Published: 2021.07.29. Brook: US is on track for bankruptcy, but gold will help

Brook: US is on track for bankruptcy, but gold will help - Preview

Brook is the Managing Director of BHZ Capital and has authored many books on economics. He also serves on the board of directors of the Ayn Rand Institute and hosts the Yaron Brook Show.
"The US government makes destructive decisions and bears full responsibility for the economic problems in the country," the expert said. The extremely high debt can hardly be repaid: “We are approaching the level of debt that we saw during the Second World War, but then, immediately after the war, we created a surplus of capital, so we were able to pay everything back. No one is going to build up capital stocks today. From a political point of view, this is impossible. "
A direct consequence of high debt and government policies, including tax and monetary policies, is high inflation without economic growth, known as stagflation. However, hyperinflation is not expected in the US. The solution, according to Brook, would be to reduce government intervention in the economy and abolish the Federal Reserve System.
If stagflation begins, investors should avoid risky assets such as stocks and long-term bonds. Brook advises buying gold because the yellow precious metal actually retains its value over a long period of time. It is both an investment for the future and protection of capital from depreciation.