Here’s a Look at the $100 Billion in Disaster Relief in the Gov’t Spending Bill

(Headline USA) Congress is allocating more than $100 billion in emergency aid designed to address extensive damage caused by disasters after this week’s scramble to find consensus on a government spending bill.

The money comes after back-to-back hurricanes—Helene and Milton—slammed into the southeastern United States this fall, leaving havoc in their wake.

But the money would go to more than just those two storms under the bill signed Saturday by President Joe Biden that keeps the federal government funded through March 14.

Biden said in a statement that the bill “delivers the urgently needed disaster relief that I requested for recovering communities as well as the funds needed to rebuild the Francis Scott Key Bridge ” in Baltimore, which collapsed under the impact of a massive container ship that lost power and veered off course in March.

Here’s a look at what’s in the bill for disaster relief and where the money will go:

The Federal Emergency Management Agency’s disaster relief fund is essentially the country’s checkbook for emergencies.

Out of it, the government reimburses states and local governments for things such as removing debris accumulated after hurricanes or overtime costs for firefighters and police who work during disasters.

It also includes money for individual residents, ranging from the $750 payments that disaster survivors can get to $42,500 that some uninsured homeowners can receive to help them rebuild.

Esther Manheimer, mayor of Asheville, the largest city in the North Carolina mountains that was hard hit by Helene, said city officials were pleased to see th additional disaster dollars.

It’s only been four weeks since Asheville residents could drink from and bathe in the water coming out of their faucets. Some businesses in western North Carolina have shuttered permanently or are struggling to survive, and well over 200 roads in the region remain closed.

In a statement earlier in the week, Manheimer emphasized that it was still going to be a long recovery and that “already we see the long-term economic, budgetary and employment impact Helene left in her wake.”

The disaster relief fund was nearly running on fumes after Helene and Milton. FEMA Administrator Deanne Criswell warned during a Senate hearing in November that the fund was down to $5 billion.

The Biden administration had asked Congress for about $40 billion for the relief fund but the bill eventually passed provides a lower amount, $29 billion.

It’s important to keep in mind that this isn’t the only money for the disaster relief fund, said Stan Gimont, a senior adviser for community recovery at Hagerty Consulting.

He used to run the community development block grant program at the Department of Housing and Urban Development.

More money can and likely will be designated to the fund later when Congress does a full-year appropriation, he said.

There’s also about $21 billion in disaster assistance to help farmers.

North Carolina Agriculture Commissioner Steve Troxler said earlier this week that he was pleased by the agricultural aid but that the state has a lot of specialty crops such as sweet potatoes and Christmas trees that are generally not covered by federal programs. He said he will have to wait and see what specifically ends up being covered.

“We are still evaluating the bill as there are a lot of nuances in it. The devil is in the details,” he said.

Other money will go toward rebuilding damaged roads and highways ($8 billion), while more money (about $12 billion) would go toward helping communities recover through HUD grants.

The block grant money is one of the key funds for homeowners who don’t have insurance or enough insurance to recover from disasters.

There’s also $2.2 billion for low-interest loans for businesses, nonprofits and homeowners trying to rebuild after a disaster.

But the money doesn’t go just toward local residents.

For example, there’s money for the military to address damage from hurricanes and typhoons and for a new hurricane hunter—the planes used to research hurricanes—and funds to help NASA rebuild hurricane-damaged facilities.

Some of the money is specifically earmarked for certain projects such as $1.5 billion designated for assistance after the largest wildfire in New Mexico’s recorded history—the Hermit’s Peak/Calf Canyon fire — and the rebuilding of the Baltimore bridge.

But a lot of the money also goes more generally toward major disasters that happened in recent years.

The types of disasters covered in the legislation include droughts, wildfires, hurricanes, floods, derechos, and smoke exposure.

Gimont points out that disaster recovery can take a long time so the country is both paying for disasters that happened previously while it prepares for events that will happen in the future.

Take the massive Maui fire, for instance. It decimated the Hawaiian town of Lahaina last year, but Gimont said just the cleanup itself extended into late summer 2024.

Adapted from reporting by the Associated Press

Support GATA Financially and Get a 1-Ounce Silver Round Commemorating the Organization’s Work

(Chris Powell, Money Metals News Service) Longstanding Western central bank policy of monetary metals price suppression has never been more vulnerable than it is today.

Governments and central banks around the world have been defecting from the policy this year, accumulating gold and silver instead of lending them.

And some countries — those associated with the BRICS group — are even thinking about creating an international currency with which they can avoid the U.S. government and the dollar and protect their sovereignty against U.S. economic sanctions.

