It’s pretty clear that the United States is facing a number of monumental problems.
Chief among these is the national debt. More specifically, it is the US government’s skyrocketing interest payments on the debt that are placing an unprecedented burden on the budget.
The US is not far from needing to borrow money just to pay interest on the money it has already borrowed. And that is clearly a spiral that is nearly impossible to remedy.
In this Monthly Letter, we discuss what this means for Federal Reserve policy-- the US central bank which will be responsible for bailing out the US government.
The solution will inevitably include a massive creation of new money to the tune of tens of trillions of dollars over the next decade.
One obvious result of this will be higher levels of inflation. We also cover some solutions that individuals can take to mitigate, or even benefit from, inflation.
But even more concerning is the effect this will have on the credibility of the Federal Reserve, and the US government. More than likely, the US will be looking at the loss of the dollar’s status as global reserve currency within ten years.
The loss of this extreme privilege will be very hard on Americans unprepared for a monumental shift in their standard of living.
However, for those prepared for the change, it will not be an earth shattering event.
Once again, we discuss ways to overcome, and even prosper during the coming decade of economic turbulence.
We even name a few specific “real asset” stocks which are already profitable, but could also be poised to benefit substantially from these conditions over the coming years.
You can read the Monthly Letter below.
In approximately the 18th century BC, more than 1,000 years before the birth of Socrates, Aristotle, and Herodotus, a small tribe of nomadic people stumbled upon the Peloponnese Peninsula in modern-day Greece. They found an area that was abundant with fresh water and fertile soil, boasting a small hillside about 900 feet above sea level…
