Bond markets react as government prints money, fueling inflation, pushing yields higher, paralyzing economy… ‘U.S. is being ‘irresponsible’ with national debt’

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As the United States hurtles towards a fiscal precipice, the specter of an irredeemable debt crisis looms large, pushing gold to unprecedented heights. Citadel founder and CEO Ken Griffin sounds the alarm, decrying the nation’s “irresponsible” handling of its ballooning national debt, a reckless spree that mortgages the future of generations to come.

With a staggering $34.6 trillion debt burden and annual interest costs exceeding $1 trillion, America finds itself ensnared in a fiscal quagmire with no discernible exit strategy. Inflation, far from abating, runs rampant, exacerbated by the wanton weaponization of the dollar abroad. It’s little wonder that gold and bitcoin continue to smash through record highs, buoyed by the sinking confidence in traditional fiat currencies.

Bond markets awaken to a sobering reality: the government’s only recourse lies in the perilous path of printing more money, a move destined to fuel inflationary pressures and drive bond yields and interest rates to dizzying heights. Bloomberg Economics’ grim forecast projects a staggering Debt-to-GDP ratio of 189%, far surpassing the Congressional Budget Office’s more conservative estimate of 155%.

Yet, this figure merely scratches the surface, accounting solely for debt held by the public and conveniently excluding intragovernmental debt from the equation. Gold’s meteoric rise underscores the growing anxiety pervading financial markets, with prices scaling dizzying heights not witnessed since the dark days of 2020.

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As gold charts its relentless ascent, the signs of overbought conditions flash ominously across daily, weekly, and monthly charts—a stark reminder of the precariousness of the current financial landscape. With each passing day, America teeters on the brink, grappling with a debt crisis that threatens to unravel the very fabric of its economy.

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