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.
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.
Fiscal leaders are boasting about how the United States avoided a recession despite being the cause of the problem in the first place. Americans know the fundamental economic issue rests at the top, but they might not be able to explain precisely what it is.
In this week’s The Gold Spot, Scottsdale Bullion & Coin Precious Metals Advisor John Karow and Founder Eric Sepanek discuss the disastrous Modern Monetary Theory (MMT), where the US economy could be headed, and why the US dollar might collapse.
Modern Monetary Theory (MMT): What It Is & Why It Matters
Most Americans aren’t thinking about the theoretical model undergirding their economy. However, the reign of Modern Monetary Theory (MMT) is negatively impacting their financial stability daily. This experimental and controversial economic theory posits that debt doesn’t need to be controlled since governments can simply print more money and raise taxes.
Under this model, growth is largely artificial, and inflation is inevitable. It’s a convenient excuse for politicians to throw money at every problem without implementing meaningful changes and effective solutions. This isn’t some backroom conspiracy, either. Our fiscal czars publicly acknowledge their laissez-faire attitude toward debt accumulation.
Janet Yellen, the Secretary of the Treasury, has openly and consistently called debt an asset. Founding Father Alexander Hamilton agreed that debt could be leveraged advantageously but only “if it is not excessive.” The US government has evidently lost sight of that critical part which has launched the country into a staggering debt cycle.
Experts Warn of Dire Economic Future
After years of blindly following a crackpot policy, the US economy is suffering the natural consequences of fiscal irresponsibility: runaway national debt, exponential interest payments, and a debt-laden dollar. The Federal Reserve is trying to happy-talk its way through the fallout of feckless policies by pointing to a few isolated economic metrics.
The mounting pressure of these economic shocks is getting harder to ignore, even for the most ardent defenders of MMT. Experts are raising concerns about the direction of the economy and advising investors to brace for impact.
JPMorgan CEO Jamie Dimon has called the looming debt debacle the “most predictable crisis” in history, underscoring the inevitable downsides of unlimited spending. Even Jerome Powell echoed these concerns warning the US economy “is on an unsustainable fiscal path.” The Fed Chair highlighted the fact that debt is expanding faster than the economy. Experts warn that the surging debt bubble would have devastating downstream effects on national and private levels.
Unfortunately, our perverse political incentive structure encourages politicians to make expensive promises and spend exorbitant money to capture votes. They’ll be long out of office by the time the pain from their negligent fiscal decisions is felt. Predictably, the weight will fall on the average American.
US Debt to Hit $144T by 2053?!
It already strains the mind to visualize the $34 trillion debt, but every metric points to an exponential surge in borrowing, spending, and debt accumulation. The bipartisan Congressional Budget Office which provides official economic projections has estimated the national debt will reach a shocking $144 trillion by 2053. That’s the equivalent of $1 million worth of debt per household.
These alarming stats have many people concerned about a potential dollar collapse. With the BRICS nations vying for currency dominance on the world stage, the USD might be toppled before the debt crisis completes its natural crash course.
Get Informed to Stay Protected
Investors have to sift through conflicting economic reports to get the truth. While the specifics might be disagreed upon, the overwhelming chorus is that the debt crisis is pushing the economy toward a cliff.
[T]he heads of the largest financial institutions in the world all agree upon one thing: the direction of our debt is unsustainable.–
It’s not a matter of if our debt burden becomes a problem…but when. Instead of relying on the analysis of misleading politicians, smart money investors are taking it upon themselves to get to the bottom of this economic quagmire.
We’ve compiled a comprehensive Modern Monetary Theory (MMT) report covering the flawed framework that has caused the decline of the US economy. Request your FREE copy today to help you take control of your financial stability.
Modern Monetary Theory, the Catalyst to the Next Financial Crisis?
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