Trump Will Grow US Debt Exponentially

When gold moves strongly based on events, the move is seldom sustained. Those moves are mostly speculative and in the paper market. Sustained moves in gold are due to the debasement of paper money and nothing else. Since the creation of the Fed in 1913, all major currencies have declined 97-99% against gold. The US has not had a real budget surplus since 1960 so the trend is very clear and unlikely to be reversed any time soon. Since 1971 when Nixon abolished the gold backing of the dollar US debt has grown by an average of 9% per year. This means that US federal debt has doubled every eight years. And Obama is no exception. He duly complied with the trend of exponential debt increases and doubled US debt from $10 trillion to $20 trillion. It took the US 232 years to go from zero debt to $10 trillion and Obama managed to double it in just 8 short years. What an achievement!

Neither Clinton nor Trump had any intention of breaking the trend of massive debt expansion. Trump’s proposed tax reductions and major infrastructure investments will add over $5 trillion to the debt. But with this expansive policy, there is absolutely no reason why debt in the next four years will grow by less than the 9% annual average. This would take the US debt to at least $28 trillion by 2021.

Trump Will Grow US Debt Exponentially