Washington to Erode $40 Trillion Debt via Inflation, Gold as Shield: Jim Rickards

The U.S. government carries over $40 trillion in debt and spends roughly $1 trillion annually on interest. Jim Rickards argues Washington will not repay it but instead rely on inflation to shrink its real burden, mirroring the post-WWII period when nominal GDP expanded through rising prices. The 10-year Treasury yield reached 5.34%, its highest level since 2002.

Rickards notes that 3% inflation halves the dollar's value in about 24 years, hurting those on fixed incomes most. Russia's case illustrates gold's strength: with $300 billion in reserves frozen, its domestic gold delivered $150 billion in gains as prices climbed from $1,900 to over $4,160 per ounce.

Central banks set a price floor for gold, and Rickards urges holding physical metal rather than futures or ETFs to guard against currency erosion.