by Gary Christenson, Deviant Investor:
We all know the debt load in the US economy is horrendous and unsustainable. The US government runs deficits of approximately $1 Trillion per year, even with interest rates at historical lows. Current official national debt exceeds $19 trillion, of which $13.9 trillion is public debt. Unfunded liabilities are much larger. Even a 7% average interest rate would require nearly $1 trillion per year for interest only debt service, thereby increasing national debt even more rapidly.
National debt has increased exponentially for the past 50 years. Expect the exponential increase to continue and accelerate, even with historically low interest rates.
What if we priced national debt in “real money” – actual gold instead of the digital and paper stuff that can be created at the whim of a central banker?
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