• Washington is squirting red ink out from every pore.  The budget year is half over, finishing with a deficit of more than a trillion dollars.   This will end badly. We have been sounding an alarm in these posts about US debt and the fear that it would get away from us.  A few recent examples: Another Ominous U.S. Financial Update Time to Take a Look at the U.S. Fiscal Situation! Uncle Sam’s Credit Score Keeps Falling We believe the price of gold is confirming that Washington’s debt is every bit as bad as we have said. Our opinions don’t have the force of law, but to us the US national debt is a matter of criminal negligence.  Washington has been indifferent to the debt as it grew, and now it is too late:  the national debt has gotten away from us! From the Wall Street Journal:  The Congressional Budget Office reported Monday that the federal budget deficit for the […]

  • First the NY Times!  Now Chase Bank? If you aren’t panicking about the US debt picture, you may not be paying attention! Now even the most establishment of establishment figures are starting to show signs of panic, Including the most establishment banker of America’s most established bank. Jamie Dimon is the chairman and chief executive officer of JPMorgan Chase, the largest bank in the US.  They like him a lot.  He’s been in that role since 2005, a job that has made him a billionaire.   Maybe Dimon isn’t panicked, but he sure is worried that we are at the brink. “It is a cliff. We see the cliff. It’s about 10 years out.” The US national debt is currently more than $34 trillion.  Throughout its history, US debt has averaged 30 percent of total US economic output. Today, it is 123 percent, more than four times the average. It is more than the entire annual productivity of China, Japan, […]