Money Metals Podcast - If Dollar Is Best House in Bad Neighborhood, That’s Still Not Good

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Even as the U.S. hit its statutory debt limit last month, the deficit spending continues. The Obama administration has congratulated itself for shrinking the deficits over the past few years. Yet the budget deficit widened slightly in the first half of fiscal year 2015 to $439 billion. And it’s projected by the Congressional Budget Office to hit $1 trillion in the next decade.


Republicans may talk a good game about being more fiscally responsible. But the four biggest components of the federal budget are politically untouchable – those being Defense, Social Security, Medicare, and interest on the debt. In reality, there’s little Republicans will be willing to do besides nip around the edges of relatively small programs. The last time Republicans had control of Congress and the White House, they didn't even do that. They actually increased discretionary spending.

Make no bones about it, America’s debt crisis will grow more acute regardless of who wins the White House in 2016. And eventually, the debt crisis will morph into a currency crisis. Holders of dollars stand to see much of their purchasing power wiped out over time. And no other national currencies can be counted on to be safe havens from a dollar collapse. In a currency crisis, you want to be holding the soundest money available: physical gold and silver.