Debts Lift Gold

The US national debt alone is nearly $28 trillion. This doesn’t include the $159 trillion of unfunded liabilities, which brings the total to $187 trillion or about $480,000 per American citizen. This number also doesn’t include the $21 trillion in unaccounted federal expenditures discovered by Prof. Mark Skidmore and his economic students at Michigan State University.

Global debt hit $277 trillion last year, or 365% of world gross domestic product (GDP). Public debt as a percentage of GDP has soared to unsustainable and perilous levels. The US debt-to-GDP ratio hit 136% last year. Canada’s debt-to-GDP ratio increased by nearly 80% through the third quarter of 2020, the highest rate among developed nations.

When you translate these incomprehensible and burgeoning debt totals into per capita obligations, it is obvious that they will never be repaid. They can only be inflated away.

Combined with hundreds of trillions in unfunded government liabilities, swelling debt and unregulated financial derivatives form a bottomless abyss that eventually will engulf nations and swamp the entire financial system. Little wonder that in 2002, billionaire investor Warren Buffett dubbed derivatives—which essentially are debt instruments used as collateral to take on more debt—“financial weapons of mass destruction.” At that time derivatives totaled $100 trillion, whereas today they are in excess of $1 quadrillion.

Socialists maintain public debt is acceptable when borrowing is for the common good, and Modern Monetary Theory (MMT) advocates claim unlimited government spending is not a problem. They believe governments can create an infinite amount of currency to fund social services and public works projects. They fail to recognize that debt is not wealth and increasing the currency supply decreases its value and produces price inflation.

Nations cannot borrow and spend their way to prosperity. They cannot print their way out of persistent economic slumps without eventual and adverse results. Borrowing more to solve a spending problem is a desperate and preposterous ploy used by reckless and self-serving politicians and their enabling central banks.

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Disclaimer: The information contained in this article/video provides a general overview of subjects covered, and the expressed personal views and opinions are not intended to be taken as advice ...

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