Excerpt below from newsletter article received in my inbox this morning says it all:
" Hands up if you want to watch an entire political class join forces to show how stupid, corrupt, and incompetent they are.
Me neither.
But I’m afraid we’re going to be forced to watch, as the US debt ceiling ‘panic’ shoves into view this week.
If you’re unfamiliar with the backstory, here’s the quick version. The US is $30 trillion in debt. It has no realistic prospect of paying this debt down and is adding to it at a rate of trillions of dollars a year.
It’ll never pay this money back. At least, not in honest currency. To meet its obligations, it’ll have to fire up the printing press. It’ll stiff the people who lent it money by paying them back in devalued dollars.
That’s the overstory. But periodically, the US political system has to ‘decide’ whether it’ll raise its debt limit to keep the party going a little while longer.
Everyone knows that’ll happen, given how alternative it would be for the US to live within its means. Very few politicians are interested in that. They’d rather spend money to buy bombs for Ukraine, or to hand out to their voters, or to launch a war on drugs/terror/crime/the weather.
But every so often, we’re forced to watch as the whole lot of them — Republicans and Democrats — pretend to care about out-of-control borrowing and spending.
They don’t. None of them do. It’s all just drama, spectacle.
But here’s the silver lining. What the whole displaydoesdo is serve to underline just how unstable the entire financial system is, at its core. It’s a temple to unsound money.
And that’s all great news — long term — for Gold. "
