Where does the 49 Trillion Federal obligations number come from ?
How many years into the future ?
There's only 9 trillion in Federal debt.
Oh, by the way, the Supreme Court ruled long ago that Social Security was not a debt of the Federal Govenment...but merely a nice thing to do.
I suspect many of those "obligations" are pay-as-go transfer payments, like Social Security.
GDP is 11 Trillion +, Federal Budget is about 2 Trillion, with about 1.5 Trillion that going to various "obligations" and about 500 Billion a year discretionery spending.
Now gold etc. are still going up, but this "49 Trillion obligations " is edging into the tinfoil hat category.
It is gold bugs equivalent to "Dow 36,000" stuff - based on the belief that trees grow to the sky.
Remember what John Dizard said -
"Gold is the only commodity that is also a major world religeon"
And yes, I will still be buying gold, copper, silver, etc.
But at some price I will start selling, and depending on events, continue selling, until I have everything except some safety stock.
An I will be buying things that are priced at 20-30 % of their real long term value - and that could be tech or biotech, or something else, or even US Treasury Bills if we get the son of Paul Volker and they yield 14%.
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"I also did the unforgivable, as far as Coconut's mom is concerned. I introduced the Coconut, now 19 months young to the day, to (a) French fries, (b) Sara Lee pound cake, (c) Sara Lee cheese cake, (d) chocolate milk, and (e) ice cream."
Don't let your wife see Kill Bill. She might get some ideas... |
