After taking an early lead in the Democratic primaries, Bernie Sanders, Elizabeth Warren, and their “socialist” plans for America ran aground. All the talk of free college, college debt forgiveness, and Medicare-for-All quickly became a distant memory for most Americans. Nevertheless, the coronavirus pandemic caused Congress and the Fed to crank up the printing presses again. In spite of conservative intent, we’ve got the printing press pedal to the metal. Our already abused fiat currency is into another round of serious inflation creation. Other economic factors have kept its appearance concealed, but when it gets loose, it will get ugly.
As pathetic a fiduciary job we have done, managing the world’s premier global reserve currency, our malfeasance has been obfuscated by a general global economic chaos. Argentina, for example, defaulted last month, for the ninth time in the past century. But there’s no denying that the Fed’s balance sheet has been exploding. The central bank has pushed $3 trillion into the economy over the past two months alone, and its total assets now exceed $7 trillion. We need to be more responsible than simply leaving this for our children and grandchildren to deal with.
In spite of the fact that we need to do better, the fact of the matter is that total global debt has risen by $87 trillion since the start of the 2008-2009 global economic crisis. That puts the current global national debt at nearly $255 trillion. An even worse way of looking at that number is to realize that global debt currently stands at 322% of total economic output. Recession, inflation, and further economic fallout from the coronavirus pandemic ensure tough times ahead.
As fiat currencies degenerate and ultimately collapse, gold, silver, and other precious metals will skyrocket in value, just like they have throughout history. Much to their chagrin, Bank of America raised their anticipated valuation of gold earlier this year, from $2,000 an ounce to $3,000 an ounce, by this time next year. Don’t wait for the music to stop before you increase your position in physical precious metals. Call the experts at American Bullion now, at (800) 653-GOLD. That’s (800) 653-4653. Protect your assets, family, and legacy. Call now, before prices go vertical.
Although the information in this commentary has been obtained from sources believed to be reliable, American Bullion does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice. American Bullion will not be liable for any errors or omissions in this information nor for the availability of this information. All content provided on this blog is for informational purposes only and should not be used to make buy or sell decisions for any type of precious metals.