The debt ceiling has been suspended until 2025. Meanwhile, government spending continues to grow while high interest rates inflate the cost of repayment.
According to the nonpartisan Committee for a Responsible Federal Budget, the federal government’s budget deficit has grown to $2.1 trillion, with federal spending up 11%, while tax revenue has fallen by 6%.
“We aren’t going to cut expenses in the government. We aren’t going to increase taxes that much. We aren’t going to go to a bailout with the [International Monetary Fund]—that’s not realistic. And we’re not going to default. The only alternative is to inflate [our] way out.”
—Carlyle Group co-chairman David Rubenstein, July 20, 2023
How will this level of government spending impact consumer portfolios over the long term, and what can be done to shield portfolios from the effects of increased government spending?
Click on the video link below for exclusive insights on this topic from Philip N. Diehl, 35th Director of the United States Mint and President of U.S. Money Reserve.
Related headlines from around the web:
- The New York Times: “U.S. National Debt Tops $32 Trillion for First Time”
- Business Insider: “The debt crisis Ray Dalio warned of may already be happening as U.S. borrowings surge by $1 trillion in just weeks”
- Reuters: “Gold hits 2-month high as dollar struggles on Fed pause views”
Don’t wait for another economic downturn—protect your portfolio with precious metals today.
Gold has historically been used as a hedge against economic uncertainty and market turbulence. As paper-based assets like stocks continue to experience volatility and inflation continues to deflate the dollar’s purchasing power, now may be the perfect time to add wealth protection to your portfolio in the form of physical gold.
Watch U.S. Money Reserve’s “Market Insider” each week for more economic insights. Nothing herein should be considered as portfolio or retirement advice as U.S. Money Reserve (“USMR”) cannot and does not offer financial advice. Clients should consult a financial advisor for specific advice. This commentary is provided by USMR for informational purposes only and is provided on an “as is” basis without any warranty of any kind, whether express or implied. Your use of the information provided in this commentary is entirely at your own risk. In no event will USMR be held liable for any indirect, special, incidental, or consequential damages arising from the use of information contained in this commentary.