It looks like the Federal Reserve has lost control of the debt crisis in the United States, thus setting our nation on the path to ultimate economic collapse, which we have been warning about like street prophets decked out in sandwich boards that read “The End Is Nigh” for years on end. And yet, it feels like the warnings, which have come from on high and from down low, have largely fell on deaf ears. Our elected officials have done nothing to prevent this disaster. In fact, the policies the current administration have passed are what jump started the economic apocalypse.
As AJ Monte stated in a recent piece for ZeroHedge, our mountain of debt has now reached an unsustainable level as it is now $7.6 trillion in interest-bearing public debt that will officially mature in 2025. That figure is 31 percent of all outstanding government debt, adding what Monte calls upward pressure on our rates. You don’t have to be an economist to know this is bad news.
“Even as the Federal Reserve lowers rates, the market is setting its own pricing. As borrowing costs rise, the debt market is sending a clear signal that there is an obvious loss of confidence in the Treasury’s ability to find enough buyers for the surge of fresh debt,” Monte writes in the article, going on to add, “While the hedge funds and financial elites are attempting to control the market dynamics, the economic indicators, combined with the overwhelming debt burden and continued government spending, are leading us into what could be the greatest financial crisis our country has ever known.”
Monte notes the vast majority of investors can sense disaster is on the way. They aren’t likely to speak the doom and gloom out loud, mostly because they are afraid that by expressing this fear they could trigger the market crash that is keeping them up at night. But as things continue to grow worse economically speaking and the collapse becomes more easily spotted, fear will grow anyway and at some point, investors will panic. And that day draws ever nigh.
Those who are without a plan will unfortunately suffer the greatest losses, however, those who are planning ahead, could very well make an absolute fortune. The good news is there’s still enough time for you to enhance your financial literacy.
Diversifying assets is critical during a financial crisis. Real assets like gold and silver, as well as agricultural commodities like cocoa, coffee and sugar, should be considered as hedges against a collapsing debt-based system. In my opinion, silver is one of the best tools for preserving wealth because demand for this precious metal is twofold. While many investors see silver as a safe place to park money as a hedge against inflation, the demand for silver rose by 7% in 2024, and is expected to outpace gold in the years ahead. According to the Silver Institute higher demand is also expected from the automotive sector and rapid adoption of AI technologies around the globe.
You might also want to explore more sophisticated option strategies, in the form of Diagonal Calendar Put Spreads. Do not let the option markets intimidate you. Yes, it will take a little time to learn how to incorporate such strategies, but you can start off with the most basic, and conservative, strategies and grow your positions as you become more familiar with spread trading. In a nutshell, Diagonal Calendar Put Spreads involve buying longer-term LEAP Puts on the long side while selling cheaper far out-of-the-money puts to help pay for the options on the long side of the spreads. This sets us up to profit when the markets eventually begin to move lower.
Right now is the time to make your preparations for the inevitable. Create a food cache complete with all the necessities you’ll need if things go from bad to worse to hell on earth. Don’t waste time. Putting it off and hoping for the best could result in unpreparedness.
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