From Peter Reagan for Birch Gold Group
If you were to do nothing but listen to President Biden and the corporate media prattle on about the economy, you might think things sound great!
You would hear endless claims of “record economic growth” and quarter after quarter of “historic GDP.”
But that’s the main problem with Bidenomics in the media, it looks better on the surface than it’s actually performing under the hood.
When it comes to Biden’s recent gross domestic product and how well it’s actually performing, we’ll turn to a recent article written by Jim Rickards:
The point is that GDP growth is not being powered by economic fundamentals. It’s being powered by deficit spending. And the debt is growing faster than the economy itself. That’s unsustainable on its face…
At debt-to-GDP ratios below 90%, it is possible to get more than one dollar of growth for one dollar of new debt assuming the spending is done on growth-oriented projects including infrastructure. Once the debt-to-GDP ratio goes above 90%, the so-called “multiplier” drops below $1.00. This means that debt grows faster than the economy and the debt-to-GDP ratio gets worse. You can’t borrow your way out of a debt trap, but it seems that’s what the U.S. is trying to do.
In case you haven’t already guessed, the official debt-to-GDP ratio is well over 90% right now, and hasn’t dropped below 90% since the last major financial crisis back in 2008.
Which leads us to an important question: Is the Administration actually fueling an economic plane crash? By the looks of it, it would seem so.
Debt can lead to growth; excessive debt leads somewhere else
If you’re racking up credit card debt to “grow” your personal economy, it won’t take long before you realize that isn’t a good idea.
Of course, the economy doesn’t operate on a “cash” basis like an individual does. But as you’ll soon see its economy isn’t growing properly right now, either, and hasn’t been for quite some time.
This article summarized the situation nicely:
…the U.S. economy increased some $334.5 billion in absolute nominal dollar terms.
But where did this growth come from? Why debt of course, and a lot of it. For the answer how much debt, we go to the U.S. Treasury’s Debt to the penny website, where we find that debt on Sept 30, 2023 was $33,167,334,044,723.16 and debt on Dec 31, 2023 was $34,001,493,655,565.48.
In other words, it cost $834.2 billion in debt during Q3 to grow the U.S. economy by $334.5 billion
It boils down to this simple math:
- For every $2.50 in debt
- The economy (measured by GDP) grew by $1.00
- Net “growth”: -$1.50
That isn’t what a sane person would consider a good trade… But folks, that’s Bidenomics in action!
Now, to be fair, this isn’t quite as nuts as it sounds – because deficit spending used to work better.
The problem is, the more deficit spending there is, the less effective it is at leading to economic growth.
Look at this chart: the blue line represents total money supply; the red line represents “velocity” of money. “Velocity” is how economists measure economic activity – every time a dollar gets spent, velocity increases.
Two decades ago, every $1 got spent about twice (you use it to buy a candy bar, and the shop owner uses it to pay his electric bill, for example) – creating $2 in economic activity.
Today, every $1 gets spent about 1.3 times – creating $1.30 in economic activity.
There’s a very clear lesson here: The more money there is, the less the amount of money really matters to the economy.
Factor in the sheer wastefulness and stupidity of many government spending projects (plus the $1 trillion in debt service payments!) and it’s easy to see why it costs the government $2.50 to produce ONE single dollar of real economic activity.
But the government is full of very slow learners… Who seem absolutely convinced that it’s possible, if they just keep spending, that somehow they’ll be able to reverse simple arithmetic.
If these are the people responsible for our nation’s economic future, doesn’t it seem like time to take matters into your own hands?
Keeping your finances sane when the government is crazy
Remember Einstein’s definition of insanity? Doing the same thing over and over again, hoping for a different result…?
By Einstein’s definition, Bidenomics is insane.
If you want to keep yourself out of the fiscal asylum, it’s time to take steps to keep your finances both safe and sane. Here’s how…
Ensure you own assets disconnected from the madness. Physical gold and silver aren’t promises to pay – they’re tangible physical assets you can hold in your hand. They can’t be hacked, canceled or inflated away. And during times when the rest of the world goes crazy, physical precious metals often soar in value.
