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Depleting the Reserve

Nearly 10 days ago, I drafted an post explaining the significance of March 15th.

Today is March 13th.

In two days, our government will grind to a 20 trillion-dollar halt. The Federal Reserve currently holds 200 billon dollars in cash. This provides, at current spending rate, roughly 2.5 months before Federal Reserve depletion.

In October of 2015, we were staring down the barrel of a complete government shut down. If you recall, President Obama postponed managing the debt ceiling until after 2016 elections. Fast-forward to March 15th, 2017, and we stare down the same barrel, only it’s grown worse.

This imminent debt-ceiling crisis is not the only concern.  Our government looks to raise interest rates yet again, adding fuel to an established fire.  Which, in turn, effects all investments.

Gold and Silver

Favorable conditions have risen for gold and silver prices to rise. Consider this figure:

gold and silver consulting mn

In US Dollar terms, gold is 36% away from 2011 all-time highs. Silver is on a screaming sale, down approximately 65% from its 2011 high.  Yet, the immediate future could present a drastic rise in prices.

Watch out in the upcoming days and months. We may need to fasten our seatbelt for a bumpy ride.