Given the two largest consumers of Debt are the United States Consumer and Federal Government, if the consumer begins to retrench, the Federal Government must pick up the slack in order to maintain the current state of affairs. This, of course, means more Debt issuance at the United States Treasury and debasement of the dollar. In an election year, it will be immensely difficult to lift the ceiling on budget deficits. Instead, the Federal Reserve will begin monetizing this debt. This may not occur on the light of day as the Fed’s own balance sheet is swelling due to its purchase of Tier One Debt from Institutions in order to maintain Liquidity.
This will begin to occur at a time when Total Credit Market Debt (including Unfunded Liabilities) exceeds $55 billion. The egregious amount of additional credit expansion required will be unprecedented in History. Given the fact that Total Credit Market Debt exceeds 50% of Gross Domestic Product, the United States faces a day of reckoning in absolute terms that will have profound effects on the balance of the Financial Globe.
In a purely historical contest, there has been no better time to own physical Precious Metals. Secure yours now. Our creditors are doing so and spending Federal Reserve Notes to do so.
Lead, follow or be left behind as the disinvestment in Dollar denominated assets is picking up momentum and should begin to accelerate dramatically over the course of this year. No Fiat currency will find the faith required when the World’s Reserve is abandoned.
The Market will have the final word and not the Global Interventionists.
