Spending, and still more spending | CMI Gold & Silver
Thursday, June 1st, 2023 MST

Production and availability of certain products is limited, please consult your sales agent for details on product availability and delays.

Gold Product Prices Silver Product Prices Platinum Palladium
Questions? Call Us


Mon-Thur 7am - 5pm PST Fri 7am - 2pm PST

Spending, and still more spending

Both parties are happy with the spending deal reached Tuesday night between the Trump administration and the Pelosi-controlled House.  The Trump administration will see defense spending going to $750 billion while the Dems (and, admittedly, some in the GOP) will see an equivalent increase in domestic appropriations.

What not discussed was that outyear budget deficits will be massive—projected to be $17 trillion over 10 years, and that’s if there is not recession in those 10 years, which is highly unlikely.

Based on the Treasury’s latest estimate, spending will rise from $4.108 trillion in FY 2018 to $4.529 trillion in FY 2019 (ending this September). That’s an increase of $421 billion, or 10.3%, the highest percentage gain since the Obama “shovel ready” stimulus budget of FY 2010.

However, revenue is projected to rise only $109 billion—from $3.329 trillion last year to $3.438 trillion this year. The resulting gain of just 3.3% is barely above the year-over-year inflation increase of about 2%, and makes a mockery of the theory that tax cuts pay for themselves and that you can “grow your way out” of the deficit.

Spending is out of control in D.C., and since the dollar became unredeemable in gold (1971), there have been three major bullion markets in gold and silver.  Now, deficit spending is locked in for the next ten years, and the Fed appears set to lower interest rates at their next meeting (July 30-31).

Now could be a very good time to buy gold and silver.

2 Responses to “Spending, and still more spending”

Leave a Comment