Jul. 29 at 2:21 AM
$GLD $GDX $SLV $JNUG $B
The US has entered "The Spiral":
Currently, the US spending of tax generated revenue of
$4.15 trillion is :
$2 trillion deficit
$1.3 trillion interest on current debt levels
These 2 items total
$3.3 trillion eating up 79.5% of tax receipts, leaves
$850 billion left of total tax receipts. Interest alone is eating up 31% of tax receipts
Now defense budget is looking for a 50% increase or
$500 billion, plus the cost of the Iran war. Every 0.25% rate increase would add an additional ~
$100 billion so just 2 rate hikes add almost a quarter trillion in interest to our debt. Now the tax cuts in the BBB that will add an additional ~
$300 billion to the deficit. The US is also now taking financial stakes in publicly traded companies which is also adding to the debt.
Warsh & his big "overhaul" FOMC tomorrow. You won't even see 1 rate hike from Warsh but printing will be the answer
Take a look @ yields in Japan, US, Germany, Australia, Korea, France, UK, Canada.
