Record setting foreign and domestic debt threatens the economy
The negative effect of government debt on your retirement
Precious metals are a means to counter instability
The Ticking Chinese Debt Bomb
Evergrande, China’s largest real estate developer, is the world’s most indebted developer. They are on the brink of collapse. Experts say the failure of the Chinese property giant could trigger the biggest financial crisis since 2008.
“Far too many Americans have retirement accounts, their pensions, and college funds invested in risky Chinese stocks without even knowing it,” Senator Rubio said. “The Biden Administration needs to recognize that while Wall Street may want to make friends in Beijing, the Chinese Communist Party will gladly enrich itself by wiping out Americans’ savings.”
President Trump created the Phase One trade agreement with China to make sure they purchase American goods. Biden let that part of the agreement slide. But the Democrats still support American financial companies buying bad Chinese loans. In the past, Beijing had to bail out struggling Chinese banks with Chinese money. Under this new accord, American savings can do it. We are financing their failures!
The Danger of US Debt
In a frightening milestone, the Treasury Department announced that the total public debt is over $30 trillion. The national debt surged by about $7 trillion since the beginning of the Biden administration alone.
Meanwhile, the Federal Reserve is shifting into inflation-fighting mode. They announced their first series of rate hikes since 2015. Higher borrowing costs will only make it harder to finance that mountain of debt. Interest costs alone could be more than $5 trillion over the next 10 years. That amounts to nearly half of all federal revenue by 2051.
There is $8 trillion owed to foreign investors that will need to be paid back, with interest. “That means American taxpayers will be paying for the retirement of the people in China and Japan, who are our creditors,” said David Kelly, chief global strategist at JPMorgan Asset Management.
The Biden administration has made virtually no attempt to address the national debt.
“We’re on an unsustainable path,” Fed Chairman Powell told lawmakers last month. The government borrowed trillions for crises like the Covid pandemic.
What It Means For Your Retirement
The Biden administration is fueling the debt crisis. They are paying for the US government with even more debt, at greater interest rates – owed to China.
As it currently stands, the federal government is not expected to be able to pay for Medicare and Social Security. They may have to cut benefits and raise taxes.
Runaway debt is launching a vicious supercycle. Interest rates get raised, the economy shrinks, and taxes rise. IRA funds heavily vested in defaulting countries would face massive loses while any saved cash loses its value to inflation.
There are few safe harbors in this debt cyclone. However, gold is one of the best. Known for retaining value in turbulent times, gold is a proven way to protect your retirement.
Don’t let them steal your hard-earned retirement to bail out reckless foreign governments.
Call now to learn how gold is the smart choice to keep your money safe.
Call 800-462-0071 or request your free information guide.