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National Debt Impacting Financial Portfolios

With a new US government administration, the lingering financial and economic uncertainty in America continues, especially as a new Covid-inspired stimulus payout amount of over a trillion dollars is negotiated. The current national debt crisis is already sitting at nearly $28 trillion.

While the government does not agree on much, the people know, for sure, that the national debt crisis is climbing and impacting financial portfolios across the nation. As money continues to be printed infinite and jobs continue to be lost, the value of the dollar risks extreme peril.

Changing America

For the average investor with a standard, non-diversified financial portfolio, the impact of our national debt crisis, among other political developments, is nothing short of frightening. There are many “firsts” to recognize in America, and they are based on many factors:

  • The trickle-down impact of governmental efforts by many over the last 30-40 years has placed the country in a volatile place
  • The Covid-19 pandemic has resulted in over a year of chaos due to job loss, working from home, schooling from home, human division, business shutdowns, and so much more
  • US political disparities among the parties and non-parties
  • Influences and interferences from other countries
  • Differences in social and political equalities

These factors, coupled with a current national debt (nearly the highest since World War II) that has almost exceeded our total economic size, cause a great deal of uncertainty—as we’ve never seen. A newly proposed stimulus of $1.9 trillion under the Biden administration is under review. That should get the US to a hideous nearly $30-trillion national debt—higher than any other country’s debt—this spring (if not sooner). While the nation’s debt has never been so high, the potential impact is clear.

Potential Impact on America

As the people in America make personal adjustments based on the state of the nation’s direction, they are also thinking of their retirement investments, costs of everyday goods, safety for their families, ability to purchase food, future of their jobs, their health, prepping for a disaster, and much more. While the national debt crisis appears indirectly to many, the overall impact on America is real (see The Fiscal and Economic Impact):

  • Prices started rising as further debt is incurred (due to stimulus measures, etc.)
  • Interest rates rising – increasing the cost of borrowing, reducing income, and limit consumer spending.
  • US dollar devalued further – the devaluing of the dollar lead a recession.
  • Yields are too high – this may cause a collapse.
  • Unemployment falling further – it already has due to 2020 Covid-19 lockdowns, the recent cut of the Keystone XL Pipeline project, and a halt of the border wall construction.
  • Other countries may stop buying our bonds and our debt – then the Fed must continue to print money, purchase our debt with the phony money, and then charge us for it.
  • The nation could ultimately face a recession and/or bankruptcy – in the worst case.
  • Reduced private and public investments – due to interest costs
  • Less economic opportunities – income is reduced when debt is high.
  • Less fiscal flexibility – higher debt contributes to a fiscal crisis
  • Risks to national security – debt impacts our strengths in national security.
  • Our safety net at risk – much-needed programs are positioned in jeopardy.

Gold & Silver Owners Hopeful

It is important to note that, amongst the state of national unrest, gold & silver owners are in a class of their own—with gold and silver prices shooting up since the Presidential inauguration. History shows us that with the fall of currency or a potential recession, investors hedge with gold and silver. With gold and silver prices rising (as high as $1860 per ounce in February 2021 and silver at $27.00) along with demand, investors are making their move to get on board.

This period offers a little good news for enthusiastic investors that have decided to diversify their portfolios and hedge with gold and silver. The fact is the impact of a national debt crisis creates a perfect storm for the precious metals. Contact Reagan Gold Group today, and do not wait another minute to take advantage of the current reasonable price of rising gold and silver. Get prepared now. It is not too late.

Learn how a Gold, Silver, & Precious Metals IRA can help you hedge against inflation

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