Shorting gold through derivatives is no longer a sure mechanism for profit. To the contrary, the practice now threatens to blow up the governments, central banks, and associated banks still using it.

Documenting, litigating against, and complaining about monetary metals price suppression for 25 years, GATA has alerted investors, governments, mining companies, and news organizations around the world. No one in the monetary metals sector denies metals price suppression any longer; most people in the sector take it for granted, even as most remain too scared to discuss it lest they risk getting in trouble with their governments and banks.

The U.S. Treasury Department, its Exchange Stabilization Fund, the Federal Reserve Board, and the Bank for International Settlements have turned out not to be “conspiracy theories” but actual conspiracies in operation. If you don’t believe us, try attending their meetings. There are reasons they won’t let you in — reasons defining “conspiracy.”

But the struggle against monetary metals price suppression has not yet been won, and we need your help.

GATA is still the only organization in the world devoted to waging the struggle for free and transparent monetary metals markets, which is a struggle for a limited and accountable government generally.

Advancing this cause takes resources. It doesn’t happen on its own.

But if you help GATA today, we have something special for you.

Our friends at Money Metals Exchange in Eagle, Idaho, support our struggle so much that they have minted a beautiful 1-ounce silver round honoring GATA — and they want you to have at least one.

GATA Silver Round Money Metals Exchange

On the front of the round is an engraving copied from the GATA painting by Alain Despert, depicting GATA as a modern-day Don Quixote leading a march of gold and silver advocates on the U.S. Treasury Department building in Washington

The back of the round shows the torch of liberty breaking the chains of price suppression and recognizing gold and silver as the crucial defenders of liberty

You can purchase the GATA commemorative silver round from Money Metals Exchange for around $34 here:

But if you’d like to help GATA directly, each donation of $250 to GATA will entitle the donor to one of these silver rounds, which GATA will arrange to have shipped to the donor from Money Metals Exchange, which is now the operator of the largest precious metals depository in the United States west of New York, a depository larger than even Fort Knox.

Your gift today will propel GATA’s important work, and we’ll be very grateful for it.

We just need to remind donors that the metal value of each of the rounds they receive as thanks for their donation must be subtracted from the federal tax deductibility of their contribution to GATA. For example, with the silver round priced at $34, a $250 donation made to GATA would be federally tax-deductible for $216.

Of course, these silver rounds are likely to increase in value along with the silver price in the years ahead — another reason to consider supporting GATA this way.

So please consider making a donation to GATA right now — today — especially now that this special 25th-anniversary GATA silver round is available to memorialize it.

To donate, please mail a check payable to GATA to:

Gold Anti-Trust Action Committee Inc.
c/o Chris Powell, Secretary/Treasurer
7 Villa Louisa Road
Manchester, Conn. 06043-7541 USA

Or visit GATA’s internet site here.

https://www.gata.org/node/16

Please include your e-mail address so we can thank you without incurring the time and expense of surface mail. And if you’re donating $250 or more, please let us know your shipping address so we can speed the silver round on its way to you.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
[email protected]

Gold, AI, and Geopolitics: Navigating a Turbulent Global Economy

(Money Metals News Service) Frank E. Holmes, CEO and Chief Investment Officer at U.S. Global Investors and Executive Chairman of Hive Blockchain Technologies, recently joined Mike Maharrey on the Money Metals podcast to discuss pressing economic trends, the Federal Reserve’s actions, and how technology and geopolitics are reshaping the investment landscape.

(Interview Begins Around 3:30 Mark)

Fed Policy and Economic Dynamics

Holmes critiqued the Federal Reserve’s recent 25-basis-point rate cut, noting that while inflation remains stubborn, the Fed reduced the number of projected rate cuts for the coming year from four to two. He highlighted the dual challenges of managing debt costs and stimulating economic growth amid negative real interest rates, which he believes will favor gold. Holmes pointed to a growing reliance on Modern Monetary Theory (MMT) and predicted this trend will continue to drive up gold prices.

The Role of AI in Streamlining Regulations

Holmes emphasized the transformative potential of artificial intelligence (AI) in addressing regulatory inefficiencies. Drawing from his experience taking GoldSpot, an AI-driven gold mining exploration company, public, he noted how AI could reduce wasted expenditures in exploration and streamline redundant government regulations. Holmes sees AI as pivotal in tackling the inefficiencies that burden sectors like healthcare and energy.

Gold’s Stellar Performance

Holmes underscored gold’s impressive track record this century, noting that it has delivered positive returns 80% of the time and even outperformed the S&P 500. Despite this, he acknowledged that gold stocks have lagged bullion due to weaker free cash flow metrics. However, companies focusing on robust free cash flow are starting to attract attention from diversified investors and quantitative funds.

