Fed Chairman Powell says he is ‘very worried’ about growing amount of U.S. debt
“‘I’m very worried about it,’ Powell said at The Economic Club of Washington, D.C. ‘From the Fed’s standpoint, we’re really looking at a business cycle length: that’s our frame of reference. The long-run fiscal, nonsustainability of the U.S. federal government isn’t really something that plays into the medium term that is relevant for our policy decisions. ‘However, ‘it’s a long-run issue that we definitely need to face, and ultimately, will have no choice but to face,’ he added.”
USAGOLD note: The forgotten crisis. . . .
The National Debt and Gold
Here’s why the two have risen together since the 1970s
and why the correlation is likely to continue
“It is a fact that when your national debt gets to the level ours is, that it constitutes an economic threat to the society, and that kind of threat ultimately has a national security consequence for it.” – John Bolton, U.S. National Security Adviser to President Trump
“Last month, as the US midterm elections approached, Deutsche Bank analysts released a calculation that should have made American voters wince. It shows that the US government currently pays $1.43bn each day (yes, day) to service its public debt — 10 times more than any other G7 country (Italy is a distant second in this grim league).” – Gillian Tett, Financial Times