“‘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