Those dollars that the US government owes must be inflated away!
As paying back 33 Trillion dollars is not feasible in today's version of dollars.
So they must be paid in even more worthless dollar currency units.
If the US government stops spending they will send the US economy into a recession.
They must continue to pump money into the economy and the stock...
The "real value of the US Gov't Debt" is a different way of looking at our situation through rose-colored glasses, but it is a fair analysis.
If we "adjust the debt level for inflation" as measured by the CPI Index (All Urban Consumers Index) from the beginning of the series back in 1966, you will have a line that is grinding SIDEWAYS since October 2020 at a...
Was curious to see the spread between the US National Debt and Real GDP. As we can see, the National Debt was sustainable prior to 2016 as productivity was greater, but this has since changed. How long can we continue this, especially with a looming recession aka reduced productivity in spite of continued deficit spending?
Just curious to see how the Real GDP chart stands against the National Debt chart. According to this, there is currently almost a 50% spread between productivity and fiscal spending. Is this sustainable?
U.S. default
A topic that has been stirring people's minds in recent months is the U.S. debt ceiling. The general public is asking the question:
"Will the national debt ceiling be raised or will the U.S. default?"
The national debt is the result of the government's financial borrowing to cover the budget deficit. And, as you might have guessed, these...
Endless trillion of money printing has been ongoing for a long time now. The dangers of this has been the normalization in people's minds that it is somehow natural, good, simulative and healthy. As the charts shows in reality it has never been so unnatural, bad, surprising and unhealthy.
During this time we have given a voice to crazy economists (Ie #MMT) that...
Even priced in gold, total public debt * fed fund rate is in at CRITICAL historical levels.
GENERATIONAL BOTTOMS for gold are forged at these levels.
#Gold #Silver
Guys, if I may chime in. Whenever I see 2 instruments overlaid on a chart, my reflex is to see how they perform vs each other.
You'll often find out that ratio is the Rosetta Stone you were looking for!
#debt #dxy #usdollar #fintwit
❗ WARNING ❗ You're about to read an unpopular opinion...
Over the past few days, we've seen bullish price action across nearly all markets. Infact, this is the first time since 2013 that Bitcoin has closed so many green dailies consecutively. This entire market reversal seemed a bit sudden, and many claimed "bull trap". (I'm a believer in the Macro, so when it...
I will never be impressed by a nominal number, no matter how many zeros are attached to it.
Step one to remove the illusion, measure in gold.
Then you will see that number for what it really is.
#DebtCeiling #debt #gold #xauusd #silver #inflation #fintwit
There appears to be a 2-3 year delay between the current debt rates (US) and actually debt payment increases. It seems very likely that debt payments as a percent of tax receipts will go up to 28% similar to 2019 and 2020. What happens after that. It seems unlikely to me that GDP will continue to feed increases in federal tax receipts. 30% and above is next.
The importance of recent move in Fed Fund Rate is more visible when you consider US Total Public debt.
Approaching system breakage territory...
#fomc #debt #inflation #stagflation
It felt like yesterday that Obama Care was the biggest concern on everyones minds.
After 1.4 Trillion in healthcare spendings in 2021 and COVID pounding on weaker baby boomer populations has driven total debt into a parabolic upwards trend.
War is festering in Ukraine, Wars get expensive.
EU is on the brink of an Energy Crisis unlike anyone has seen...
The US debt to Gold ratio looks to be topping.
The lower this ratio, the more US debt is covered by gold and generally means a rally in the price of gold.
When this ratio breaks the minor diagonal support line, the major support line will be the next target and gold will see gains not seen since the late 1970's.
Until U.S. debt loads get to more normalized levels (below 80%) and the 10Y treasury yield has a far enough spread from the short-end of the curve, the Federal Reserve's hand is almost forced in what they can do from a rate tightening perspective.
In 2008 we had a bunch of Perma bears. Gold is real money, founding fathers, banksters, who will buy the bonds, hyperinflation. Today the opposite, Govt/FED apologists, nothing is bad enough, it's transitory, worry how to spend it not how to pay for it. Wanna guess who is wrong?
For every Bill Gross that says who will buy the bonds, there is an opposite Bill...
![GFDEBTN: [STUDY] Spread between National Debt and Real GDP](https://s3.tradingview.com/h/hfUZGhP1_mid.png "[STUDY] Spread between National Debt and Real GDP")
![GFDEBTN: [STUDY] National Debt VS. Real GDP](https://s3.tradingview.com/f/fLLdIg00_mid.png "[STUDY] National Debt VS. Real GDP")
