Total U.S. national debt hit a new record high overnight at over $18 trillion as the Obama administration continues to pile debt onto the back of the U.S. taxpayer at a rate that would have made George W. Bush look positively prudent.
With the U.S. national debt or government debt now at over a staggering $18 trillion, it means that each household in the U.S. now carries the burden of $124,000 in national debt alone – or $56,378 per individual. This does not include the massive private debt or household debt burden – people’s mortgages, personal loans, credit card debt, student loans, car loans and other household debt.
Over the course of this year, however, the dollar has taken what should be seen as an alarming series of blows to its status as trusted sole global reserve currency as currency wars intensify.
Increasingly, the new power bloc that are the BRICS nations are settling their trade deficits with domestic currencies, by-passing the dollar. Russia and Turkey have just signed a gas-line agreement to this effect. As have Russia and the emerging superpower China.
There is a perception that the U.S. dollar is still strong and is still the reserve currency of choice.
The BRICs countries are major purchasers of gold – both their people and their central banks. If economic influence is moving East it would be prudent to emulate them and acquire gold as a store of value. As always, we advocate allocated and segregated gold coins and bars in secure vaults and in safe jurisdictions around the world.
This continuing surge in the U.S. national debt means that the U.S. is now the largest debtor nation in the world – by a significant margin. This profligacy will be paid back by the American people, and most likely by people every where, in the form of higher taxes, higher interest rates, inflation and almost certainly currency crises.
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