Government debt to GDP per country and external debt to GDP per country has skyrocketed. Many top economists around the world are asking the question if these debt levels are sustainable and if they can ever be paid back. At some point, these currencies may have to be devalued by either their respective governments, or they will suffer a tremendous loss in purchasing power per currency. The purchasing power of the U.S. dollar has decreased over time as price levels have risen. For example, one U.S. dollar could buy 10 bottles of beer in 1933. Today, it’s the cost of a small McDonalds coffee. As the value of the dollar has gone down, let’s take a look at what hard assets, specifically rare coins, have done against the dollar and the stock market.
Now, let’s take a look at how indebted the United States truly is. Let’s start with a single $100 bill and how it stacks up to the total national debt of the United States. Now, here is $10,000 dollars. We’ve seen what a million and what one hundred million dollars looks like. Now let’s see how one trillion stacks up. That was one trillion dollars. Let’s see what it looks like when we stack 30 times more to get us to the current level of our national debt. This is what the current national debt of the United States looks like when stacked from top to bottom.
But wait, it gets much worse. In 2021, the total United States unfunded liabilities stands at more than $150 trillion dollars. And by 2029, it will balloon to $225 trillion dollars. However, the United States GDP today stands at $22.2 trillion dollars, but will only rise to a little over $32 trillion dollars by 2029. Translating that debt to taxpayer, it stands at $255,487 per taxpayer in 2021, and it will inflate to $626,000 by 2029.
But that’s not everything. Let’s break it down by 2029. Federal Reserve debt. State debt. Student loan debt. Credit card debt. Social Security liabilities debt. Medicare liabilities debt. Interest on the debt alone will be close to $600 billion. The United States and the world is awash in record debt. The real debt level when adding up all debt and unfunded liabilities of the United States by 2029 is $225 trillion dollars, which equates to over $626,000 per citizen verses $4.5 trillion dollars tax revenue base. And it seems there is no end to this debt, as the U.S. budget deficit is expected to reach $3 trillion again this year, according to the Congressional Budget Office, after Biden's massive coronavirus stimulus plan.
But as a way to preserve your wealth, gold has always been a store of wealth, and in times of extreme financial conditions or another global financial meltdown, gold is not just a store for wealth preservation, but a wealth creator for decades. Even famous investor Sam Zell, who has been a lifelong gold pundit, has recently bought gold to hedge against surging inflation. Some investors say gold price will hit $4,000 in 3 years, because inflation is massively understated, and real inflation is closer to 12%.
Hard Asset Management is one of the world’s premiere rare coin and precious metals dealer/firms. Get your free investor kit on how you too can own precious metals and select rare coins. Call or email us at info@bmcham.com. Do not be left behind as we continuously see the dollar losing its value. Call today. 844.426.4653.
