With a few months remaining in his presidency, Joe Biden is ramping up efforts to advance his ambitious agenda. This push includes a significant increase in federal spending that has alarmed economists and financial experts, raising concerns about its potential to destabilize the U.S. economy and devalue the dollar.
Biden’s Final Months: $1.6 Trillion to Spend
At the heart of Biden’s economic plan is using about $1.6 trillion in federal funds left over from earlier projects. Even though this has already added $6.4 trillion to the national debt, the Biden administration wants to spend even more. This strategy, which was first aimed at helping with the pandemic, could now cause big problems for the economy.
A large part of the money set aside for clean energy, climate projects, and semiconductor work hasn’t been used. Reports show that only about 20% of this money has actually been spent.
Senior Clean Energy Advisor John Podesta emphasized that this administration doesn’t plan on letting the funds just “sit there”: “Well, there’s a lot left to do. First of all, that money needs to be deployed.”
Constraints on Future Administration
Even if Trump wins in November, rolling back Biden-era spending projects already in motion will be challenging. According to Douglas Holtz-Eakin, head of the conservative American Action Forum, congressionally created grant programs are legally required to continue. He noted, “While they can negotiate contracts at a slower pace and delay obligating the funds, they are not able to completely halt the process.
The Inflation Challenge and the Dollar’s Precarious Position
The connection between too much government spending and inflation isn’t just an idea; it’s real. According to a study by MIT, federal spending was the main reason for the big jump in inflation in 2022. This poor management of money poses serious risks, not just for the U.S. economy but also for the value of the U.S. dollar globally. The effects can be huge, influencing everything from everyday living costs to the broader global economy.
The Strategic Role of Precious Metals
In these uncertain times, gold and silver have taken on new importance for Americans seeking stability. Financial analysts from Goldman Sachs and J.P. Morgan have strongly endorsed these metals, forecasting significant price increases. Predictions suggest that gold could reach as high as $3,000 per ounce in the next 6-12 months, with silver also expected to experience considerable gains, potentially soaring to $100 per ounce. These metals are not just investments; they are vital hedges against inflation and currency devaluation, offering a dependable haven amid economic fluctuations.
Conclusion
As Biden’s presidency winds down, the aggressive fiscal policies he championed could undermine the very economic stability they were meant to enhance. Gold and silver, with their proven value and resilience, emerge as smart choices for those looking to shield their wealth against the dual threats of inflation and a weakening dollar.
As we observe the unfolding of Biden’s final presidential acts, the clear message for Americans is to brace for potential economic turbulence and consider fortifying their savings with assets that have historically held their ground through various crises. Gold and silver, respected for their enduring value and historical resilience, are more relevant than ever in these volatile times.
Sources:
