By: Stansberry Research
“…the size of our banking system has exploded. By 1990, the total debt-to-GDP ratio in the U.S. had grown substantially to 2.6 times GDP. It reached 3.6 times by 2007 – even before the financial crisis. Today, total debt in the United States stands at $56 trillion – 3.8 times GDP.
That equals $180,000 in debt for every man, woman, and child in the United States. That’s nearly $700,000 of debt per family in the United States.
Real Time U.S. Debt Clock (See Total Debt Per Citizen- Line 6)
The interest on these debts is more than $3.5 trillion per year. To give you some idea of how much money we’re spending on interest alone, just consider… the total budget of the U.S. federal government is also $3.5 trillion. Again, $3.5 trillion just covers the interest.
Click here to check the current gold and silver spot prices….
All Things Considered – John’s Commentary
Do not be in denial about the Federal Reserve and Treasury Department’s inability to rescue the dollar, and by extension you and I. As individuals, if we earn as much as we owe and we continue to borrow – we eventually will have to declare bankruptcy. It is the same with the dollar as we know it – it will eventually default.
There is no silver bullet- there are no rabbits to pull out of hats – there is only the prolonging of the inevitable.
Action to take: The precious metals prices may seem high in nominal terms. This is only because the currency in which they are valued (dollars, Euro’s and other fiat currencies) are becoming worth less.
Start to buy or continue to buy – what other options do you have that you can have confidence in?
Quote of the day: “As fewer and fewer people have confidence in paper as a store of value, the price of gold will continue to rise.” – Jerome F. Smith
