Written by Bryan Lutz, Editor at Dollarcollapse.com:
Here are three Sunday Morning thoughts…
Sometimes these thoughts are on the economy, life, or hard assets.
If they’re helpful or hopeful to you, that’s great… Sometimes it just comes down to reality. That’s what I’m interested in…
So, here we go.
Here are three Sunday morning thoughts for you:
1. There are two ways to look at fiscal deficits: From a bird’s eye view and then at a closer level. But, no matter what way you look at it, deficit spending seems more like a rising tide.
Over the last two months, federal deficit spending has been growing.
It’s not at its highest, yet.
That happened in 2020 and 2021, but it is growing.
The important reason is why.
And one major reason is:
Someone has to service the debt.
Someone has to pay for the growing interest on national debt.
No one yet knows who.
So it’s a threatening situation to say the least.
In the chart below, you can see downward trend from 2013 onward.
Over the last two months, federal deficit spending has been growing.
It’s not at its highest, yet.
That happened in 2020 and 2021, but it is growing.
The important reason is why.
And one major reason is:
Someone has to service the debt.
Someone has to pay for the growing interest on national debt.
No one yet knows who.
So it’s a threatening situation to say the least.
In the chart below, you can see downward trend from 2013 onward.
But at a more granular level, you see the micro trend.
Deficit spending is increasing each month with very little change in the trend line.
It seems more like a slow, rising tide to me.
2. Speaking of changing our perspective… If you’ve been a seasonal trader, or even day-trader of gold and silver stocks, then you may not need to anymore. Gold and silver stocks are entering a time when decades may get wrapped into days.
Here’s what stock charts look like from days, to years, to decades.
The commodity markets, specifically gold and silver are about to look like the decade chart, but within a few months.
It may even feel like squeezing the last 25 years of gold action into just a few years.
You may not have been around long enough to experience this for yourself, but if you bought gold 25 years ago and held, then you would’ve beat the S&P 500.\\
Sooner than later, more fiat money is going to be printed and pumped into the USD supply, much, much faster than over the last 25 years.
Decades will become months…
Even days, at some point soon.
3. With bond yields rising across the Western world and even in China, do you think Central Banks know what’s happening?
Central Banks know what’s going on.
Fiat currencies are risky…
And bond yields curves are on the rise.
If you measure fiat value in gold, it’s falling hard.
Since 2020, the trendline is going down steeper, and steeper.
Even though the US Treasury may not make it seem like the gold in Fort Knox is important, they’re still holding their gold.
So, Central Banks are buying more gold…
And demand points to the highest it’s been in the last five years.
