‘There will be a reckoning’: Goldman Sachs CEO says US debt will blow past $40T. How to shockproof your assets
View original at finance.yahoo.com‘There will be a reckoning’: Goldman Sachs CEO says US debt will blow past $40T. How to shockproof your assets Taylor Hill / Getty Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below…
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Current U.S. debt levels are not sustainable and will eventually bite because you cannot keep borrowing money endlessly
80% confidenceCentral banks are acquiring gold as a diversifier and it is prudent for individual investors to do the same
80% confidenceAggressive fiscal stimulus has become embedded in democratic economies and cannot be easily withdrawn
80% confidenceUS debt has grown from $7 trillion to $38 trillion since the financial crisis and will grow into the low $40 trillions through refinancing alone
80% confidenceThe One Big Beautiful Act Bill will add over $5.5 trillion to the national debt by 2034
80% confidenceAmerica is heading toward a debt death spiral where the government must borrow simply to pay interest
80% confidenceThe US debt level is not sustainable and will eventually have negative consequences
80% confidenceGold can easily rise to $10,000 per ounce in the current environment
80% confidenceAmerica is heading toward a debt death spiral where government must borrow to pay interest
80% confidenceThe One Big Beautiful Act Bill will add over $5.5 trillion to the national debt by 2034
80% confidenceInvestors typically don't hold enough gold and should allocate 10-15% of their portfolio to gold as a diversifier
80% confidenceWithout stronger economic growth, a painful fiscal reckoning will follow; the path out is a growth path
80% confidenceThere is likely to be a 10-20% drawdown in equity markets sometime in the next 12-24 months
80% confidenceFiscal stimulus has become embedded in democratic economies and cannot be easily withdrawn
80% confidenceU.S. debt has grown from $7 trillion to $38 trillion since the financial crisis and will grow into the low $40 trillions through debt refinancing alone
80% confidenceIf foreign buyers of U.S. debt hesitate, the U.S. could see low inflation but elevated interest rates due to high deficits
80% confidenceUS national debt over $38 trillion is rising and could erode confidence in US markets; foreign buyer hesitation could cause low inflation but elevated interest rates
80% confidenceGold can easily rise to $10,000 per ounce in the current environment
80% confidenceIf debt keeps growing, financing will shift from foreign buyers to Americans, crowding out investment and slowing growth
80% confidence$100 in 2025 buys what $12.05 did in 1970, illustrating severe long-term dollar purchasing power erosion
80% confidenceCentral banks are acquiring gold as a diversifier; individual investors should consider allocating 10-15% of portfolios to gold
80% confidenceInvestors typically do not hold adequate gold in their portfolios; gold is an effective diversifier when bad times come
80% confidenceWithout stronger economic growth, the U.S. will face a reckoning and the path out is a growth path
80% confidenceThe U.S. will not default outright; instead the central bank will print money to buy debt, causing currency depreciation
80% confidenceThere will likely be a 10-20% drawdown in equity markets sometime in the next 12 to 24 months
80% confidenceGrowing debt will crowd out foreign buyers, shift the financing burden to Americans, crowd out investment, and slow growth
80% confidenceThere will not be an outright default; the central bank will print money to buy debt, causing currency depreciation
80% confidence