Profit Confidential Weighs in on Gold Mining Stocks Becoming Even More Attractive as U.S. National Debt Levels Soar
Profit Confidential comments on U.S. national debt levels and why they will make gold mining stocks more attractive.
New York, NY, United States – November 2, 2015 /MarketersMedia/ —
Profit Confidential (www.ProfitConfidential.com), an e-letter of Lombardi Publishing Corporation, a 29-year-old consumer publisher that has served over one million customers in 141 countries, is weighing in on the growing U.S. national debt levels. Profit Confidential is also commenting on why the debt levels will make gold mining stocks more attractive to investors.
“The U.S. national debt is quickly rising to unsustainable levels. The U.S. national debt currently stands at $18.15 trillion, but in 2014, U.S. gross domestic product was $17.0 trillion. That means that American has more national debt than the economy generates each year,” says economist and lead contributor Michael Lombardi. “Looking ahead, the U.S. government expects to incur a budget deficit each year until at least 2025. And when the government incurs budget deficits, it must borrow, further raising the national debt.” (Source: “The Daily History of the Debt Results,” TreasuryDirect.gov, October 27, 2015; http://treasurydirect.gov/NP/debt/search?startMonth=10&startDay=16&startYear=2015&endMonth=&endDay=&endYear=.)
Between 2016 and 2025, the Congressional Budget Office (CBO) expects the U.S. government’s budget deficit to total $7.0 trillion. These forecasts do not factor in special or extraordinary events like natural catastrophes, wars, defaults on student debts, or helping out state-level governments. Based on conservative estimates of the CBO, the national debt will swell to at least $25.0 trillion in the next 10 years. (Source: “Changes to CBO’s Baseline Since March 2015,” Congressional Budget Office web site, August 25, 2015; https://www.cbo.gov/sites/default/files/114th-congress-2015-2016/reports/50724/2015Update_AppendixA.pdf.)
In the U.S. government’s 2015 fiscal year ended September 20, 2015, the interest payments alone on the national debt was $400 million; that was on an interest rate of just 2.2%. As inflation rises over the next 10 years and rates assume a pre-financial crisis level of approximately four percent, the U.S. will be paying $1.0 trillion annually in interest costs. The $25.0 trillion current U.S. national debt projection figure could expand to $35.0 trillion, which is 200% of the country’s current gross domestic product.
“Based on the government’s own predictions, our national debt in 10 years will be 55% higher than it is today. My prediction, however, is that the U.S. national debt could be close to 100% higher in 10 years than what it is today,” Lombardi concludes. “How could the U.S. dollar remain strong under such a scenario? It won’t. The ballooning U.S. national debt is one more reason why the shares of quality gold mining companies are so attractive today.”
For more information on Profit Confidential, visit www.ProfitConfidential.com.
Founded in 1986, Lombardi Publishing Corporation, which has served over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more information on Lombardi Publishing Corporation, visit www.LombardiPublishing.com.
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