Though I hate to admit it, I seen nothing in Trump’s temperament or previous governance to indicate that he is the man to do it. In his 1st term, there was nothing accomplished or even proposed that would indicate debt reduction was an even a low level priority. Remember the early covid days and the multi-trillion dollar public buyoffs sent as $2000 checks per family?
Reality is that the issue won’t be dealt with until reality shows that it ultimately WILL be dealt with. At some point, a tripwire will occur and hyperinflation will start. If you have a good memory and track retail prices, you will have to conclude that inflation has been significantly larger than officially stated. Especially since the covid era.
There is nothing on the political horizon from any political entity that indicates a willingness to take on budget and reduction.
Debt reduction will occur via inflation, whether severe or hyper remains to be seen.
The average US house is climbing toward $500,000, average car $50,000, hamburger over $7/lb, good ribeye $18+/lb, etc, etc, ad nauseam. “Tom’s Official Inflation Monitor Based On the Price of Cat Food” tells us that a 5.5 oz can of Friskies cat food which sold for $.38/can in 2020 now costs $.87/can. Everything else is on the same slope.
Solve for X ( 1+X%)^5= 2.3 Hint, around 18% per year.
And this curve will not prove to be linear.
What do you think is behind the historically meteoric increase in the price of gold and silver? I bought gold 20 years ago for $600/oz and silver for around $7-$8, an increase by a factor of around 8-10. A lot of the increase has happened since covid. Do I sense a commality here?
I suspect that most of the sorta recent increase has been as people and institutions see something coming and are looking for something more stable than the US dollar.
Picture by TomD BTW, part of a series I was commissioned to do for an Australian coin dealer.
I’ve been a stacker since since pre-Y2K when I bought my first roll of Mercury Dimes. I’ve never stopped. Several years ago I retired and I rolled part of my TSP/401K of to a gold IRA. Best move I could of made was getting out of the casino stock market. Yes, the war has dropped things a little bit, but I’m still stacking. Commodities are shooting up again. I have more faith in them than the fiat currencies. Printing money is not the answer, it’s a house of cards waiting to be kicked over.
Amen.
Quick lesson that you already know about, Bigus but very few people in general do. US silver coinage ($1, $.50, $.25, $.10) of 1964 and previous is known as 90% in that it is struck with 90% silver by weight. Any combination of $1.00 face value (4 x$.25, 1x.$.50+5x$.10) any combination contained .725 oz of silver when minted and averages .715 oz after years of circulation. BTW: Silver Eagles are not the silver dollars that were in circulation. Silver Eagles contain 1.00 oz of .999% silver no matter what the year. With silver at $70/oz, that means that $1.00 of… Read more »
Silver Eagles aka SAE’s.
These are also made in .999 gold