This is Why NO $50 Silver

Yeah, I already said that. However, the maturity on the debt is very short term. The average is around 4 years, so it's constantly rolling over. And the demand is getting shorter and shorter term, so the problem is compounding. Think of it like an adjustable rate loan with a teaser rate, as 1/4-1/2 of it may come due in any single year. Higher rates will affect the deficit immediately, as hundreds of billions are being financed in any given month.

This is of virtually no consequence. The total global supply of gold only grows at about the same rate as the population. It doesn't matter who produces it, only that the per capita supply is not growing, which therefore yields stable gold-denominated prices. Having honest money trumps every other economic concern.

 

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