Resource investment expert Rick Rule is asking one very important question about a mountain of U.S. debt?
Rule asks, “How on earth are we going to resolve $120 trillion on balance sheet and off balance sheet liabilities before we consider state and local debt and underfunded pensions? My suspicion is we get out of this in one of two kinds of defaults.
A formal default where . . . they say to 64 year old Rick Rule that we made you promises on Social Security, Medicare and Medicaid, but we lied.
We say to holders of U.S. debt where we gave a full faith and credit promise that we lied. Those are official defaults.
That requires telling the truth, and I think that is unlikely. I think we will have a series of unofficial defaults where we devalue the net present value of the obligations, which is a different way of saying we devalue the . . . currency, gradually like we did in the 1970’s. I think that will have the same impact on gold and silver prices.”
On the best thing President-elect Trump can do for America, Rule contends, “If Mr. Trump can roll back restrictive regulation in the United States, we are our own greatest enemy. If he can make the United States great again in the sense he keeps us from competing with ourselves, then we will see a spectacular economic boom in this country.”
Join Greg Hunter of USAWatchdog.com as he goes One-on-One with Rick Rule, President and CEO of Sprott U.S. Holdings Inc.