The Greateset Economy in History took Federal debt from 75 % to 100% of GDP

For those who look back nostalgically to the Trump years as the greatest economy in history and wonder where we went wrong: look at the chart above.  The greatest economy in history completely collapsed in 2018 and took 15 TRILLION DOLLARS OF BAILOUT MONEY between stimulus and Fed balance sheet expansion.  This took the federal deficit from 75 percenty fo GDP to 100 percent of GDP in two years!

Before the election Trump, (who had declared bankruptcy three times), also declared himself a master of debt and promised to do for the country what he did for himself.  And he delivered an orgy of debt.  

Now the Fed has not only to raise rates to combat the resulting inflation, but it must try to delever its own massive balance sheet: Quantitative Tightening, as the economy returns to sub 1 percent trend growth.  Where it was before Trump's orgy of debt.

Sound Impossible?  

It is.

Sooner, rather than later, the Fed will have to pause both in its rate hikes and in its balance sheet "normalization."

When it does it will be either because we've tipped into debt deflation that will require massive QE.

Or because the Fed gives up on fighting inflation for fear of looming debt defaltion as the economy slows.

Either way, you will need portfolio protection.

It doesn't have to be gold.  But I can't think of anything better.