Notably, as Argentina's Milei and others have demonstrated, major cuts in government spending can restore real economic growth and make it possible to reduce debt loads even in chronic basket case economies. Trump and DOGE are now undertaking a similar effort on behalf of the US, albeit in much less dire circumstances.
In a projected global debt reckoning, the United States has a privileged position due to our political stability, immense productive capacity, technological skill, cultural appeal, and global military power. These underpin the dollar's role as the primary global trade and reserve currency. Indeed, much of the dollar creation and borrowing that the US has engaged in over the last fifty years was spurred by the global demand for dollars and associated US government debt instruments.
The bottom line: the global debt bomb is likely to be gradually defused, country by country, year by year. As that happens, a general crisis will be avoided and the demand for dollars and US government debt will continue to benefit the US. That will provide the opportunity to put our own finances in better order.
As for central bank gold buying, it is more a hedge than a sign of impending doom. Living in Florida and having experienced many hurricanes, you lay in supplies and prepare for the worst but, in the event, most hurricanes are not very bad. So also with warnings of general economic crisis. Most such crises never quite materialize even though people, countries, and central banks take precautions.
Armstrong has predicted 15 of the last 2 crises.
The spending won’t stop.
The debt cannot be paid, nor traded.
This cannot end well, and people who think that Armstrong is just wrong aren’t thinking past that short-sighted little quip.
It doesn’t matter if Armstrong is right or wrong, because the spending won’t stop, and the debt cannot be paid, nor traded.
It’s a matter of simple mathematics.