Visualizing Gold Price And US Debt (1970-2023)

07-05-2023 • Zero Hedge

Over the past five decades, its price has been closely intertwined with concerns surrounding the growing U.S. public debt.

In the graphic below, Visual Capitalist's Bruno Venditti, using data from In Gold We Trust and the Federal Reserve Bank of St. Louis, explores the relationship between gold price and the U.S. national debt.

A $31T Government Debt

The U.S. national debt is the amount of money the federal government has borrowed to cover the outstanding balance of expenses incurred over time.

1 Comments in Response to Visualizing Gold Price And US Debt (1970-2023)

Comment by PureTrust

Entered on: 7/5/2023 2:07:56 PM

You have to understand US debt before you can understand any of this. --- After a borrower signs the promissory note on the loan he gets, and trades it to the bank for the loan money, the bank monetizes the promissory note. It sells the note usually for a discounted rate. Besides this, the borrower usually repays the loan, as well, over the years. So, what does the bank do with the money that it gets from monetizing the promissory note? With all this money, there should be no bank failures at all! Or does the bank pass this money on to the Federal Reserve Bank, who passes it on to its owners? Now we are beginning to see why the owners of the FED can't help but get richer and richer... and why we have such a high rate of inflation when they spend the money around the world.

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