How well are you protecting your assets in an environment of growing debts?

National debts are increasing, and the average citizen may not be aware of the pitfalls of debt. Have you seen the debt of the United States?

Dear readers,

thank you for reading my financial insights through the eyes of a financial advisor. This is just a part of my mission, as I emphasize that information alone is not enough. For a sustained and successful financial future, we need:

1. Discipline,
2. Thoughtful and sound investments, and
3. Active participation from each of us.

Together, we can formulate strategies that will genuinely benefit your wealth.

#Debt #USA

The total U.S. debt has surpassed $34 trillion for the first time in history, marking a 100% increase since 2014.

? 3 months after reaching $33 trillion.

? 2 years after hitting $30 trillion.

? 4 years after reaching $24 trillion.

Currently, annual interest on the U.S. debt amounts to $1.05 trillion, or $2.87 billion daily.

This debt balance exceeds the combined economies of China, Germany, Japan, India, and the UK.

For a possibly amusing perspective, let's take a humorous look at the U.S. debt during the Clinton administration in the year 2000 when it stood at $5.7 trillion, 23 years ago.

#Gold #Trend

We are in the third and final phase of the gold bull trend since american president Nixon closed the gold window in 1971. The continuation of the bull trend will become evident when the price again exits the consolidation range (rectangle), as seen clearly in the past. The chart highlights the previous bull trend at the beginning of the millennium. Considering current geopolitical tensions and emerging monetary changes, such a scenario seems most likely. The "fiat" monetary system is running out of time, and the price of gold seems to be indicating this.

#Recession #GoldStandard

The severity and duration of recessions have decreased since the abandonment of the gold standard by the U.S. Federal Reserve. The abandonment of the gold standard signifies a transition from a system where the value of currency was directly based on gold reserves to a more flexible system without a direct link to metals. This change allows central banks greater freedom in shaping monetary policy, including printing money and controlling interest rates, aiding in crisis management and economic growth stimulation. The abandonment of the gold standard also eliminates the need for gold reserves to support the currency's value, providing more flexibility in managing the currency system. However, this can bring challenges such as increased volatility in currency markets and potential inflation risks.

Let's take a closer look... Since 1987, then Federal Reserve Chairman Alan Greenspan created a new strategy by printing money at the first sign of trouble and removing the word recession from the business cycle, as there was no longer a need to support newly printed money with gold. This strategy has been successfully employed by every Fed chairman from Alan Greenspan to the present. Printed money enables the government to continue fiscal profligacy without needing to balance budgets. It distorts the business cycle, preventing the system from clearing excesses.

#Stocks #Gold #USA

U.S. stock prices are currently perceived as highly valued. Is this due to genuine growth fundamentals or more to currency devaluation or something else? Comparing U.S. stock levels with the current price of gold, we also observe that stocks are highly valued compared to gold. This is reminiscent of the early 1970s.

Playing with the idea that the '70s and the beginning of this millennium marked the beginnings of the previous two commodity trends, where the rise in the price of gold also heralded growing values of commodities. At the start of this scenario, gold typically outperforms the overvalued stock market, offering a role as a safe haven for value.

Being informed about financial events is not enough. Only with the protection and optimization of our own assets in practice will we be well-prepared for the future. Until then, we can only be silent observers and "victims" of the financial system in which a place as "losers" seems predestined for us.

Let's not be among them!

Best regards until next time,

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Peter

The "Financial View by Peter Herman" newsletter does not constitute investment advice. Its content does not represent recommendations for buying or offering to buy but aims to inform you about important information that I personally consider significant. I am available for all advice and suggestions through individual consultations or via email at [email protected].