Inflation is crushing the American consumer. Since the pandemic in March 2020, we’ve seen the inflation rate peak as high as 9.1%.<\/p>\n
It’s decelerated since then. But that just means prices continue to rise at a slower rate.<\/p>\n
That’s why I believe people are buying gold bars like hotcakes… They’re trying to protect their purchasing power.<\/p>\n
And who can blame them? Especially since I believe things about to get worse.<\/p>\n
Just take a look at the chart below. It shows the amount of U.S. debt.<\/p>\n
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![\"Image\"](\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202311\/20231107-JMU-pm-01.png\")
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For the first time ever, our government is $33 trillion in the hole.<\/p>\n
Friends, this is a truly unfathomable number.<\/p>\n
Just to give you some context, 1 trillion one-dollar bills stacked on top of each other gets you about a third of the way to the moon.<\/p>\n
Thirty-three trillion dollars is not “just a number.”<\/p>\n
It’s the financial burden that you, your kids, your grandkids, and your kids’ grandkids will have to shoulder.<\/p>\n
Now, from 2008–2021, this out-of-control debt wasn’t a big problem because interest rates were close to zero.<\/p>\n
So the interest we paid on that massive debt pile wasn’t a big deal.<\/p>\n
But interest rates are zero no more.<\/p>\n
To combat inflation, the Federal Reserve has jacked up rates to 5%. JPMorgan Chase CEO Jamie Dimon believes they can go as high as 7%.<\/p>\n
At 7%, the interest payments on $33 trillion would be in the vicinity of $2.1 trillion per year. That’s nearly three times bigger than the U.S. defense budget.<\/p>\n
To cover these debts, the Fed will be forced to print money so it can go out and buy the government’s bonds. It will have to do this because there won’t be enough buyers in the market to cover the amount of new government bond issuance.<\/p>\n
When the Fed cranks up the money printer, it’s diluting the value of all the other dollars in the system. Just like when a company issues too many shares, it dilutes the value of the shares you own.<\/p>\n
The result? The value of the dollars you own will shrink – a lot.<\/em><\/p>\n This level of debt is the endgame I’ve been warning you about… a “doom loop” that tips America over the edge from dollar superpower into dollar collapse.<\/p>\n That’s why I believe so many people are stocking up on gold.<\/p>\n And Costco isn’t the only major player in the gold market. Not even close.<\/p>\n In the first quarter of 2023, central banks added 228 tons to global reserves. That’s the highest rate of purchases seen in a first quarter since the data series began in 2000.<\/p>\n It’s also a continuation of a surge in gold purchases over the past 12 months.<\/p>\n You can see that in the next chart…<\/p>\n <\/p>\n Since January 2020, gold is up 32%.<\/p>\n That may not seem like a lot – especially when stocks like Nvidia are up 193% in one year – but that’s a huge move for the $12 trillion gold market.<\/p>\n Now, I recommended gold as early as 2015 as disaster insurance because I believe everyone should have some gold. And my readers are up 56% on that trade.<\/p>\n But the reality is most of the time, gold is an atrocious investment.<\/p>\n It pays no dividend. It has limited industrial uses. And it can go through long stretches of time where its price goes nowhere.<\/p>\n So that’s why I’m not recommending gold today.<\/p>\n Friends, everything about the economy right now comes back to one thing: inflation.<\/p>\n It’s on everyone’s mind. It enters every conversation.<\/p>\n It’s an economic problem. It’s a political problem. And it’s also a huge problem for your personal wealth.<\/p>\n It’s not a temporary rise due to supply chain issues (although that’s certainly keeping goods scarce)… or the demand for popular items like a PlayStation video game console.<\/p>\n We’re seeing the inflationary impact of trillions of dollars in fiscal stimulus created during the pandemic.<\/p>\n But things are about to get worse…<\/p>\n There’s an unprecedented government event scheduled for the month of November. And I believe it will trigger the final collapse of the dollar and its purchasing power for everyday Americans<\/p>\n![\"Image\"](\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202311\/20231107-JMU-pm-02.png\")
<\/p>\nThere’s a Better Way Than Gold<\/strong><\/h2>\n