New ETF: U.S. Global Technology and Aerospace Defense

Holmes unveiled the upcoming launch of the U.S. Global Technology and Aerospace Defense ETF, with the ticker symbol “WAR.” The ETF focuses on companies at the forefront of AI, cybersecurity, and aerospace technologies, including Nvidia and Palantir. Holmes positioned this ETF as a hedge against crises and a reflection of the growing demand for cybersecurity and defense technologies in a volatile geopolitical climate.

Global Geopolitical Landscape

Holmes explored the geopolitical ramifications of open borders, regulatory shifts, and energy dependencies. He highlighted Europe’s struggles with socialist-driven regulatory burdens, noting that 88 major companies left the London Stock Exchange last year due to ESG and DEI-driven mandates. Holmes contrasted this with the U.S., where technology and deregulation efforts under the Trump administration are fostering a more business-friendly environment.

Holmes also pointed out significant geopolitical tensions, including the Russian invasion of Ukraine, Poland’s increased defense spending (nearing 5% of GDP), and the broader implications for NATO and global stability. He voiced cautious optimism that AI and deregulation could usher in greater efficiency and economic resilience, though he warned of lingering cultural and political divides in regions like Europe and the Middle East.

A Message of Hope

As the conversation wrapped up, Holmes expressed hope for greater technological and economic innovation to address global challenges. He encouraged listeners to explore his insights further via his “Frank Talk” blog and the Investor Alert newsletter, which reaches over 100,000 subscribers worldwide.

Key Takeaways for Investors

Holmes’ analysis provides a comprehensive roadmap for investors navigating today’s complex landscape:

  • Gold as a Safe Haven: With negative real rates and persistent economic uncertainty, gold remains a vital asset.
  • AI’s Game-Changing Role: Innovations in AI are poised to revolutionize industries and government processes.
  • Defense and Cybersecurity: Growing geopolitical risks are driving demand for technologies that bolster national security.
  • Geopolitical Awareness: Investors must stay attuned to broader geopolitical developments that can influence markets.

As Holmes aptly summarized, “We don’t want war, but it’s important to protect ourselves from the realities of the world.” This balanced perspective encapsulates the dual need for optimism and caution in today’s investment climate.

Key Questions & Answers 

Money Metals Exchange Podcast Mike Maharrey Frank E. Holmes

The following are the key questions and answers from the Money Metals podcast with host Mike Maharrey’s interview with Frank Holmes, CEO and Chief Investment Officer at U.S. Global Investors and Executive Chairman of Hive Blockchain Technologies:

What is Frank Holmes’ view on the Federal Reserve’s recent policy moves?

Frank Holmes described the Federal Reserve’s recent 25-basis-point rate cut as a response to the conundrum of managing high debt costs and the need for economic stimulation. He noted the reduction in projected rate cuts for the upcoming year from four to two as a sign of the Fed’s hawkish stance. Holmes emphasized that negative real interest rates, which occur when inflation outpaces nominal interest rates, are favorable for gold, predicting a continued rise in its value as the Fed struggles to control inflation while sustaining growth.

How does Holmes see AI impacting the economy and government regulation?

Holmes highlighted the transformative power of artificial intelligence (AI) in reducing inefficiencies across industries and government. He shared examples from his experience with GoldSpot, an AI-driven gold exploration company, which reduced exploration costs significantly. He believes AI can similarly streamline the U.S. regulatory framework by eliminating redundancies, enabling a more efficient economy. AI’s role in sectors like healthcare and energy is also set to expand, identifying issues with unprecedented accuracy and precision.

Why does Holmes believe gold remains a strong investment?

Gold has delivered positive returns 80% of the time this century and outperformed the S&P 500, according to Holmes. He attributes this to its dual role as a hedge against inflation and a store of value during times of economic uncertainty. While gold stocks have lagged bullion due to weaker cash flow metrics, companies focusing on free cash flow are becoming attractive to diversified investors. Holmes foresees continued demand for gold as Modern Monetary Theory and negative real rates persist.

What is the focus of the new U.S. Global Technology and Aerospace Defense ETF?

The new ETF, with the ticker “WAR,” focuses on companies involved in AI, cybersecurity, and defense technologies. Holmes explained that firms like Nvidia and Palantir are crucial in addressing modern challenges, including drone technology, satellite recognition, and cybersecurity threats. The ETF is designed as a hedge against crises, reflecting the rising demand for technologies that ensure national and digital security in an increasingly volatile world.

What are Holmes’ insights on global geopolitical dynamics?

