Veteran investor, Arthur Richards Rule IV, better known as Rick Rule, is the latest expert to sound the alarm on the long-term stability of the U.S. Dollar, warning that decades of unchecked federal spending and unfunded liabilities could erode the greenback’s purchasing power over the next decade.
What Happened: Speaking with Kitco News over the weekend, Rule says that the U.S. Government’s $30 trillion on-balance-sheet debt is only the beginning.
He highlights the $100 trillion in unfunded promises, such as Medicare, Social Security, and federal pensions, which takes the total liability burden far higher, and closer to the nation’s total household net worth at $141 trillion. This only leaves a $11 trillion buffer against household wealth, which he believes is closing quickly.
Both categories of liabilities are growing by around $2 trillion per year, Rule says. At that pace, the remaining margin …