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May 11, 2021 | The Ticking Time Bomb of National Doom?

Sean Brodrick

Sean is the natural resource analyst for Weiss Group. You can read his thoughts on gold, oil, cannabis, uranium and other natural resources at Wealth-Wave.com

You know the government regularly prints money like it’s … well … paper. And the pandemic has kicked things into overdrive.

In fact, the current national debt just soared beyond $28 trillion. That’s an increase of nearly $5 trillion in just 14 months.

But if you think that’s bad, you better fasten your safety belts. When you add in unfunded liabilities, Uncle Sam’s debt outlook is much worse than anyone is telling you!

You already know about the $6 trillion President Trump spent on the coronavirus crisis and economic stimulus.

You also know about the nearly $2 trillion more that President Biden added in his first two months in office.

Not to mention at least $11 trillion more Biden plans to spend in the next couple of years on such things as:

•  Student loan forgiveness

•  Climate change

•  Green energy

•  Infrastructure

•  Expanded Obamacare

•  Medicare for 60-year-olds

•  Free college education

•  And universal preschool

That’s on top of the trillions the government is already obligated to spend over the next few years on:

•  Medicare

•  Social Security

•  Government pensions

•  Defense spending

•  Interest payments on government bonds

•  Veteran’s benefits

•  And more

Experts estimate these so-called “unfunded liabilities” will exceed $157 trillion by the year 2023.

That’s $157,000,000,000,000!

These unfunded liabilities have been called “the ticking time bomb of national doom.”

Medicare, for example, is expected to run out of money by 2026.

Social Security won’t have enough money to pay people their full benefits by 2034. It says so right on your Social Security statement!

But it also says you shouldn’t worry because the government will come up with some solution by then.

Can you guess what the government’s solution might be?

Print more money! And that’s the real problem …

The government is writing checks without any money in the bank.

It reminds me of the story about the boy who went off to college and his parents decided to give him his first checking account.

Before long, the young man bought so much beer and pizza that his checks started to bounce.

His father called him and said, “You’re out of money, son.”

“How can I be out of money?” he replied. “I’ve still got lots more checks!”

You might not be too surprised by that kind of stupidity from a freshman in college … but it’s downright scary when you see the same behavior from the chair of the Federal Reserve Board!

The sad fact is that the national debt is now too big to be paid off by the usual means of raising taxes and cutting spending.

Raising taxes?

Why, you’d have to collect nearly $474,000 in extra taxes from every person in the United States to pay off the national debt.

Cutting spending?

Yeah, sure. Maybe you could balance the budget if you got rid of the Army, Navy, Marine Corps, Air Force, Medicare, Medicaid and Social Security.

That might make a dent in the deficit.

But I think the American people would miss some of those things, don’t you?

The only solution the Fed has come up with is essentially the same one the young college freshman came up with:

Keep writing more checks!

Or, in this case, keep printing more dollars.

Unfortunately, once a society depends on printing press money — money that’s not backed by taxes or supported by spending cuts — that society is essentially doomed.

You know it.

And I know it.

But the most powerful people in Washington are in a complete state of denial.

In fact, this denial even has a name: “Modern Monetary Theory.”

The good news is I believe our national disaster could be a ways off yet.

So don’t let the next correction throw you into a panic.

Because the K-Wave will climb following the “undertow” …

So, get ready to scoop up some bargains!

All the best,

Sean

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May 11th, 2021

Posted In: Wealth Wave

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