gold breaks out, page-148

Dan, no-one saying there are no problems... Timber merely pointed out that the US Govt has no problem servicing its debt and backed that up with a chart showing that interest costs relative to GDP has reduced from 30% to 15% over the period that gold has been in a bull market (that's no coincidence).

All the future debt will continue to be inflated away. The US Federal Govt can borrow long-term at <2% (below the inflation rate) then repay their loan many years later with significantly devalued currency in terms of notional GDP.

This is exactly what's been happening in the past 10 years, negative real interest rates for the most part easing their debt service and driving gold higher. Provided notional GDP keeps rising with inflation, and interest rates remain low, I think Timber will be proven right.