The US Sovereign Debt Crisis has Begun
Heresy Financial: 7-21-2023
We all know that Rome was not built in a day, but it did not fall in a day either. The truth is the collapse of empires is rarely swift. In fact, most often in world history, the failure of a global power takes, at minimum, years, most often decades, and sometimes, as in the case of Rome, centuries.
But the fall of a great regime is always triggered by a fiscal crisis, specifically a sovereign and debt crisis.
When the out-of-control spending must continue to increase to pay for the over-indebtedness, the over-indebtedness must then continue to increase to fund the out-of-control spending. And unfortunately, this is the exact position that the United States finds itself in today.
Timecodes
0:00 Bankruptcies Now vs Then
0:50 The Deficit
5:04 The National Debt
7:06 The Debt Interest Rates
11:49 Reverse Repo
18:15 What Happens Next
It’s Not Just the U.S. Dollar…It’s the Death of Everything Warns Lynette Zang
Stansberry Research: 7-21-2023
The U.S. dollar has been under attack this year as foreign adversaries have shifted away from the currency in an effort to unseat the dollar’s status as the world’s reserve currency.
Today, Daniela sat down with Lynette Zang, chief market analyst for ITM Trading. Lynette argues that the U.S. dollar is on a path toward losing its status as the king of global currencies.
She says, “There is absolutely zero doubt in my mind that the U.S. dollar is losing its position as the world’s reserve currency, but I don’t really think that it will be a BRICS currency, any individual country, or a smaller group of countries that would take over that role.”
Lynette also believes a recession is inevitable as the impact of the Fed’s aggressive rate-hike policy gradually sets into the economy. “We are just now starting to experience the lag effects of those rapid rate rises that came in 2022 through Q1 2023.
We haven’t yet fully felt the impact,” she asserts. Lynette concludes by encouraging investors to explore the precious metals space in order to uncover safe-have assets. “There are opportunities, but you need to be in the right place at the right time holding the right asset so you can have that wealth transfer your way for a change,” she explains.
00:00 Lynette Zang introduction
3:01 The latest on a BRICS currency
5:30 “We will see a gold backing again”
7:27 Countries starting to bring their gold back home
9:41 U.S. dollars’ “best days” are numbered
12:41 Fed’s battle with market confidence
14:07 Yield curve is a recession warning
15:16 Is the banking crisis over?
18:43 Lynette’s advice to investors
