Commodity Trade Mantra

Posts Tagged ‘Budget Deficits’

Global Gold and Silver Produced in 3 Years = Only the Interest on US Debt

The financial disaster taking place at the US costs one heck of a lot of gold and silver. In 2015, the US Federal Government paid $402 billion just to service the interest on its debt. The total value of global gold production in 2015 was $122 billion while that of silver was $14 billion. So the US could purchase 3 times the global gold and silver production in 2015, just by the interest on its debt.

Push Gold Prices Higher to Unleash Inflation - The Elite’s Master Plan

Yesterday, I explained how the monetary elites are looking to engineer higher gold prices to generate inflation since nothing else has worked. That’s the first answer. Today, I show you the second part of their plan, which may already be underway. The plan now is to have much larger budget deficits. When the government spends & deficit finances it, it will eventually produce inflation.

Paper Money Versus The Gold Standard

Many critics of the gold standard consider this a rigid and inflexible “rule” about how the monetary system and the quantity of money in the society is to be determined and constrained. Yet, the advocates of the gold standard have long argued that this relative inflexibility is essential to discipline governments within the confines of a “hard budget.”

The End of the Debt Cycle

Tokyo’s debts have grown so large that 43% of tax receipts are required just to service its debt, to say nothing of the amounts needed for current and future deficits. Try living on 57% of what you earn (the rest goes to pay your creditors) while still spending more than your income. You can imagine how far you’d get if you tried this at home.

Europe: Stagnation, Default, Or Devaluation

When a country accumulates too much debt and begins to find the roll-overs a growing challenge, it really has just two options: the first is a total or partial default; the second is a large currency devaluation. The second choice begs the question ‘Who prints the currency in which the debt is labeled?’

The Case for Investing in Gold - Why to keep on Investing

The last 2 years have disappointed gold investors and sharp declines after a day of rises last week epitomized the frustrating price movement – If gold can’t stay elevated on the Fed’s “No Taper” what hope is there going forward – Why bother Investing in Gold?

Currency Wars: The Latest

How money is being used to further national interests… Japan has opened a new front in the ‘currency wars’, a term […]

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