SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?


To: Claude Cormier who wrote (311933)10/14/2025 10:50:38 PM
From: koan1 Recommendation

Recommended By
jaubin

  Read Replies (1) | Respond to of 312289
 
I just don't see a way out of the debt trap the US has created.

The present administration just passed another multi trillion tax cut that will increase the debt big time.

So for me it is a simple equation.

The debt is almost 38 trillion and sky rocketing, at a baseline of 2 trillion a year.

But if we go into a recession, tax revenues will plummet, as our GDP falls, and revenue will fall with it, just as our debt is exploding.

Plus the US fired hundreds of IRS agents, so that will cost us big time.

And our normal buyers of our debt are leaving.

So it will require higher interest rates to attract new buyers, especially as a falling dollar negates the interest income. But people are wary, and every few bases point rise adds billions to the debt.

So printing will probably become a must.

Then two other variables are goosing fiscal problems, tariffs raising inflation, and their intent on lowering the fed funds rates by 300 basis points and Trump will be in a position to do that by next spring when Powell's tenure is up.

And if they do that they not only cause more inflation, the world will not trust us with our finances.

Now when you put all of those variables into an equation, the out come is pretty clear, to me anyway.

As far a paper goes, it is being suspect worldwide as we are not the only one's with huge debts e.g. Japan, and several EU countries

But I think predicting gold and silver speculation is impossible as speculation involves predicting the human brain, and who can do that, we humans can be very irrational.

So with silver there will be what industry needs to pay to get what it needs, and people will pay just to have it?

With gold, China, and BRICS in a sense, is planning to use it to anchor the Yuan to replace the dollar!