The United States national debt has breached $38 trillion. As central banks persist with aggressive monetary expansion, a structural shift is underway that threatens the purchasing power of the dollar. This is not merely inflation; it is The Great Debasement.
For investors, the question is no longer about short-term market timing but about long-term preservation.
The Mechanism: "Printing Money"
Debt monetization occurs when a central bank purchases government debt using newly created fiat money. This permanently expands the monetary base, diluting the value of every existing dollar in circulation.
For the saver, this manifests as a "hidden tax"—a steady erosion of purchasing power.
The 2025 Reality: A Structural Shift
The fiscal situation in late 2025 has moved beyond historical norms.
The Debt Load
Total gross national debt stands at approximately $38.09 trillion. We are seeing the fastest accumulation of debt outside of a pandemic era.
Debt-to-GDP
Projected to reach 125.40% by the end of 2025. This creates a scenario of "fiscal dominance" where the government cannot normalize rates without triggering a crisis.
The Strategic Case for Gold
In an environment of ongoing debt monetization, gold serves three critical functions:
- Zero Counterparty Risk: Unlike bonds, gold's value is not tied to a government's promise to pay. It remains solvent even when the issuer is not.
- Purchasing Power Preservation: As the monetary base expands, fiat currency diminishes. Gold historically maintains its real value.
- Institutional Validation: Central banks are accumulating gold reserves at a rapid pace, driven by the same concerns regarding currency debasement.
Do Not Leave Your Retirement Exposed
Do not leave your retirement exposed to a $38 trillion debt experiment.