GOLD LOVES BIG GOVERNMENT

 

Once Government becomes large enough, the only cure is Bigger Government.

What is Large Enough?  Debt is greater than GDP.  In the US debt is 125 percenty of GDP

In the  US debt to GDI (gross domestic income)  is 140 percent.  That shouldn't be possible but it is.

In the US debt service is 17-20 percent of the Federal Budget (depending on off balance sheet service)

Neither candidate running for president has any plan to reduce this.  Because there is no plan.  When debt becomes this large - and this debt is echoed in the corporate and household sectors (go through the data yourself) - the only solution is to Big Government is Bigger Government.

What does this mean?  It means when spending on social programs is so great the government runs massive deficits and the inflationary spiral results in Diminishing Returns whereby the more they spend, the poorer everyone gets - except the super rich -

Then  the angered impoverished class votes in what they believe to be Right Wing Reformers.  These Right Wing Reformers take over the government and they do end the spending on social programs - and they replace it with an even Bigger Government that spends only on itself - and all the money goes to those in control of the Government.

Thus Big Government beomes Bigger Government.

And the Super Rich are those who control the Government.

Like Russia.  Like Hungary.  For example.  Like Turkey.  Like Saudi Arabia.  But the movement to emulate these countries has seized the West.  Few here see this coming even though many are openly campaigning for it.  

It's strange.  How few see the obvious.

But Gold sees it.  And that is why Gold is moving without the support of the retail public in the US - who doesn't believe this is what's coming.

We'll soon see who's right - Gold or the Retail Public.

I'm betting on Gold.