On a trailing twelve month basis, the U.S. Budget Deficit is equal to 7.3% of GDP and we are "not in a recession" yet. The U.S. Budget Deficit has been deteriorating since July 2022 when it hit a four-year low equal to 3.76% of GDP.
If a U.S. Budget Deficit equal to 3.76% of GDP is the "best we can achieve" during this current cycle, with gold bottoming two months later at $1,615 per oz, we could easily see gold double from its September 2022 bottom of $1,615 per oz and hit $3,230 per oz within the next twelve months. The only way one can argue that the current gold price of $1,946.13 per oz is expensive is if you compare gold to its prices in 1969-1971 or 1998-2001.
In November 1969, the U.S. had a Budget Surplus equal to 0.53% of GDP, which represented a better U.S. fiscal situation than 93.12% of the last 63 years. In April 2001, the U.S. had a Budget Surplus equal to 2.63% of GDP, which represented a better U.S. fiscal situation than 100% of the last 63 years.
Today, the U.S. has a Budget Deficit equal to 7.3% of GDP, which represents a worse U.S. fiscal situation than 91.8% of the last 63 years.
Both 1969-1971 and 1998-2001 were among the best 10 percentile of U.S. fiscal situations from 1960 through 2023. Today, we are among the worst 10 percentile of U.S. fiscal situations from 1960 through 2023, and we aren't in a recession yet! The inverted yield curve has a 100% perfect track record of predicting recessions!
As we predicted, the U.S. Debt Ceiling debate was not worth our time to analyze or discuss because we knew that nothing was going to happen to solve this crisis! U.S. politicians on both sides of the aisle are puppets. They're paid actors whose job it is to divide the public so that half of the population is always going to be supportive of policies that enrich the military industrial complex!
Preparing Americans for Hyperinflation
