New closing HIGH, page-25

The USA fiscal position is a mess - expected deficit in FY 2024 is about $U2tr or 40% of revenue in a year of a good expected economic growth. By the end of 2024 the interest on debt is expected to be running at a running rate of $US1.3tr or about 26% of revenue, more than most or all other forms of budget expenses.

Image how bad the USA deficit will be in a recession!

The Fed is caught in a trap - it needs to reduce its massive balance sheet of bonds and inflict high interest rates to reduce inflation but the USA can’t afford high interest rates. Japan, China and other overseas counties have already reduced their holding of US bonds a lot and probably will reduce them much more. The Fed is competing against the massive fiscal stimulus from the massive budget deficit. Who is going to buy USA bonds in the future other than the Fed?

Then there is the fragile state of USA banks ( see SMH article below).

The following articles provide an interesting read and will assist one’s understanding of how bad financially the USA’s financial position is.

Why do I invest in gold stocks - it’s pretty obvious.


https://bpd-space.nyc3.cdn.digitaloceanspaces.com/scp/What%20Me%20Worry.pdf

https://bpd-space.nyc3.cdn.digitaloceanspaces.com/scp/Fed%20Cred.pdf

https://bpd-space.nyc3.cdn.digitaloceanspaces.com/scp/Hard%20or%20Soft.pdf

https://sprott.com/insights/sprott-gold-report-gold-mining-stocks-a-clear-and-compelling-investment-case/?utm_source=Insights&utm_medium=Email&utm_campaign=Hathaway-q4-2023-gold&_cldee=L9HOZz1_aXdzL3bxUAo19XH63p_HoHZ_EO8GLzDROOHIyUXm7Rs9wvP9sYIYMHrF&recipientid=lead-32adb0f99349ee11be6f000d3ae99267-93fc5403ca994deaa619d2b49a8c6b5b&esid=f958008f-68b1-ee11-a568-000d3a846077