Record levels of government debt pose a huge threat to the economy and could see the US heading towards bankruptcy, making gold the best possible choice as a store of wealth says investment expert Yaron Brooke. The bestselling author, who is also a managing partner of an investment firm says that the current level of debt is reaching historic levels and will be impossible to pay off, further making the case for gold.
Speaking yesterday (Thursday) he said, “COVID has shown us that the American people are willing to behave like sheep when the government dictates what they should and shouldn’t do. Also, the government is willing to take on massive powers. We’re seeing the government move systematically towards bankruptcy. Who’s going to pay this debt?
“We are approaching levels of debt we saw in World War Two, but in World War Two, right after the war, we ran surpluses, so we paid it all back. Nobody’s going to run a surplus today. Politically, it’s impossible.”
Brooke says that with high inflation and large levels of debt, economic growth can’t be expected but stagnation can. He added, “[Hyperinflation] is quite unlikely because we know how to deal with inflation, we know how to stop it, it’s just very, very painful. I think what we’re really in for is a very long period of stagnation, maybe combined with inflation, maybe now. One thing we’re not going to see is significant economic growth. I just don’t see good things happening in the U.S. economy. You’ve got massive malinvestment, you’ve got money flowing to the wrong things.
In this situation, investing in gold is the only sensible course of action with Brookes saying “You want to be in … gold, because gold actually maintains its value. It’s on an investment as much as it is a store of value.”
Act quickly. Buy gold now.