US National Debt possible consequences & hedges, from Asindu Drileba
There is a lot of talk about how precarious US Debt situation is. Two questions:
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What possible disaster may come out of this? I am thinking Zimbabwe type hyper inflation. What other kind of disaster can happen?
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What can retail level people do to protect themselves from this? Buy Swiss Francs? Gold & Silver? Bitcoin? What?
Larry Williams responds:
Gloom and doomers here is the chart to look at:
Bud Conrad writes:
Gold 1 year is up 24%. Silver 1 year is up 50%. The circumstances today are still very bad for the dollar. (Which is what is actually declining.)
The BRICS+ are meeting in Russia tomorrow Putin, Xi, Modi, Iran, Saudi Arabia (observer only), UAE etc.) to continue de-dollarization with non-dollar-denominated trade through non-SWIFT transactions for international Central Bank settlement. NO body is talking about this, being focused on how much the candidates will print up to bribe us for votes. The $1.1 T for interest on the $35 T of official Government Debt could rise, as the 10 year Treasury rate hit 4.2% while the Fed CUT short-term rate. Including unfunded liabilities for Social Security and Medicare would say the debt obligations are more like $200 T.
This is 10 year Treasury. Red pointer is when Fed Cut short term rate:
There is no way around avoiding the money printing required. Inflation and price rises are inevitable, as foreigners divest their $8 T of Treasury holdings, to avoid US asserting sanctions or seizing assets like the $300B of Russia holdings. They want out of US Hegemony fast, because of 14 rounds of sanctions on Russia.