debt as the US government plays catch up after nearly six months up against its borrowing limit.
So, how might this impact the price of gold?
If history is any indication, it will likely drive it higher.
In this episode of the Friday Gold Wrap, host Mike Maharrey engages in a little “I told you so!” discussing a couple of things he got right, including his assertion that the real problems would start after the debt ceiling deal and that it was important to keep your eye on the commercial real estate market. He also talks about the yo-yoing gold price this week.
I warned you.
I said when the fake debt ceiling fight ended, the real problems would begin.
Well, the debt ceiling fight is over, and here we are.
On the first working day after the so-called Fiscal Responsibility Act went into effect, the national debt surged by $359 billion.
We have a debt ceiling deal.
And the deal is there is functionally no debt ceiling until January 2025.
If you buy gold or silver, you’re going to pay a premium. So, what exactly is a premium and how is it determined? In this episode of the Friday Gold Wrap, host Mike Maharrey answers common questions about premiums. He also discusses the debt ceiling deal and reveals where Americans rank gold as a long-term investment.
The debt ceiling “crisis” is coming to a head. We’re pretty confident Republicans and Democrats will strike a deal and raise the debt ceiling. That’s supposed to solve the problem. But Friday Gold Wrap podcast host Mike Maharrey says the solution is the problem. In this episode, he also offers some bullish perspective on silver.
We are in the midst of yet another debt ceiling fight.
This is mostly political theater. That being the case, both Democrats and Republicans are using the drama in an effort to score political points and push policy in their preferred direction.
And since politicians are involved, they’re telling a lot of lies.