No Financial Safety with the New Republican Congress | The Gold Standard 2302

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2023 is already off to a rocky start. The $1.7 trillion, 4,000-plus pages, spending bill provides funding for many things. Some of the programs are highly controversial. There are things like increased affordable housing for families, a new park, Michelle Obama Park, and a new LGBTQ+ museum in New York. Passing the bill means Washington can keep the lights on. That is until September of next year. At that time, they’ll have to raise the debt ceiling again.

The budget to run the government was on the verge of running out, so congress had to do something. The bill keeps getting bigger and bigger with no end in sight. It’s a ritual that gets repeated every year.

Series host Dave Deno talks with guest Ken Russo, VP of the Midas Gold Group, about the more controversial aspects of the bill, such as the many “shameful” projects that are included.

That warning applies to us and the rest of the world. The global economy is staring down the abyss of a deepening recession. We could see some of the weakest paces of growth ever. There is no sense of financial security or safety for the year ahead.

There are so many threats to everyone’s financial safety that it’s challenging to pick the biggest one. Still, the biggest problem facing America is big government. It’s a machine of gigantic proportions that needs constant feeding. One of the terrible side-effects of the coming storm will be government coming to the rescue. All of us are standing witness to the catastrophe of modern government. We are living through the grinding wheels of the legislature as politicians work to rearrange the economy, help special interests, and bury generations of its citizens under mounting debt.

Social Security, Medicare, and other unfunded liabilities continue to add weight to the national debt. These promises from the government to the people have no financial foundation. The government made these promises without knowing how to pay for them. The unfunded liability behemoth is growing much faster than the US economy. Aside from the public debt, the government’s unfunded commitments have increased by $2.9 trillion since 2013.

More money printing is necessary to pay the interest on our national debt. That interest is the fastest-growing portion of the federal budget. Together with mandatory spending on entitlements, this accounts for over half of the budget.

We are all familiar with the taxes we pay when we buy something or the taxes we pay when we earn an income, but what about the hidden taxes that we don’t consider? Inflation is that kind of tax. Our government constantly engages in deficit spending. Spending more than you have and printing money to compensate for it will always come back to haunt us in the form of an inflation tax.

The Federal Reserve is committed to stopping inflation even if they have to strangle the economy, and the markets, in the process. When borrowing money costs more, people avoid using credit or loans. Demand goes down quickly and compels businesses to lower prices or stop raising them.

Although there’s not a unified vision of 2023 is going to play out. Recent market surveys suggest a 70% chance of recession this year. We’ve already begun to see layoffs from large companies and a slowing down of hiring practices.

Keep this in mind as things progress and the news of a weakening dollar and shrinking economy continue to pile in. Gold, silver, and other precious metals are constant and reliable.

As Ken reminds us in this and other episodes, “Take some of your paper assets and move them into precious metals.”

The Gold American Eagle is the most popular bullion coin in the world and Ken’s favorite gold bullion coin. You can tell how much he appreciates its design by the way he describes the coin in vivid detail. The classic obverse is taken directly from Augustus Saint-Gaudens’s Double Eagle debut from 1907.

Authorized under the Gold Bullion Coin Act of 1985 and signed into law by President Reagan, the American Gold Eagle program was groundbreaking. The American Gold Eagle immediately captured the imagination and attention of the world.

The 22-karat gold alloy is an English standard of .900 fine gold. The American Gold Eagle has a gold content of .9167.

The Gold American Eagle represents a watershed event in precious metals because it got the US into the national and global coin market. The US Mint produces 22-karat gold bullion coins in different sizes and denominations.
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