Protect Your Retirement Portfolio from Historical Debt Levels

Last Monday the U.S. federal government’s arm the Congressional Budget Office released a stark report. This one concerned the condition of the government’s current and near-future finances. The report was anything but encouraging.

The CBO candidly admitted that the spending patterns of the federal government are leading to an annual budget deficit in excess of a trillion dollars by the year 2020 (in only two years). This deficit means that the government is spending beyond its financial ability by this amount.

The IRS gathers up a vast sum in taxes from individuals and businesses every year. Congress simply spends far more than this on everything from defense to entitlements like Medicare. The federal government now has established a decades long reliable trend of outspending its considerable resources nearly each year.

The CBO estimate shows that the tax revenue and spending gap will reach and then surpass the trillion dollar mark regularly and consistently going forward. This CBO chart below shows the deficit trend over the last few decades:

The government makes up this annual shortfall difference by issuing a comparable amount in debt. This is how the country’s total debt has grown to surpass $21 trillion. It now exceeds the entire annual output of the whole economy. Each year this debt to GDP ratio is becoming worse for the U.S.

Today we live in the historical period with the highest amount of debt that humanity has ever managed to create. The U.S. and most national governments are well beyond bankrupt. Their conditions can not be salvaged through taxing or confiscating wealth from their citizens. This is because the companies and individuals are also deeply indebted.

The runaway debt has been made possible by central banks having the ability to invoke additionally needed currency at whim. They can do this because the present day currency is fiat. It has no intrinsic value.

As of 1971, the American dollar departed from the gold standard where each bill was backed up by a certain quantity of tangible precious metals. Since then its entire value has been based on the federal government’s promise to pay.

History has proven that as fiat currencies’ perceived values collapse, they immediately revert to their intrinsic value. This makes paper currencies all the riskier as the central banks have printed them with reckless abandon over the last decade especially. These same central banks have promised that they will print as much paper currency as needed to defeat any deflation that appears.

The final result of this would be currency devaluation that finally ends in hyperinflation. Weimar Germany of 19232008 Zimbabwe, and present day Venezuela are all tragic examples of this end game.

The means of escaping from the debt-burdened dollar has already appeared. Leading energy supplier Russia has consented to selling its oil and natural gas to leading energy buyer China. Instead of selling it in traditional American petro-dollars, they will transact in Chinese yuan which will be redeemable for gold. It represents a significant initial step to getting away from the American government’s now-dominant promise of collateral.

Is Your Retirement Portfolio Protected from the Historic Levels of Debt?

Ultimately the federal government (and other) debt is leading to a coming financial crash. The greater the amount of debt, the more serious the crash will be. As there is now more debt than ever before, it means that this calamity could be the one that dwarfs all prior ones. Fortunately you do not need to lie awake trying to determine exactly when and how this will happen. Gold consistently has been protecting people’s wealth from financial crashes for thousands of years.

Click here today so that you can obtain your free, no-obligation gold IRA rollover kit from the top-rated gold retirement firm in the country Regal Assets. This will deliver the critical information you need to successfully protect and insure your personal IRA account via a partial diversification of your retirement funds into physically held, tangible gold.

Will your portfolio weather the next financial crisis?

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