This study shows that since 2008 and the great Recession the economy didn’t grow at all if you deduct the injection of debt financed deficit spending. Here is a chart of GDP minus deficit spending:
This is sort of like a homeowner borrowing a lot of money on his house. It seems he’s richer and can afford more purchases, but it only depletes his net worth. In the future, if a recession arises, much more debt will have to be created. It’s true that there is no limit on how much money can be created by the Federal Reserve, but diluting the dollar could cause it to collapse like Venezuela.
If the government is spending like there is no tomorrow, what do they know that we don’t? Like, maybe they think they have gotten away with a huge scam printing all that worthless money that we take to work long hours only to see it evaporate with inflation and taxes? Do they get together and laugh like hell over the public’s stupidity? Do they salivate for the time when the dollar loses it’s value totally, like in Venezuela, and Americans are suddenly without the money to feed themselves? This is not a partisan thing, Obama doubled the national debt to $20 trillion and in just the few short months of Trump it’s up to $21 Trillion, and with $1.5 trillion in planned infastructure, that will all be deficit spending as well.
I would expect to see precious metals move higher in anticipation of a big event like a Russia/China gold move. TPTB always manage to get information long before you and I and they would push the price up. So I don’t think the Saudis have made the decision just yet to dump the dollar. We’ll see a big move in gold before that.
h/t Natura Naturans