Day of Reckoning is Nearly Here The Fed and the US government is on a collision course. The Feds want to take the fund rate to 4.5 %. Today sits at around 3.9%. Not if, but when it hits 4.5% the cost to service the US debt will be 1.4 billion
$ annually. To put this in perspective, the entire tax revenue was 2.74 trillion dollars. 50 cents of every dollar will go to service debt. Additionally, the high US dollar is crippling world economies.
So I ask, what pill will Joe Public be willing to swallow. Higher taxes, Higher cost of Goods, Higher inflation, Higher Interest rates, Lower Standard of Living. It will be a Giant Game of Wack-a-Mole. They will wack down every distasteful mole that shows it,s ugly side not realizing that they have to deal with two or three more dastardly moles rising up. Gold and precious Metals will be the beneficiaries. Someone on this board said banks are buying Gold. They know the game is up.