US national debt has moved beyond $40trn, keeping the debt-to-GDP ratio elevated at about 123%, versus 52.31% in 1960, 34.68% in 1980 and 55.85% in 2000, in a backdrop of “higher for longer” rates that raises servicing costs. Over the past decade, US M2 has expanded by $10trn to $23.34trn, with the sharpest jump in 2020 during the Federal Reserve’s quantitative easing (QE) response to the pandemic shock. The text links persistent budget deficits to rising debt and, in turn, to growth in liquidity conditions.
Implied Precious Metal Values and Ratios
Using figures cited from the US Debt Clock, the implied prices are $11,969 per ounce for gold and $1,515 per ounce for silver, described as 11,969 dollars per ounce of gold and 1,515 dollars per ounce of silver. It also cites a paper-to-silver ratio of 406 and a paper-to-gold ratio of 153.
Historic Housing Valuation In Ounces
Housing comparisons frame volatility: with a median US house price near $400,000 and silver at $60/oz, that equates to 6,667 ounces; earlier ratios are 2,000 in 1980, 40,000 in 2000 and 5,000 in 2011. For gold, the house-cost measures are 128 ounces in 1980, 630 in 2000 and 118 in 2011, based on gold at $500, $270 and $1,700 respectively.
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