As the president wreaks havoc on the world in hastily crafted policy (conflated with politics), written on the back of a napkin and delivered by tweet, the globe continues to drown in debt. Central bankers are deliberately destroying the value of paper money (adding trillions of dollars of debt without improving the ability of repaying or servicing that debt).
Over time the price of gold should rise.
I have spent a lot of time in recent days discussing the inconsistent behavior of our president, global debt loads and off the rails monetary policy. I now want to revert back to a discussion of the U.S.'s burgeoning deficit.
Our Federal Deficit Can No Longer Be Ignored
It is time that the Simpson-Bowles Commission be redrafted to address the runaway federal deficit. The new budget deal will add $1.7 trillion to the federal deficit between 2020 and 2029, according to the Congressional Budget Office (though it will most likely add much more).
This is $809 million more than the CBO projected last May, but what's another $1 trillion among frenemies? Overall, deficits are projected to rise by $12.2 trillion over the next decade, bringing it to at least $35 trillion (my pal John Mauldin puts the number at $40 trillion and I expect it to be higher -- and remember this is the official figure but the actual number is much higher when you include off-balance sheet items).
As we know, deficits normally decline when the economy is doing well but today they are rising sharply, with the budget in the first 10 months of the current fiscal year running...