We have a spending problem

After two days of government closure, the White House and Congress are negotiating when and how to end it, with bargaining on both ends of the isle. It would appear as if democrats want more spending, and the President and his team want some of the cuts they were not able to perform during DOGE, but what it’s clear is that this is an opportunity to negotiate hard and create some leverage for the mid term elections. In the meantime, as you can see in the chart below, the U.S. national debt has increased, since June 3rd when the debt ceiling was lifted, by $1.7Tn!! If we were to annualize this figure, we will reach the full $5.1Tn, the full limit that was raised, in just one year. And this is in the absence of (1) wars, (2) recessions or (3) natural disasters/pandemics. The US government continues to be unable to control spending, which will inevitably bring inflation. AI will not come soon enough to take us out of this mess. No wonder gold and silver keep making new highs. We have a spending problem.

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