Eric Sepanek
SBC Founder
Eric Sepanek is the founder of Scottsdale Bullion & Coin, established in 2011. With extensive experience in the precious metals industry, he is dedicated to educating Americans on the wealth preservation power of gold and silver.
John Karow
Precious Metals Advisor
John Karow is an experienced lawyer and Precious Metals Advisor at Scottsdale Bullion & Coin. He holds degrees from Lehigh University, the University of Missouri, Cornell University, and St. John’s University School of Law. John is a knowledgeable authority in precious metals, dedicated to helping clients navigate economic cycles and gold and silver investments.
To infinity and beyond. That’s precisely where the national debt is headed with the government’s reckless spending habits. While the mainstream media attempts to distract with meaningless news stories, the American people can’t ignore the financial fallout.
In this week’s The Gold Spot, Scottsdale Bullion & Coin Founder Eric Sepanek and Precious Metals Advisor John Karow explain the frightening debt bubble, the experimental fiscal policy at play, and who the Federal Reserve is attempting to blame.
US Debt Eyes New Record
The national debt is closing in on a fresh record of $35 trillion – a glaring indictment of the government’s failure to reverse course. In 2014, US debt was $17.8 trillion, representing nearly a 100% increase within a decade. However, that’s not even the worst of it. The US government added $7 trillion between 2020 and 2022 – an amount that wasn’t initially reached until 215 years after the country’s founding.
The hamster wheel of government spending and printing isn’t slowing down. Every 90 days, the government is tacking on an extra $1 trillion. At this pace, total outstanding US national debt will hit $56 trillion over the next decade. The situation is spiraling out of control, and the government is barely paying lip service to this incoming catastrophe.
The Modern Monetary Theory (MMT) Mindset
One look at these numbers would be enough for the average American to determine we’re on an unsustainable financial path. It’s a checkbook that can’t be balanced as spending outpaces income. It’s really as simple as that…unless you practice Modern Monetary Theory (MMT).
Under this controversial framework, debt is viewed as an asset rather than a liability.
Furthermore, this financial rubric doesn’t outline any negatives for unlimited deficit spending and debt accumulation. It views taxes as the cure-all for economic woes or budget imbalances.
Sound familiar? It should! This is the playbook our financial elites have been running for decades. The buck (literally and metaphorically) keeps getting passed onto the next generation, driving the debt higher and setting up more damage.
“I don't see where it's going to end. I don't see how they're going to get control of it. We're heading for a big crash.”
John Karow
Precious Metals Advisor
The Fed Blames Taxpayers
In an interview earlier this week, Treasury Secretary Janet Yellen blamed the country’s dire financial straits on former President Donald Trump’s tax cuts. Yellen said the Tax Cuts and Job Act was “responsible for many of the problems that we face now with our fiscal trajectory.”
Clearly, the Fed is willing to point fingers at the American people while completely ignoring their responsibility as fiscal leaders. Even looking past this blame game, the numbers simply don’t support the premise that taxes alone can keep the United States afloat in this rising sea of debt.
The US population is roughly 336 million, but only ~129 million pay income taxes. With income taxes accounting for around 52% of federal government revenue in 2022, that means around 38% of Americans shoulder over half of the entire nation’s tax burden. Also, you should subtract the 23 million public employees when looking at federal tax revenue. Their taxes are effectively recycled from taxpayer-funded salaries.
Debt Distractions and Deflections
The 24-hour news cycle should be consumed with the looming debt bubble, out-of-control federal spending, and their disastrous ramifications. Predictably, the mainstream media prefers to focus on dubious trials against former President Donald Trump, the upcoming presidential debate, and other comparatively meaningless events.
Related video: 2024 Election Impact: What Will Happen to Gold Prices?
Every story big media chooses to cover which barely impacts the American people is nothing more than a distraction from the real problems affecting the country. The people who should reveal the government’s incompetence choose to cover for the elites.
MMT: From Theory to Practice
For a long time, any mentions of MMT were brushed aside as unfounded or entirely conspiratorial. Today, people are waking up to this harsh reality. The government is sleepwalking into history’s biggest debt crisis without any attempt to correct it.
Every day, more investors turn away from dollar-linked assets in favor of physical assets like gold bars and coins. This puts financial control back in the hands of the American people while painting an uncertain future of paper money.
If you’re interested to learn more about the fiscal theory behind the national debt, check out our Modern Monetary Exposure Report. This comprehensive report will help clarify this economic debacle. Claim your FREE copy today!
Modern Monetary Theory, the Catalyst to the Next Financial Crisis?
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