National Debt Could Soon Exceed Size of Entire Economy

national debt

A new president may be in office but Americans are still faced with the same, if not more extreme economic and financial uncertainty.

With Joe Biden being sworn in as the 46th president of the United States, it would be an understatement to say that there are differences in opinions on his leadership trajectory.

One thing is for sure, gold lovers across the board couldn’t be happier as gold shot up more than 1% on inauguration day. The happiness felt by gold investors stems from the belief (with proof) that America as a nation could be headed for much more turbulent times.

For instance, and which isn’t any new news for us, is the increase in money printing and horrific increase in our country’s national debt.

Truth be told, our national debt is set to exceed the size of our entire economy this year.

We are currently sitting at around $28 trillion– which has almost been guaranteed to increase by at least $1.9 trillion with Biden’s new stimulus proposal.

Last year alone, we added $4.5 trillion to our balance.

Do we have a never-ending, total running balance on our debt? Although it may seem as though, unfortunately not since nearly 30% of our debt is owned by other countries.

They will want their money at some point or another.

If these countries decide to halt the buying of our bonds and debt, we will then have to rely on the Fed to do so by printing new money out of thin air.

I would be a lose-lose for Americans and all benefit for the Fed. They are essentially buying our debt with fake money and then charging us for it.

In an interview with Kitco News, Ole Hansen, head of commodity strategy at Saxo Bank, said he believes it’s only a matter of time before prices start trending higher as the U.S. guides the world into further government stimulus measures.

He added, “It’s fairly simple. The U.S. cannot afford higher interest rates. At some point, yields will rise too high, and the Federal Reserve will have to step in. This will cause real yields to collapse and the U.S. dollar to fall, and that is when you will have the perfect storm for gold.”

Nothing is certain right now except that our national debt will increase. Are you financially prepared?

Learn how American Hartford Gold is helping Americans protect their assets by calling 800-462-0071.

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