January 6, 2025
Our governmental debt is getting so big that I don’t think we’ll be able to grow our way out of this situation.
While economic growth as a sole solution to our debt problem always seemed like a long shot, it’s now as if growth won’t be able to do much of anything to help.
For example, federal debt is now over $36 trillion and growing. More than $16 trillion of it is due to mature in the next four years. That leaves only a few options.
One is to default on the debt. That’s highly unlikely.
Another is to drastically slash or eliminate programs like Social Security and Medicare. Again, this is unlikely, perhaps even bordering on never going to happen.
A third option is selling huge assets. Would we sell Yellowstone to foreign investors? This is another highly improbable outcome.
So, the fourth option is the same one bankrupt governments have relied on for centuries: to increase the money supply. In other words, inflation.
Which one do you think our current political leaders will choose?
Financial author Bill Bonner says the U.S. government must inflate or die. Printing trillions of dollars is the only path forward for our debt.
As strange as it sounds, this is precisely what the federal establishment wants.
Printing money is the lifeblood of our political system. It may be the only thing both sides of the aisle wholeheartedly agree on. This is why I said it didn’t really matter who won the election from a financial perspective.