“[T]he real problem is not the dysfunctional process that’s getting all the headlines, but the dysfunctional substance of governance. Congress and the president will work out the debt ceiling issue, probably just in the nick of time. The real dysfunction is a federal budget that doubled in 10 years, unprecedented deficits as far as the eye can see, and a national debt (more accurately, gross federal debt) yet again bursting through its statutory limit of $28.4 trillion and soaring past 120 percent of GDP, a level previously reached only during World War II.”
USAGOLD note: The problem is not one of dealing with a particular incident (and its implications) or even the outright combat between America’s political parties, but the political culture that allows it. Boaz, the executive vice president of the Cato Institute, gets directly to the heart of the matter in this essay. That culture has made gold a go-to portfolio inclusion over the last several decades, and from the looks of thinks, things are getting worse not better – particularly when one considers the Biden economic agenda.
Sources: St. Louis Federal Reserve [FRED], U.S. Bureau of Economic Analysis