Regardless of what you may think about the Trump administration’s tax reforms, the current levels of U.S. debt are not sustainable. With over $20 trillion in debt already, the nation could potentially add to the deficit as it lowers tax revenues. The argument for such a move is that increased economic activity and production will pave the way for that deficit to be brought back under control. Even if that proves to be the case, the problem with debt is that not only does the actual debt and interest for it hurt, but the mentality that allows to debt to accumulate can be extremely dangerous.
The government has a habit of kicking the can down the road when it comes to debt. How many times has a potential government shutdown been wildly covered in the financial media? How many times have lawmakers had to make a last minute deal in order to prevent the government from running out of money? How lousy might it be if the government did in fact run out of cash and shutdown?
What about the U.S. credit rating? What if a default by the government did occur-then what? What if the rates the country is forced to pay on debt were to increase?
These are all important questions, and hopefully lawmakers will be able to avoid a shutdown now or in the future. It does beg the question, however, of why this issue continues to come up. The answer, while many may not like it, is simple. Many countries have simply adopted a spend now worry about the consequences later mentality. Such a mindset is a long-term disaster, and could lead to fiscal ruin for any nation that cannot right the ship.
A government shutdown could lead to sharply higher interest rates, further defaults, and currency debasement. This is exactly why investors ought to consider hard assets like physical gold as part of their overall strategy.
Unlike paper money, which can be created out of thin air and tends to lose value over time, gold cannot be. It carries zero counterparty risk, unlike paper money, and can be used as medium of exchange anywhere in the world. It cannot default or go bankrupt, and cannot simply be replaced by a new form of currency.
As the current battle to keep the government funded goes on, now is the time to consider what a shutdown could do, and to have a plan in case such a shutdown ever occurred.
Adding physical gold to your holdings has never been easier than it is today. The metal can add further diversification to your holdings, and can potentially provide an important hedge against a number of economic and geopolitical issues such as inflation, deflation, declining currency values and more.
Speak with an Advantage Gold account executive today about the potential benefits of gold ownership. Our associates are here to answer any questions you may have, and can even show you how easy it is to use your IRA account to add this key asset class to your holdings.
Don’t wait for an actual shutdown to happen, or for increasing debt loads to eventually wipe out the value of paper currency. Take steps now to help protect your portfolio and financial future. Explore your options for gold ownership today. Call Advantage Gold at 1-800-341-8584 to get started today.Tags: advantage gold, currency debasement, debt, gold, government shutdown, tax cuts, tax revenue, trump administration