Democrat or Republican Makes No Difference – the Party Is Over!

The only commonality in today’s U.S. political parties is extremism, which has always been present, just not exclusively in Cosco-size. Traditionally, the Republican Party pushed for and catered to a business-backed, trickle-down, growing economy, focused on cutting red tape, government spending, and taxes in the process. Meanwhile, the Democratic Party promoted spending, particularly on social programs, and happily promoted tax increases to fund the programs. Yet the last President to make it through a calendar year without adding to the national debt was Clinton and Trump is on the verge of becoming an official spend-aholic!

For the first time in our history, we added $1 trillion to the national budget deficit, in a little over ten months. Now, the Treasury Department’s Bureau of Fiscal Service reports that the federal deficit for Q1 of its fiscal year, which began in October ’18, was $310 billion. That’s a 77% increase over the same period in the previous year and the biggest problem is not just the dramatic increase, but the fact that it is occurring at a time when the economy is still expanding. In Q4, the Gross Domestic Product (GDP) grew 2.6%. A deficit, let alone a mushrooming deficit during a time of economic growth is unprecedented in recent U.S. history, but it’s never good news and it can certainly be more than just a little dangerous.

President Trump has appropriately identified the Federal Reserve as one of the swamps that needs to be drained, because as I’ve been reporting for more than a year now, they have been and continue to be useless. It takes at least a 5% interest rate drop to offset the onset of inflation and the Fed had no clear plan on gaining that cushion by the time they started increasing rates. Now they are stuck in the middle and today’s news is reporting that it’s a 50/50 whether the next Fed action will be another rate increase or like EU banks, a rate reduction. Either way, the entire exercise has been futile and never had a chance to provide strategic relief.

Political parties are becoming more fragmented than ever before and there is no reason whatsoever to believe that the trend will change any time soon. The domestic and global economies are slowing and analysts are saying indications point to a trend could continue for ten years. An oversold stock market, inverting yield curves, and potential Fed activity reversal are just some of the reasons to stock up on gold, silver, and other precious metals. Economic trouble of great magnitude is brewing and the time to protect your assets is upon us. Call the award-winning experts at American Bullion now! (800) 653-GOLD (4653).