How the Growing National Debt Threatens Every American

government spending

Talks of America slipping into another recession mainly due to out-of-control money printing, which is causing an ever-inflating national debt, have been at the front of many minds of Americans, not just financial experts.

Today, we’re not here to argue if and when that will happen; all we’re saying is that there are things happening that you want to keep an eye on.

The idea that America’s failing monetary system will cause the whole nation to collapse can be a bit overwhelming to try and process. That’s where some people completely tune out, and who could blame them?

The truth is that even if America enters into another recession soon, the catalyst and conditions may be different than what most are expecting them to be.

Maya MacGuineas, president of the Committee for a Responsible Federal Budget, explains her view on this in a recent Bloomberg interview:

“What’s not going to be the problem is that we default, because we do borrow in our own currency and we can print. But the problem is all the collateral damage that comes from that: the economic risks of higher interest rates, inflation, of losing our enviable currency role in the global economy, the geopolitical vulnerabilities that come with depending on other nations to finance our debt, including nations like China that we aren’t completely aligned with.”

“The biggest issue is that this leaves a younger generation — who already will have much larger interest payments and a huge debt load — even less ability to borrow for their own priorities because we didn’t want to pay for things.”

The national debt continues to grow and exceed new highs so frequently that it’s become expected.

With a current debt exceeding $28 trillion, it’s nothing to take lightly.

The Committee for a Responsible Federal Budget estimates our debt hitting a record 110% of GDP at the end of fiscal 2021.

What has been seen cannot be unseen and that is that America’s financial problems are on an unjustifiable path and headed to uncharted territory.

MacGuineas adds:

“We are, in fact, on the verge of setting a record in this country where our debt to GDP will be the highest it’s ever been. The last time that it was this high was right after World War II when we’d fought a World War.”

Not to mention that our middle class is eroding. Soon, we may only have the upper and lower class brackets.

Just a few decades ago, in 1979, the American middle class made up 46% of incomes.

In 2014, that number declined to 26%.

That was just seven years ago. And sadly, we have yet to see the full impact of the pandemic and what it will cause on the shrinking middle class.

Precious metals have been around for thousands of years – and metals such as gold are historically known to be a safe haven in times of economic and financial downturn for a reason.

There’s never been a better time to protect your wealth than now. Call American Hartford Gold today at 800-462-0071; we’re here to help.

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