By Areena FxFinancial experts Mike Maharrey of Money Metals and Greg Weldon, CEO of Weldon Financial, discussed the current state of the global and U.S. economies, focusing on various factors influencing them, including the recent surge in gold prices and geopolitical risks.
Their conversation began by analyzing the reasons behind the recent rise in gold prices, attributing it to factors like expectations of Federal Reserve rate cuts and concerns about currency devaluation and geopolitical tensions.
Weldon highlighted the geopolitical risks stemming from actions by Russia and China, underscoring the immense global debt level, which surpasses $307 trillion, and its implications.
They also delved into domestic issues, such as misleading U.S. employment data and soaring consumer debt levels, including credit card debt exceeding one trillion dollars and interest rates reaching unprecedented levels.
Concerns were raised about the federal government’s borrowing habits, with the fiscal 2024 deficit nearing a trillion dollars within a few months, leading to discussions about the sustainability of current fiscal policies and their impact on future generations.
The interview addressed the contentious topic of social security, with criticisms levelled at its unsustainable structure, likening it to a Ponzi scheme where younger generations fund retirees’ benefits.
Weldon expressed apprehension about the emerging trend of higher interest rates, which could challenge economic stability, emphasizing the need for prudent management.
The discussion also included questions and answers focusing on crucial economic and geopolitical issues, including the recent gold rally, de-dollarization, the U.S. job market, consumer debt, government borrowing, and the future of social security.
In conclusion, the interview emphasized the importance of understanding broader economic and geopolitical factors beyond immediate market fluctuations, highlighting gold as a stable investment option amidst uncertainties in the global economy.