New Debt In 2020 – Gold Prices Soar
Few seem to be monitoring or expressing serious concerns about our growing national debt. Sooner or later the presses will stop, confidence in the dollar will wane, and our currency may just become worthless paper? Why do you think gold and silver prices have soared?
We will soon be $24T in debt, higher than ever in our history as a nation. That’s $68,572 dollars for every citizen in the USA (based on an estimated population of 350M for the US pre-2020 census).
A family of four has a collective debt of a quarter million dollars as “shareholders” in our nation.
Congress’ discretionary budget for TRUMP’S-FY 2021 is $1.485. The overall budget is $4.829T.
This means Congress has control over ONLY 30% of the budget. The rest is committed to entitlement programs etc. As our growing interest liability accrues, Congress will have less uncommitted dollars to spend. The danger will be when they have no more resources to fund the military and Social Security/Medicare!
While interest rates are now low, sooner or later, those countries that hold our notes are going to demand more interest on the debt. At just 3% , the interest on the nations debt is $720B a year or $2B approximately a day, $83.3M an hour or $1.4M second.
My friends, this is unsustainable. Yes the COVID-19 crisis imperils our health as a nation inasmuch as our growing national debt imperils our long term financial health and stability. This is why the State governments have to carefully balance the health protection of their citizens with the economic health of the Country. State government can be over-zealous in keeping our State shut down with severe irreversible consequences to our overall financial health as a nation. Remember, our economic security is a national security issue.
Congress can’t seem to stop the fast paced “shoveling of money” already talking about a new expensive stimulus plan before the ink is dry on the previous one! How much more can we afford to borrow before the dollar bill is not worth the paper the ink is written on?
1. Open our States NOW, but.. carefully. MANDATE masks, social distancing, continue to pursue a high rate of testing.
2. Keep our medically vulnerable populations isolated until we have a safe environment.
3. If we can open Targets and Walmart’s we can open other non-essential businesses that are essential to the lives of their owners. We can do it responsibly with government and public safety guidance.
Government needs to stop picking WINNERS and LOSERS in this crisis.
It’s time to get back on a path of normalcy and NOT embrace this as a NEW NORMAL….NEVER!
- National debt: Shutterstock