Debt Binging: Part Two
Now That We’ve Passed $22 Trillion…
At $22 trillion of debt, the benchmark the US government hit just days ago, we’re up in the nose-bleed section somewhere.
Just how bad is it? In an earlier post we pointed out that the trillion dollar debt the US added in just the last eleven months was more than the Republic accumulated through the Revolutionary War, the War of 1812, the Louisiana purchase and Seward’s Folly, fighting the Civil War, the Spanish American War, two world wars, Korea and Vietnam, and putting a man on the moon.
The US did all that without accumulating a national debt of $1 trillion.
Now we add a trillion dollars of debt in less than a year.
The National Post, a Canadian newspaper, has done Americans a service with piece called “The utterly unbelievable scale of US debt right now.”
It even gives you a glimpse at just how inexpensive gold is right now with respect to the unpayable US debt. We’ll get to that in a minute.
But first, a few bullet points.
- The US debt is higher than the combined market value of all the Fortune 500 companies combined.
- Just with the money the US spends on interest, it could run Canada or Mexico.
- Debt from just one Trump term could pay for another World War II.
- This is all happening, not during a depression or even a recession, but during “good times.”
Here’s the part the puts the price of gold into perspective.
The article points out that at today’s price, just the debt accumulated during the Obama years would be enough to buy all the gold that has ever been mined in history. “Every nugget pulled out of the Klondike, every ounce plundered from the Aztecs, every gold bar leach-mined out of Australia: it all adds up to about 190,040 tons, or 6.7 billion ounces. At the current price of about $1300, the world’s gold hoard would be just enough to pay off the US debt accumulated between 2009 and 2016.”
The US has a lot of irredeemable dollar debt out there. Let me put it another way. Think of an inverted pyramid, an enormous mass of debt all balancing precariously on a teeny-tiny tip of gold, which is real liquidity.
Talk about unstable!
Today’s gold price in so low in comparison to the debt mass resting on it, that it is easy to see how a world-wide awakening to this unsustainable debt binge will create a gold rush of unprecedented proportions.
Call your professional RME gold broker to find out how to beat the rush.
The US is in denial. Its debt binging is obviously a chronic condition like alcoholism or drug addiction. It obviously needs help.
Maybe Canada could stage an intervention.
