It’s worse than I imagined.

I had initially thought that the current debt ceiling deal would feature a small amount of spending cuts in 2024.  In reality, it will feature NO CUTS and will in fact open the door to as much spending as the Biden Whitehouse desires.

How is this possible?

A single line in the fine print from Section 265: The OMB director has sole waiver authority to spend if it’s “necessary for program delivery.” (H/T. Rep Nance Mace for catching this).

What does this mean?

OMB stands for Office of Management and Budget. This is the part of the Executive Branch in charge of “overseeing the implementation” of the President’s “vision” for the economy.

The OMB director is appointed by the President. And according to the current version of the debt dealing congress is voting on, this person has “sole waiver” authority on spending caps.

Put simply, she (the current OMB director is Shalanda Young), is permitted to spend as much money as President Biden wants, provided the spending is deemed “necessary” to deliver on programs that meet his vision for the economy.

So much for spending caps! This is the equivalent of handing a credit card to your 10-year-old child and saying, “you can only spend $100… unless it’s for something you think you need.”

We both know how that would turn out.

The reality is that this debt deal opens the door to a LOT more spending by the government, a mere 17-18 months before the next Presidential election. I’m sure the government will become fiscally conservative between now and then. After all, they’ve only grown the debt by $8 trillion since early 2020.

More and more the U.S. is beginning to look like an emerging market economy. Rampant spending, rampant corruption, and rampant inflation. Gold’s figured out what’s coming which is why it’s hanging around $2000 per ounce despite the Fed raising rates aggressively in the last 12 months.

Some investments will make fortunes from all this government spending/ inflation, others will absolutely implode.

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