Damian White
Sr. Precious Metals Advisor
Damian White is a Sr. Precious Metals Advisor at Scottsdale Bullion & Coin. With a background in business and finance, he transitioned from real estate finance to focus on precious metals in 2016. Damian is dedicated to educating investors on the benefits of gold and silver, emphasizing the importance of wealth preservation and proper asset allocation.
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.
Americans are painfully aware of the country’s debt problem, yet political elites barely even address it. The issue is more than just incompetence; it’s recklessness.
In this week’s The Gold Spot, Scottsdale Bullion & Coin Precious Metals Advisors Damian White and John Karow explain why the government isn’t bankrupt, the root of the economic disaster, and how physical gold can offer protection for your hard-earned dollars.
Runaway Debt
The US debt just passed another grim milestone of $35 trillion for the first time. Unfortunately, given the role of modern monetary theory (MMT), the debt will run much, much higher.
This radical fiscal policy, implemented at the highest level as the Federal Reserve, embraces the notion that debt is an asset and higher taxation is a solution. This fringe monetary policy explains the government’s instinct to spend more and raise taxes no matter what.
Insolvency vs Bankruptcy
Any discussion of federal debt usually concludes with people exclaiming the government is bankrupt. That’s not technically the case. Bankruptcy occurs when liabilities exceed assets. In reality, the government has sufficient tax revenue to tackle debt.
The issue is rampant and frivolous spending. It’s more accurate to say the government is insolvent. The financial resources are available to correct the course, but the discipline isn’t.
People say the government’s bankrupt. It’s not bankrupt; it’s insolvent.–
Global Shift to Hard Assets
The MMT experiment opened shop domestically, but the toxicity has escaped to other parts of the world through relentless spending, higher taxation, and stubborn inflation. In response, countries are shifting from the dollar in favor of physical gold bullion. This process of de-dollarization is getting harder to stop as the economy shows signs of decay.
Currently, the country’s debt-to-GDP ratio is nearing all-time highs at an alarming 123%.
At the same time, the interest on federal debt is taking up an increasingly large portion of the nation’s GDP. Alongside social security spending, debt management is one of our largest spending items.
This runaway financial train is coming off the tracks as governments keep the money printers churning without meaningful reforms. The average investor will inevitably suffer the fallout.
We’re coming to the end of this era of easy money, low interest rates and it’s creating this hyperinflationary environment.–
Go For the Gold
In last week’s The Gold Spot, we explained why gold is the answer to the U.S. national debt problem. For centuries, gold has provided a strong foundation for economies as a reliable store of value with inherent worth.
“My take is that you have to put…a substantial portion of your money into gold to protect your collateral so that when we come out of the disaster…you have a financial base to get started again.”
John Karow
Precious Metals Advisor
As the pains of modern fiscal policies set in, savvy investors are protecting their hard-earned money with physical precious metals. However, you don’t have to take our word for it. Central banks are buying gold at record rates in the face of a looming debt crisis.
Getting to the Bottom of Modern Monetary Theory
For decades, investors have been pouring their life savings into an economic machine running on the false assumption that debt is unproblematic. With record-high national debt, entrenched inflation, and a weak dollar, people are starting to take notice.
The key to wealth protection is knowledge. That’s why we’ve put together a complete Modern Monetary Theory (MMT) Report, which will give you a grip on what the government is doing to your money and how to protect it best. Request a FREE COPY today!
Modern Monetary Theory, the Catalyst to the Next Financial Crisis?
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