By
Jerome R. Corsi, Ph.D.
As the Biden administration moves in for the kill on the Infrastructure Bill and the Reconciliation process, we are likely to see Congress pass another $5 trillion in deficit spending yet this year. At the same time, inflation numbers are continuing to skyrocket as energy costs begin to mount.
That’s the good news.
Next on the horizon is a Biden administration across-the-board tax increase that will likely tank the global economy.
The case for buying gold and silver just became not only compelling, but compelling on an emergency basis. With the Democrats in control and Modern Monetary Theory dictating an unprecedented round of creating and spending of fiat currency, the global economic collapse that is building may make the 1930s Depression look like a Sunday afternoon picnic on a warm, sunny day.
First, let’s review the most recent inflation data. One of the most reliable inflation indicators, the Producer Price Index (PPI), surged again in August to 8.3 percent on a year-over-year basis. This jump is the most considerable annual increase since November 2010. In July 2010, the PPI set a previous record of surging 7.8 percent. The August 2021 skyrocket inflation jump of 8.3 percent made a lie out of Federal Reserve promises that inflationary increases this year are temporary, a surge resulting from the economy beginning to open after the COVID-19 pandemic lockdown.
With winter approaching rapidly and a gas crunch developing in Europe, the oil price passed the threshold price of $80 a barrel last week. Professional options traders have begun buying futures contracts betting oil prices could escalate to $200 a barrel by the end of 2022.
Next, Biden plans to print more fiat currency. House Democrats are pushing for a $3.5 trillion reconciliation procedure that might just pass the Senate even if no Republican votes for it. The $3.5 trillion reconciliation maneuver is a way to slip into law the Biden administration’s 10-year “Build Back Better Act” without having to pass it first. That act involves a 2,465-page bill that seeks to expand the nation’s social safety net and combat climate change.
The Build Back Better Act seeks to fund two years of free community college for all students, regardless of family income, at the cost of $108 billion. The plan allocates $450 billion to provide every family in America with lower expenses for childcare and two years of universal pre-K for 3- and 4-year-olds. There are more billions to extend the child tax credit, increase Medicare, cut drug prices, and pay for family and medical leave. Then $150 billion is allocated to provide “clean electricity” as part of the climate change initiative, creating charging stations for electric cars, and assistance for homeowners to “weather-fit” their homes.
The infrastructure bill wrapped into the reconciliation procedure calls for spending another $1.2 trillion to modernize roads, bridges, and transit systems while expanding high-speed Internet systems and equipping the nation’s Interstate highway stem with a network of electric charging stations. The infrastructure bill includes $21 billion for “environmental remediation to clean up legacy pollution” problems and $55 billion to replace all the lead pipes still in the country’s drinking water systems.
Last week, Treasury Secretary Janet Yellen called to remove the power to control the nation’s debt ceiling from Congress. This move would leave the Biden administration free to increase the U.S. debt to unlimited heights without asking Republicans to approve the deficit spending measures. “I believe it is very disruptive to put the president and myself, the Treasury secretary, in a situation where we might be unable to pay the bills,” she insisted last Thursday in congressional testimony before the House.
On the tax front, the Biden administration wants to raise corporate taxes and the rates in the top brackets for individual taxpayers, increase the “death tax” estate taxes, and force investors to pay taxes annually on unrealized gains and losses in publicly traded assets like stock and bonds.
All this adds up to a formula for an impending economic crash of historic magnitude. The nation has never before driven off the cliff of fiscal spending responsibility by implementing a plan to tax the life out of future economic growth.
With gold still trading at under $2,000/ounce and silver at under $25/ounce, the case for buying precious metals has never been more urgent. The Biden administration is betting our future on the new license Modern Monetary Theory gives a sovereign to print fiat currency without limit. We are all supposed to believe the economic laws that tanked the Weimar Republic in hyperinflation in the 1930s no longer apply.
If you do not feel comfortable with the new round of the Biden administration’s “Voodoo Economics,” the current prices of gold and silver create an emergency buying case that has never before been this compelling.
I highly recommend you contact my preferred gold and silver firm Swiss America Trading at (800) 289-2646 to enter the precious metals market today or visit swissamerica.com/bellinger.
Jerome R. Corsi, Ph.D., together with his wife Monica, is the co-founder of Corstet LLC. His new website, www.Corstet.com, is devoted to telemedicine, economic analysis specializing in gold and silver investing, and annuity marketing. Since 2004, Dr. Corsi has published 25 books on economics, history, and politics, including two #1 New York Times bestsellers. In 1972, he received his Ph.D. from the Department of Government at Harvard University. He currently resides in New Jersey with his family
