THE US DOLLAR DESCENDS INTO THE CRAPPER
Spent 39 years as a goldsmith. Went through a pair of gold price run-ups. Number three is the worst. When the dust clears, the dollar has shrunk just like it did in the 1980s when Nixon floated the dollar against gold and the dollar immediately sank losing more than half its value within a few years.
The gold price has increased by 4X the value when I retired 12 years ago. The price dropped 9% Friday but is up 70% for the year. J. P. Morgan predicts gold over $6,000 per ounce in 2026.
As the deficit expands and the dollar sinks, inflation will increase and the U.S. national checkbook is looking worse and worse. US Treasury Debt Hits $38 Trillion after Spiking by $1 Trillion in 2.5 Months and by $1.8 Trillion since the last Debt Ceiling revision. Hey Elon, what happened to your cuts of waste, fraud and abuse?
Reminds me of the fall of the Soviet Union. They tried to keep up with the U. S. and went bankrupt. What might that forecast about the competition between the U.S. and China? Our current debt equals 120% to 128% of GDP. China's current debt is ~88% to 102% of GDP officially, but may be much higher. Since Trump took office---and much more since his international insult tour at Davos---our allies have been lining up to cut trade deals with China.
Like 2025, 2026 is expected to add 1.8 trillion more to the deficit, not to mention what it will do to the value of U. S. currency. A product, even one assembled in the U. S. with some foreign parts, will endure a double whammy. It will cost more due to the tariffs (Trump's default Flat Tax) and even more with the decline of the dollar. Trump's shortsighted tax cuts to billionaires plus his lavish spending has created an out-of-control deficit that is quickly leading the US down the garden path toward insolvency.
Makes you wonder about the value of the chaos generated by Musk's cuts of to waste, fraud and abuse.
STAY TUNED!