| Ripple Effect — June 27, 2025
Last week, the total debt in the U.S. topped $37 trillion.
Of course, that debt doesn’t include what’s owed on transfer programs – think Social Security and Medicare. The real numbers without the accounting gimmickry are far worse.
But the U.S. isn’t alone. Surging debt levels are a global issue. Total world debt has topped $300 trillion:  Total debt has been soaring at an unsustainable rate for nearly 30 years. That makes America’s debt look piddling by comparison – a mere 12.3% of the total. It’s a global crisis waiting to happen.
But that’s not the issue as the Senate debates the “big, beautiful bill” ahead of the 4th of July holiday weekend.
After a spike during the pandemic, U.S. debt-to-GDP ratio is still over 120% – and climbing again.
Historically, no country that crossed the 130% debt-to-GDP ratio has been able to survive long enough to “grow its way out” of a debt crisis.
Therein lies the tension. The Trump Reset formula requires an extension of his first-term tax cuts, low and fair tariffs… and low interest rates.
It’s a tall order. And why he’s pushing to get economic growth on the table before the mid-term elections in November 2026. (To understand it all, we’ve prepared this research: Trump's Great Reset).
~ Addison P.S.: High debt is a feature of “fiat” money systems. Money printing leads to higher inflation and more money printing. Which, in turn, creates more inflation.
You get the idea. It’s a doom loop.
As you know, that’s why we like gold. Gold holds its intrinsic value in the face of inflation. You can read our report on gold’s historic rise here.
That said, with the stock market back to all-time highs and many headline fears disappearing, gold is likely to take a breather this summer… and give you a chance to buy in at a discount. Keep an eye out. As always, your reader feedback is welcome: feedback@greyswanfraternity.com (We read all emails. Thanks in advance for your contribution.)
How did we get here? Find out in these riveting reads: Demise of the Dollar, Financial Reckoning Day, and Empire of Debt — all three books are now available in their third post-pandemic editions. You might enjoy one or all three. 
(Or… simply pre-order Empire of Debt: We Came, We Saw, We Borrowed, now available at Amazon and Barnes & Noble or if you prefer one of these sites: Bookshop.org, Books-A-Million or Target.)
Please send your comments, reactions, opprobrium, vitriol and praise to: feedback@greyswanfraternity.com |
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