Gold prices are trading significantly lower on Thursday morning. The price of gold is trading at $2,362.32, down $35.44. The price of silver is trading at $27.69, down $1.22. The fiscal health of the United States is deteriorating, with the federal deficit reaching $1.27 trillion for the fiscal year ending in June, driven by surging interest payments on the national debt, which is nearing $35 trillion. In June alone, the Treasury reported record-high receipts of $466 billion, yet still ran a $66 billion deficit. Interest payments on the debt consumed 76% of all personal income taxes collected that month, highlighting the severity of the situation. Economist E.J. Antoni noted that the cost to service the debt has increased by 33% in a year, with projections suggesting it could exceed $1.14 trillion this fiscal year. Elon Musk responded to these figures by stating that “America is going bankrupt,” emphasizing the unsustainable nature of the current fiscal trajectory and the potential for severe economic consequences if spending is not curtailed.
