The United States treasury department is planning to borrow trillions of dollars over the next few months, at least $3 trillion by June of this year to pay for the coronavirus costs and to fund the historic stimulus waterfall that just took place over several weeks.
Thanks to low interest rates, finance leaders indicate that they aren't worried about all of the spending that has taken place. They say that they want to take advantage of refinancing their debt. But if they are concerned about purchasing power for the average person then perhaps they should be worried.
It's expected that all of the stimulus will eventually work to further erode purchasing power, adding to the debt levels that are already in the trillions.
At the end of the day it is the people who are forced to pay for these bailouts, even though they might not have been asked who they thought was worthy of such a bailout. If it is their money going to pay it then they should be consented before those funds are given out, shouldn't they? Billionaires and multi-million dollar companies probably wouldn't make the cut with many.
But this might be good news for precious metals, gold and silver, as well as cryptocurrency, as those in power continue to make moves that arguably weaken the economy and fuel the further decline of purchasing power that has already lost more than 90 percent.
Build up the debt and then ask questions later on whether that was a good idea or not, doesn't seem to be a healthy approach to solving economic problems.
The United States previously had taken 200 years for the U.S. national debt to finally reach $1 Trillion, but things are quite different because now the government has recently added $1 Trillion of debt in just one month.
The total debt that they are facing now is $22 trillion and no clear plan on how or when that might be paid back. Couple that reality with the fact that there are finance figures out there, and various reports issued, that are also peddling the idea that it does not ever need to be paid back and things will be just fine.
But is $22 trillion+ in debt a potential problem? It just might be.
For an institution that has been crafted with the intention of protecting the US dollar, the Federal Reserve, it has seemed to do just about everything but that.