Deficits grow as borrowing and lending rates diverge, Rick Rule notes

Deficits grow as borrowing and lending rates diverge, Rick Rule notes
Borrowing-lending gap drives deficits higher

Rick Rule comments on the gap between borrowing and lending rates, pointing out that borrowing at 5 percent while relending at 0 percent is a major factor behind the rapid increase in U.S. deficits and taxes.

He suggests that this dynamic is contributing to fiscal pressures as government borrowing costs outpace lending returns.

Rule has previously called for an honest assessment of SSI and long-term entitlement liabilities. In a separate analysis, he discussed monetary destruction and oil shocks affecting gold producers. These earlier comments add context to his recent focus on fiscal pressures from rising borrowing costs.

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