Today’s Currency Crisis Explained with Charts

Author and gold expert John Rubino says we’re crossing some important economic thresholds and we are doing so with increasing frequency.  

And that is “ominous,” says Rubino.

With a tip of the hat to him and a link to his Substack, here are some of the charts he provides to make the gravity of things clear.

It is widely understood that inordinately high debt compared to productivity is a warning of trouble ahead.

First, consider this chart of the debt/GDP ratio from 1996 –  2010:

Now, take another look at the same ratio updated to today.  The debt was just over 90 percent of GDP in 2010.  Today it is 120 percent of GDP:

Today the interest on the national debt exceeds everything except for Social Security.  It is no greater than the defense budget.

This year, says Rubino, interest and entitlement spending will exceed tax revenue.  How will the government pay for war, infrastructure, and everything else?  It will have to borrow the money.  

“Future historians will tell us which thresholds were, in retrospect, signs of a financial death spiral. But it’s a safe bet that some of the above will be on the list,” he says.

And we will add, that based on historical precedents, those who own gold and silver will survive the financial death spiral better than those who don’t.