Well Timber it only gets worse in 2011-14 as you know.
Current Federal debt stands I think at 17.9Trln & growing at around 500Bln pa.
Why is this relevant to gold, really do you need to ask?
Or are you someone that thinks US debt can just keep going in one direction & it will have no impact on the likes of their sovereign credit rating & their ability to pay interest once rates rise?
Obama has slashed the budget in one area in particular, military spending. If indeed the Republicans do get back in power in two years, can you see this being the case? Spending will no doubt increase.
Under that scenario it wouldn't be long before US Federal debt clocks in at $20Tln+
The last time US Debt to GDP ratios were anywhere near this high was WWII & last I looked the world wasn't at war.
For every tax payer in the US the Federal debt stands at $157k!
And that's not including a lot of other future liabilities that remain unfunded.
