Sprott and Friends Headed to the Basement

Sprott, a Canadian wealth manager and hedge fund has given a rather gloomy assessment of the state of the American government's financial health. 

"In case you failed to catch it in our previous articles this year, we thought we’d state it outright for our readers this month: the United States Government is on a trajectory to default on their obligations. In its current financial condition, it will not be able to fund its forecasted budget deficits and unfunded Social Security and Medicare promises on top of its current debt obligations. This isn’t official yet, and we don’t know when the market will react to it, but there is no longer any doubt about the extent of their trajectory. There simply isn’t enough taxing power, value creation or outside capital willing to support its egregious spending."

Oh dear, that's not good.   Read it, as much of what is says is very interesting, if not enjoyable.

Comments

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