Not all milestones are reasons for celebration. In fact, some milestones are cause for profound worry.
And our nation has just hit one of those.
I regret to inform you that our national debt has just topped 30 trillion dollars for the first time. It’s a number so staggering it doesn’t even seem real.
Unfortunately, it’s not a fantasy figure. It’s all too real. And the consequences of the United States falling ever-deeper into this huge debt pit could be all too real, as well. We’re going to talk more about those consequences shortly. But first, some context…
Retirement savers are forced to confront a host of challenges today. One of the most prominent is an inflation rate sitting at a near-40-year-high of 7%. But the threat to both national and personal economic stability posed by an enormous national debt that keeps climbing higher could be much bigger.
As you read this article, think about your own situation. I suggest it’s high time for most retirement savers to at least consider implementing strategies designed to help hedge their hard-earned nest eggs against these challenges – strategies that could include adding physical gold and silver to their holdings.
The Wall Street Journal notes the total public debt outstanding jumped 7 trillion dollars from late January 2020, which is just prior to the pandemic. And a good portion of that increase is attributable to COVID-related relief spending. But expert observers are quick to note that a longstanding indifference to fiscal soundness is a foundational reason for the debt explosion.
“This [30 trillion dollars] is a jaw-dropping number that is a real cause for concern,” said Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget. “It is the result of both borrowing for really important crises, most notably the Covid pandemic, but also trillions and trillions of borrowing for no reason other than politicians have stopped being willing to pay the bills.”
The Congressional Budget Office (CBO) says the debt will be 200% of GDP by 2051. And let’s not forget the role that interest on the debt plays in making the problem worse.
According to a recent article on the debt at USA Today, net interest costs on the debt now are running at around 1 billion dollars per day. The same article informs us that breaks down to about 2,600 dollars for every American household. The piece further notes that by year 2051, interest on the debt will be so large that almost half of all federal revenues will have to be allocated to servicing it.
It also is projected that by 2051 interest alone on the debt will represent nearly 10% of gross domestic product (GDP). For perspective, USA Today notes that national debt interest has never been much more than 3% of GDP. And with interest rates poised to rise, the cost to service the debt could become considerably more expensive.
According to the CBO, the risks that accompany the exploding national debt are many – and significant. They include serious fiscal crises, such as that which could arise if investors lose confidence in the government’s ability to service and repay its debt. There’s also the risk our government would be significantly hampered in responding to economic and geopolitical threats due to an inability to engage in deficit spending. And, then, of course, there’s the risk of profound dollar instability.
Investment in precious metals involves risk and is not suitable for all investors. Augusta Precious Metals recommends that you consult your own financial or investment advisors prior to investing in precious metals. Augusta is not qualified and does not offer financial, investment, legal, or tax advice. This site and the information provided by Augusta throughout its sales process is general in nature and is not tailored to any specific person, their circumstances, or their financial goals.
Opinions offered by Augusta Precious Metals are its own. Additionally, while Augusta attempts to provide factually accurate information, information presented by Augusta may turn out to be inaccurate or incomplete. You should conduct your own independent verification of any facts or opinions presented prior to making any investment.
All decisions regarding the purchase or sale of precious metals are your own, and should only be made after considering your investment objectives, risk tolerance, and level of experience. Augusta Precious Metals cannot guarantee, assure, or promise future market movement, prices, or profits. Past performance does not guarantee future results. Any investment in precious metals is speculative and could result in significant financial losses.
* Past customers received silver coins as a thank-you for reviews. Mark Levin and Joe Montana are paid ambassadors for Augusta.
We have thousands of satisfied customers. Please give us the opportunity to make you one of them.