“Inflate or Die,” Peak Silver and Gold’s Coming Breakout
The comments above & below is an edited and abridged synopsis of an article by Gary Christenson
Fiat currencies are created as debt. Inflating currency supply means increasing total debt. Global debt exceeds $200 trillion. Total US debt securities exceed $40 trillion. Official US government debt is $20 trillion and has increased exponentially for over a century. Unfunded liabilities are 5 to 10 times higher.
Debt and M3 rise rapidly as the economy and population increase. The currency supply is continually inflated, resulting in much higher prices for most goods and services. The US dollar has been devalued by more than 90% since the 1930s.
Wars are expensive. Since government expenses have exceeded revenues for decades, new and expanded wars will require larger increases in debt and currency in circulation. Consumer prices will rise even more.
National debt, currently $20 trillion, has doubled every 8 to 9 years for a century. If it doubles as it has historically, national debt could reach $160 trillion in 24 – 27 years.
If interest rates average 3% and national debt grows to $160 trillion, then the annual interest expense in the 2040 decade will be approximately $5 trillion.
Extreme measures may be used to extend the borrow-and-spend paradigm as tax revenues stagnate, and confidence in fiat currencies sinks toward the current level of confidence in Congress. How much time will negative interest rates, retirement funds appropriation, a war on cash, more QE and printing, more wars and martial law buy?
Governments will choose inflation. Consumer prices will increase as debt and currency in circulation rise. Wars will continue and expand, which will require additional currency inflation and the devaluation of fiat dollars.
Change will eventually be necessary. Governments and central bankers are digging us into an economic hole by increasing debt on a massive scale. Gold and silver bullion will protect purchasing power better than the alternatives.