FX Empire: Gold and Silver's Role in the Coming Debt Crisis - Will the Dollar Survive?

Article by Peter Ginelli in FX Empire

In 1976 when Jimmy Carter was elected president, the US national debt stood at $628 Billion. That’s Billion with a B, mind you. Five years later, on October 22, 1981, during President Reagan's first term, the US National Debt had crossed the $1 Trillion milestone for the first time in our history.

As the chart below shows, 37 years and 5 presidents later (George H.W. Bush, Clinton, George W Bush, Obama, Trump), our national debt has multiplied by over 28 times, standing today at over $28 Trillion.

Think about that for a minute. Each second our national debt grows by $52000 which is more than what an average American earns in an entire year. During the 30 seconds since you began reading this article, our national debt grew by over $1.5 million. 

The more disturbing fact is that each and every one of those 5 presidents made campaign promises to reduce spending and the national debt, and yet, here we are with a staggering $28 Trillion in debt, with no end in sight. 

This week President Biden is expected to sign yet another stimulus package, passed by the democratic house and senate worth $1.9 Trillion which will take our national debt to $30 trillion virtually overnight.

So why am I throwing these numbers at you? It is not to depress you or singing doom and gloom, it is merely to open your eyes as to where we are in our current fiscal mess that our so called leaders have put us in. So stop listening to politicians telling you how great things are and how we have nothing to worry about. As the old saying goes, numbers don’t lie, people, or more pointedly, politicians do.

The US Dollar's status as the global reserve currency has never been in doubt at any point since its inception more than it is today as more and more countries around the world have begun to question its viability in recent years. 

Point being is, will the dollar survive the coming debt crisis? This is no longer a matter of 'if' but 'when'?! We have long past the 'if' folks after our national debt surpassed our GDP! Now all we have to worry about is 'when', and what role will gold and silver play as we approach that inevitable outcome!?

The United States’ debt to GDP ratio currently stands at 120%. We spend nearly 20% more than we make in annual income, and it is just a matter of time before those who lend us money to survive, decide to cut us off at the knee by not lending us any additional money.

You don't have to look any further than the 1940's Germany or today's Venezuela to see what a currency collapse looks like. In both those instances, the only people who survived the crisis, were and are those who saw the coming crisis before it arrived and prepared by turning their hard-earned money to precious metals. Indeed, gold and silver have outlived every currency known to man and every currency known to man has crashed at one time or another due to irresponsible government leaders. That is a fact no one can dispute. 

In the end I will leave you with one last thought. Ask yourself this question: do you .....

To read this article in FX Empire in its entirety and view the relating chart, click here.