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.
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.
Citadel founder and CEO Ken Griffin says the U.S. is being ‘irresponsible’ with national debt, and politicians are spending ‘at the expense of future generations’t.co/jTgc8WJNfS
— Global Markets Investor (@GlobalMktObserv) April 3, 2024
Bond markets are waking up to the fact that the government's only way out of this is to print more money which means more inflation. Bond yields and interest rates will go higher, and that will paralyze the economy. t.co/xLVW2pradl
— Ian Miles Cheong (@stillgray) April 4, 2024
Bloomberg Economics estimates that the US Debt-to-GDP may reach 189% when adjusted for current interest rates market pricing vs the CBO forecast of 155%.
It takes into account only debt held by the public which excludes the intragovernmental debt from the total debt figure. pic.twitter.com/wIiL1578T5
— Global Markets Investor (@GlobalMktObserv) April 3, 2024
Gold is up another 1.5% today, at all-time highs again.
Gold prices are the most overbought on a daily chart since August 2020, on a weekly chart since February 2020 (attached below), and on a monthly chart since October 2020.
This is truly remarkable. pic.twitter.com/lkXz7LiPBt
— Global Markets Investor (@GlobalMktObserv) April 3, 2024
Gold +$34 again today.
Relentless climb higher.
Gold was up 9 days in a row recently.
Thats only happened and handful of times.
1 month chart. 📈 pic.twitter.com/wKxxNyPYFe
— QE Infinity (@StealthQE4) April 3, 2024