Trust me: It’s comforting to know you own something real that no amount of economic or government insanity can destroy.
As the world moves away from dollars and toward Central Bank Digital Currencies (CBDCs), is your 401(k) or IRA really safe? A smart and conservative move is to diversify into a physical gold IRA. That way your savings will be in something solid and enduring. Get your FREE info kit on Gold IRAs from Birch Gold Group. No strings attached, just peace of mind. Click here to secure your future today.
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I knew Biden was a dumbfuk years ago. Now he also has dementia. All this spending and money printing makes you wonder how long until everything crashes and we get a Fed CBDC. Bitcoin is still a good buy, I recommended buying at 18000, and now it’s at 62000. The next year to two years will see more growth with the halving and adoption of ETFs. Get a cold wallet and buy some BTC. Diversify.
or read this
https://www.goldonomic.com/When%20Money%20Dies.pdf
Chris Martenson has been covering the “Great Taking”. Part 3 is below (Chris is literally laughing at many parts. It’s that insane) and how “they” have everything structured, you’d have to be out of your mind to have $1 in the stock/bond markets or any security. “They” own it all. You life’s work and financial holding can be COMPLETELY taken from you at any time for any reason and you have NO say in the matter.
The WEF wasn’t kidding when they said “You’ll own nothing (and be happy)”.
If you don’t hold it literally in your hand , you don’t own it.
What’s at the bottom of Exeter’s Pyramid?? Get that stuff…
Now I know the great taking is more fake ass BS.
Chris Martenson, the biggest covid is real conman of all time.
It wasn’t that long ago you fucknut TBP’s mother fuckers that this mask wearing, vax pushing cock sucker was pushing this shit.
He’s a fucking fraud!!!!!!!!!!!
and what’s my name?
Get back on your meds. You’re not doing well being off them.
“In case you haven’t already guessed, the official debt-to-GDP ratio is well over 90% right now…”
What? What is 2023 US GDP?
Depends on who you ask.
The USA counts the salaries for Federal, State and local workers as well as what is spent for weapons, prisoners, welfare sponges and illegal invaders in its GDP.
Russia doesn’t.
Not being able to ever pay off the US debt doesn’t really matter anymore; the US Gov’t won’t be able to pay its’ interest due soon. If the interest on the debt was $1T in 2023 at 0.5%, and the interest rate on bonds selling now is at 4%, in a couple years there will be $8T of interest due. What is congress going to cut to get $7T to pay that amount of interest? Welfare payments are 65% of their budget now and they will not cut that, Defense is 11%…Can you say Hyper-infation soon, children?
Real inflation at 10%+. GDP, a top line figure, grows at less than 40% of that rate. Thats -40% of flat. Next question.
In 2030, we gifted our kids El Uni States of MexHaitiStan, a 60 trillion clownbux debt swamped, 4th world sheeeit hole.
…which welcomes investments and fresh organs from any disaster area tourist crazy enough to visit.
Still don’t see why Bidens name or Trumps name any of the high level puppets names are in these write ups. They make no decisions.
The Democrats only hope is that the economy doesn’t crash before the election from Biden’s awful economic policies, Trump wins and they can blame all the economic damage on Trump’s victory. If Biden wins they have no way to shift the blame.
CAN’T YOU FOLKS “GET-IT”???
ALL DEBT IS ILLEGITIMATE, BECAUSE HUMANITY WAS “NEVER FOR SALE”….REMEMBER???
THE “BANKOHOLIC’S” …FOUNDED BY THE “VATICAN” CREATED DEBT FOR THE SOLE PURPOSE OF “ENSLAVING” HUMANITY.
NOW THEY WANT TO MAKE A DEBT “PERMANENT” BY MAKING MONEY “DIGITAL”!…UNDERSTAND YET?!?
It’s not a good time to buy gold. The gold:silver ratio is extremely high at ~89. The gold:platinum ratio is at an all-time high. Be smart and buy platinum and silver, and perhaps a little palladium. Do a trade to gold in the future when normalized ratios return to these metals.