U.S. national debt is nearly $30.9 trillion and continues to rise
One local financial expert recommends investing in precious metals amid economic uncertainty.
LA CROSSE (WKBT) — According to the U.S. National Debt Clock, the United States’ debt is more than $30.87 trillion and continues to rise.
The U.S. national debt amounts to nearly 123% of U.S. gross domestic product, according to the St. Louis Federal Reserve Bank.
Mike Klug has worked in financial services for more than 42 years as an insurance broker and consultant.
He predicts that the Federal Reserve’s move to raise interest rates could lead to a recession because it could lead to a reduction in consumer spending.
“It’s going to hurt that area big time, that will be what throws us into a nasty recession,” Klug said.
Both on Thursday and back in late August, Federal Reserve Chairman Jerome Powell said the U.S. would continue to keep prices stable with elevated rates.
“The federal open market committee’s overarching focus right now is to bring inflation back down to our 2% goal,” Powell said in a speech on Aug. 26.
Klug said that despite a low unemployment rate, high inflation is a symptom of an even sicker economy.
“We’ve stretched the rubber band as far as we could stretch it and now we’re going to pay for it,” he said.
Klug added that in order to prepare for a possible recession, people should seek to pay down whatever debt they have and to also invest in precious metals such as gold and silver.
He said silver is a better option because it’s less expensive.
“Silver is the most undervalued metal, one of the most undervalued commodities,” Klug added.
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