Commodity Trade Mantra

Posts Tagged ‘Federal Debt’

How Will the Election Outcome Impact Gold and Silver?

The looming national bankruptcy coincides with this year’s extraordinarily divisive election. As the trust and prestige of our Federal government fades, the potential for social unrest and even wrenching change in governance and policy is on the rise. If crisis is coming in the next presidential term, the people holding physical gold / silver will almost certainly be glad they did.

Gold Investment - The Cornerstone of a Well-Constructed Portfolio

John Embry highlights the pressures that have brought fiat currency to the brink, U.S. debt liabilities to staggering heights, and gold back to the institutional investor’s crosshairs. A must for anyone seeking to fully understand the state of the global economy and its implications for gold and silver, and why gold remains a cornerstone of a well-constructed portfolio today.

Friday May Have Marked A Pivotal Turnaround In Gold And Silver

Friday could well be the game-changer so many have been anticipating. Everything in developing market activity has to fit into a context, and our read for gold and silver has been guardedly bullish. Friday may have been the final trigger to resume the impressive rally from last November & confirm a bottom is in. Let’s see if the market will deliver on its message of apparent strength.

Charts with more Words than Registered Gold at COMEX

COMEX has NEVER EVER gone into an active delivery month with such a small amount of registered gold available. In fact, I cannot remember a time when the registered category was ever more sparse than it is now. The amount of gold in the registered category is now roughly $80 million. This is not only scary, I cannot believe COMEX would allow these numbers to be seen.

Everything You Need To Know About Debt

Debt has become so ingrained in the American lifestyles, it’s borderline impossible to live without a credit card or a loan. What is debt, exactly & does it have a limit? How big is the debt & why do we have so much? While debt may seem like an abstract concept, when the federal debt is exceptionally high, the consequences are very real. Here are the answers.

Global Debt Now $200 Trillion!

Global debt is now in the region of $200 trillion. Unless and until the debt based system is replaced there can only ever be an increasing debt load and an urgency for economic growth with the consequent degradation of our environment and a debt enslaved humanity.

An Endless Fiscal Crisis Looms

Since 1985, fiscal policy went on automatic pilot — where it has more or less languished ever since. – U.S. nominal GDP will be lucky to reach $24 trillion by 2024 or so. The math computes out to a public debt equal to 140% of GDP. For all practical purposes, it means an endless fiscal crisis lurks in the nation’s future.

The World’s Largest Subprime Debtor: The US Government

Six years ago financial institutions were demonized as subprime borrowers who could not repay their loans. If the federal government turns out to be just another subprime debtor, we should expect the blame to be placed on the Federal Reserve for fostering such a situation and allowing it to persist for so long.

How Economies Collapse: Systemic Friction and Debt Are Self-Liquidating

Paying for unproductive friction with borrowed money has generated the illusion that piling up debt is risk-free as long as interest rates are low and the government backstops all the debt. The final illusion is that there is no mechanism to brake the expansion of debt: that the “solution” to rising interest costs is to borrow more money.

Why We're Doomed: Interest and Debt

Even if the economy were growing at a faster pace, it wouldn’t come close to offsetting the interest payments on our ever-expanding debt. This leaves the entire Status Quo increasingly vulnerable to any sort of credit shock; either rising rates or a decline in the rate of debt expansion will cause the system to implode.

Government Shutdowns, The Debt Ceiling And Gold

Longer term investors buy gold because they must expect that government debt and monetary inflation will indeed continue on the path they have been on for quite some time now and that the date with destiny is very likely unavoidable.

Treasury Warns Default Impact Could Last A Generation

The U.S. has never defaulted on its obligations & the US dollar and Treasury securities are at the center of the international financial system. A default would be unprecedented, catastrophic & negative spillovers could reverberate around the world.

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