The rising debt/GDP ratios in both Europe and the US suggest an impending era of financial repression, similar to what Japan has experienced. Axios notes that it would require substantial measures, equivalent to $2,400 per American per year, in either spending cuts or tax increases to stabilize the national debt. Meanwhile, gold is reaching new all-time highs against major currencies, indicating a potential surge in gold to USD.
Spoiler, with debt/GDP ratios going up in both Europe and the US, sooner or later both of them will follow Japanese style financial repression. Enjoy these positive real rates as long as they last. pic.twitter.com/TtE8CsmyAI
— Michael A. Arouet (@MichaelAArouet) November 20, 2023
It would take spending cuts or tax increases equivalent to $2,400 per American per year to stabilize the national debt, per Axios.
— unusual_whales (@unusual_whales) November 20, 2023
Gold vs other major currencies:
New all-time-highs across the board
It’s not long before gold to USD follows suit pic.twitter.com/XqYTNbjQGJ
— Bravos Research (@bravosresearch) November 20, 2023
We have not seen anything yet pic.twitter.com/8fvwL8brhT
— Michael A. Arouet (@MichaelAArouet) November 20, 2023