Washington to regain fiscal sanity in emergency meeting?
Would you believe..?
DEVELOPING: Officials in Washington have called an emergency meeting to deal with decades of fiscal irresponsibility after members of congress were presented with this infographic on the enormity of the US debt in a congressional hearing.
All 7 governors of the Federal Reserve Board attended, as well as high ranking officials at the Treasury Department to consult with the Appropriations Committee to determine where cuts could be made to get the United States back on sound financial footing and save the value and integrity of the US dollar.
This occurred after several ratings agencies saw the same data and were reported to be contemplating further credit ratings cuts for the United States.
One Federal Reserve governor said on condition of anonymity, "After reviewing this information and really coming to terms with how unsustainable this is, I am stunned," he continued, wiping beads of sweat from his brow, "How could we have let this get so out of hand? We absolutely must course correct and stop this fiscal runaway train. God help us all."
Also in attendance was the Chairman of the Peter G Peterson Foundation brought in to consult and advise on solutions. "I was really pleased to find that finally Congress is listening. The members all took copious notes and asked intelligent questions and really seemed to take all of our solutions to heart. Finally. After more than a decade of screaming from the rooftops, this has been a really gratifying day for all of us at the Foundation. There will be some difficult choices ahead and some pain as we readjust to fiscal sanity, but I feel confident that we've turned a corner and long term, our nation will thrive again. This is a great day for America."
The Appropriations Committee will present a revised budget to Congress. All members have been briefed on the situation and are expected to unanimously approve the new budget in light of these serious fiscal realities.
The Biden Administration is also offering its full support to these efforts. President Biden, in a rare unifying moment, pledged to quickly sign whatever Congress sends to his desk. Government spending limits are expected to go into immediate effect.
JUST KIDDING.
The only thing real about the above is the infographic. THAT is true. But no one in Washington called any emergency meetings. No one is cutting spending. No one is asking the Peter G. Peterson Foundation for advice on how to fix it.
If you found any or all of the above laughable and ridiculous, you just might need some gold in your portfolio.
Because either something like the scenario presented above happens SOON or we are possibly approaching some kind of fiscal cliff. Take another hard look at this graphic. What they are doing to our money is NOT sustainable and it will very likely continue to erode the real purchasing power of the dollar.
On the other hand, look at the value of gold in the graph. With a few temporary wobbles, it tracks upward over time remarkably well, making it potentially a great defensive financial move should the trajectory of our debt continue upward.
We can't say for sure these trends will continue in the future. But what do you think? Will Washington keep spending like drunken sailors? (apologies to drunken sailors...) And will the price of gold continue to track upwards along with the debt? Read the full analysis over at Visual Capitalist. And if you're ready to lock in your price on gold and silver, give us a call!