With our nation being $27 trillion in debt, economist James Rickards believes the U.S. is broken. However, he’s detailed a solution to fix it and explains how gold could play a major part. In other news, the Commerce Department has reported that the U.S. economy grew at a 2% rate in Q3. CNBC reports that’s the slowest increase recorded since the end of the 2020 recession.
The Daily Reckoning via ZeroHedge/James Rickards
The Golden Solution To America’s Debt Crisis
Right now, the United States is officially $27 trillion in debt. Nearly $7 trillion was added since President Trump took office.
This year’s budget deficit is projected at $3.3 trillion, over three times last year’s estimate. The coronavirus is responsible, and the number should be an outlier. But annual deficits will be at the trillion-dollar level for the foreseeable future.
Basically, the United States is going broke.
I don’t say that to be hyperbolic. I’m not looking to scare people or attract attention to myself. It’s just an honest assessment, based on the numbers.
Now, a $27 trillion debt would be fine if we had a $50 trillion economy. But we don’t have a $50 trillion economy. We have about a $21 trillion economy (at least we did), which means our debt is bigger than our economy.
You can read the full story, here.
Economic growth rate slows to 2% on a sharp slowdown in consumer spending
The U.S. economy grew at a 2% rate in the third quarter, its slowest gain of the pandemic-era recovery, as supply chain issues and a marked deceleration in consumer spending stunted the expansion, the Commerce Department reported Thursday.
Gross domestic product, a sum of all the goods and services produced, grew at a 2.0% annualized pace in the third quarter, according to the department’s first estimate released Thursday. Economists surveyed by Dow Jones had been looking for a 2.8% reading.
That marked the slowest GDP gain since the 31.2% plunge in the second quarter of 2020, which encompassed the period during which Covid-19 morphed into a global pandemic that resulted in a severe economic shutdown that sent tens of millions to the unemployment lines and put a chokehold on activity across the country.
You can read the full article, here.
Yahoo Finance/Brian Sozzi
Inflation will plunge in 2022: Goldman Sachs
Hat tip to Goldman Sachs for taking a somewhat contrarian take on the longer-term outlook for inflation.
Whether it proves correct is anyone’s guess as headlines continue on price spikes for commodities and consumer goods.
“We are boosting our sequential inflation assumptions for Q4 and early 2022. We now expect year-on-year core PCE inflation of 4.3% at year-end, 3.0% in June 2022, and 2.15% in December 2022 (vs. 4.25%, 2.7% and 2.0% previously). This slower resolution of supply constraints means that year-on-year inflation will be higher in the immediate aftermath of tapering than we had previously expected…”
Read the entire story, here.