RE: Dsrt7 Dec 2025 00:14
CarefreeToday 10:34
1st who made the debt - The Fed
2nd who's making 39b that was not there before. - Pumped into economy. As a function of “value”, a little value is taken from every USD holder by dilution, and then assuming similar levels of goods and services, prices inflate to fill the value gap.
3rd this is what other presidents was giving away.. - this is not English - but yes, O think your point is that all Presidents have created more or less debt… correct.
4th us economy growing - 2025 Growth 2%, inflation 3%, so in real terms, negative growth…
5th debt being paid off slowly - sadly a lot slower than it is being accumulated - current trajectory is widely agreed to be unsustainable…. There are three choices - Somehow they revalue the currency (print more), grow the economy faster than inflation and interest on debt (very unlikely), They default on their Debt obligations (This would be really bad and is extraordinarily unlikely), or they stop spending so much (Some of this is probably needed, highly unlikely enough will be done).
So we probably see even more inflation (printing), which maybe leads to stagflation - I don’t think we see catastrophic hyperinflation, but a decrease in living standards due to a reduction in purchasing power, and further polarisation of the wealth gap as asset prices (and everything else) continue to inflate.
The thing that probably saves the US is that this is a global phenomenon, so everyone is struggling with it at the same time.
All while the petro-dollar and world reserve currency comes under pressure from those who are financing the US as they export currency and then gradually devalue it - using those they gave it to in return for their resources to finance their largesse…
Gold, in an inflationary environment does well as it helps maintain purchasing power.
What we’re concurrently seeing is that the manipulation of the gold spot price in paper markets is coming under pressure as people demand delivery, and therefore the actually deliverable (physical) gold goes up in value. This demand is huge and growing.
While we dot the i’s and cross the t’s our asset value is appreciating, such that the eventual pay off will reward our patience handsomely.
Here’s to a positive week ahead.