Stray Thoughts and Intuitions. By Gene W. Edwards. Posted 9/28/2023.

The federal debt bomb.

Once a country’s national debt reaches 90% or more of its annual gross domestic product (GDP), that currency never recovers. It either languishes, like Japan’s, or it collapses. Now go to usdebtclock.org and put it that website on your “Favorites.” You’ll see there that our present national debt is 33 trillion and our GDP is 27 trillion. Thus, our national debt is 122% of our GDG . . . and going up! Presently, we’re adding over two trillion dollars this year to our national debt — with no end in sight! China’s national debt is 279.7% of its GDP, and Japan’s is 263%.

What do I conclude from the above three sets of figures? Intuitively (here goes):

Debt destroys countries. A strong country has no national debt and its currency is backed up by gold and other easily convertible assets. Watch the collapse of the USA’s currency in the relatively near future. No politician or political party here is realistically addressing the issue. Our currency is backed by “nothing.” Hold gold. I continue to say the dollar meets the road in late 2025. Don’t get run over in the melee of its descendance.

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Three weeks off?!

There is a chance our Congress will pass a temporary spending bill soon — October 2 — to avoid a sustained budget crisis of days or weeks Such a bill would take us to the end of this year, or some agreed upon stopgap later date, but still not…