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Worlds Largest Debtor Ever Raises U.S. 'Debt Ceiling'...Again
The US government has once again agreed to increase it’s so-called debt “ceiling” – this time from $18.5 trillion to $20 trillion. The so-called debt ceiling is recognized industry-wide as a complete misnomer.
Source: Sharelynx.com
“The phrase “debt ceiling” sounds austere and restrictive, as if intended to keep a lid on government spending. Actually, the U.S. national debt limit was conceived almost a century ago to do the opposite: to make it easier for Washington to borrow money” (see: Bloomberg Quicktake)
Investment advisers Casey Research yesterday called the debt ceiling ‘a farce’.
“Last week, Forbes reported the U.S. government has raised the debt ceiling 74 times since March 1962. The latest increase – number 75 – should help fund the government until March 2017 or so.”
They highlight just how serious and foreboding these uncontrolled US debt levels are:
“With a debt of $18.3 trillion, the U.S. is the most indebted nation in the history of the world. This massive and unprecedented debt load is extremely dangerous. We believe it’s only a matter of time until it sparks the next financial crisis.”
In their article Casey Research point to the extremely low interest rates as another dangerous factor in the US debt game. “The Federal Reserve dropped its key rate to effectively zero in December 2008. Seven years of easy money has made it incredibly cheap for consumers, businesses, and the federal government to borrow money”.
The research firm quote the recent observations of famed contrarian investor Marc Faber, who points to the facts:
The U.S. government’s debt has more than doubled over the past decade, from $7.3 trillion in 2004 to more than $18 trillion today. But due to low interest rates, the cost to service that debt has only gone up 34%.
This is one reason why Faber is investing in precious metals and precious metals stocks…
Read the full article “Why the U.S. Debt Ceiling is a Farce“.
Casey Research can be followed @caseyresearch
DAILY PRICES
Today’s Gold Prices: USD 1107.70, EUR 1018.81 and GBP 731.64 per ounce.
Yesterday’s Gold Prices: USD 1107.30, EUR 1019.80 and GBP 719.61 per ounce.
(LBMA AM)
Gold closed yesterday at $1130.50, down again by $4.00 for the day. Silver also closed lower by $0.09, finishing at $15.00 even yesterday. Platinum lost $7 to $946.
IMPORTANT NEWS
Gold hovers near 8-week low ahead of U.S. jobs data – Reuters
Gold logs longest losing streak since July – MarketWatch
GoldSeek Radio Nugget: Bob Hoye and Chris Waltzek – Goldseek.com (radio)
Gold Trims Weekly Drop as Investors Count Down to U.S. Payrolls – Bloomberg
Former Greek Finance Minister Varoufakis: ‘Ireland is a not a model of successful austerity – Irish Independent
IMPORTANT ANALYSIS
Gold’s medium-term outlook brightens on China, India: Russell – Reuters
Fixing the eurozone, digital currencies and peer to peer lending- FT
The Fed Desperately Tries to Maintain the Status Quo – Mises Institute
Last Gasp Saloon – Hussman Funds
India’s Gold Stash Dwarfs Fort Knox Hoard and Modi Wants It – Bloomberg
Read more News & Commentary on GoldCore.com
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