Holmes provided a detailed analysis of global geopolitical tensions, including Russia’s invasion of Ukraine, NATO’s response, and Europe’s economic struggles. He highlighted Poland’s defense spending, which now exceeds 5% of GDP, and emphasized how countries are rethinking open border policies. Holmes criticized excessive regulations in Europe, which have driven major companies away from markets like the London Stock Exchange. In contrast, he sees the U.S. leveraging deregulation and technology to maintain its economic edge.

What optimism does Holmes see for the future?

Despite challenges, Holmes expressed cautious optimism about the potential of AI and deregulation to address inefficiencies and promote economic growth. He highlighted the U.S.’s technological advancements and productivity gains as critical advantages over Europe. Holmes also emphasized the importance of geopolitical stability, particularly in regions like Ukraine, and encouraged a focus on innovation and strategic defense to navigate future uncertainties effectively.

Debt Ceiling Dance

(Clint Siegner, Money Metals News Service) Gold and silver are among the best-performing asset classes over the past two and a half decades. The unstoppable growth in government borrowing and spending is one of the pillars underpinning demand for metals.

Elon Musk and the so-called Department of Government Efficiency (DOGE) have certainly put a spotlight on cutting government, reducing waste, and cleaning up fraud.

Debt

Could true reform of federal government finances be coming – or is the recent optimism overblown?

Well, last week’s controversy over a Continuing Resolution (CR) on spending to keep the federal government open shed some light on the topic.

The first version of the CR was a 1,500-page monstrosity, and it failed to get enough Republican support in the House. The version that passed was much shorter. The fact that Republicans didn’t just pass the more bloated version may represent a sort of progress.

Leadership, both Democrat and Republican, worked together to delay the debate over spending until the last moment. They used the threat of a government shutdown and a delay of the Christmas recess to artificially pressure both sides into a compromise – one that did basically nothing to reduce spending.

Americans should probably expect a repeat of this drama in about 3 months when the federal government once again bumps up against the debt ceiling.

One thing to watch for in the coming months is how aligned Musk’s Department of Government Efficiency and President Trump actually are on the topic of government spending.

Musk has been vocal about the need to dramatically reduce federal spending. Trump, however, has never been a budget hawk.

Trump may not be planning to use the cap on federal borrowing as a tool to force spending reductions. Last week, he advocated again for Congress to eliminate the debt ceiling. He was unhappy when some House Republicans refused to get behind him on that issue.

The incoming president does not appear to share Musk’s concern when it comes to the $36 trillion in existing federal debt.

Trump believes the debt can be managed if there is enough economic growth. And he does not intend to take on entitlement spending, having committed to leave social security and healthcare benefits alone.

One could say Trump is more of a pragmatist. He understands some of the spending cuts that someone like Musk might prefer are politically impossible to make.

Trump’s reelection does not change the fact that Congress still controls federal spending. Unfortunately, there is no sign that Representatives and Senators are ready to talk seriously about balancing the federal budget.

If some Republicans show up ready to fight over extending the borrowing cap three months from now, they don’t seem likely to get support. They may even find the President threatening to support a primary challenge against them in their next campaign, as happened to Chip Roy last week.

The lesson from last week is that a proactive solution for spending growth and deficits – and, by extension, inflation – is unlikely. It will take a crisis, either in the dollar or in the bond markets, to force politicians’ hands. Investors should prepare accordingly.

Bluesky ‘Karens’ Continue to Gripe about Bots, ‘Disinformation’ Rampant on X Alternative

(Headline USA) Little data has emerged to help quantify the rise in impersonator accounts and artificial intelligence-fueled networks on Bluesky.

But in recent weeks, users have begun reporting large numbers of apparent AI bots following them, posting plagiarized articles or making seemingly automated divisive comments in replies.

Lion Cassens, a Bluesky user, found one such network by accident—a group of German-language accounts with similar bios and AI-generated profile pictures posting in replies to three German newspapers.

“I noticed some weird replies under a news post by the German newspaper ‘Die Ziet,’” he said in an email to The Associated Press. “I have a lot of trust in the moderation mechanism on Bluesky, especially compared to Twitter since the layoffs and due to Musk’s more radical stance on freedom of speech. But AI bots are a big challenge, as they will only improve. I hope social media can keep up with that.”

Cassens said the bots’ messages have been relatively innocuous so far, but he was concerned about how they could be repurposed in the future to mislead.

There are also alleged signs that foreign disinformation narratives have made their way to Bluesky. The disinformation research group Alethea pointed to one low-traction post sharing a false claim about ABC News that had circulated on Russian Telegram channels.

Copycat accounts are another challenge. In late November, Alexios Mantzarlis, director of the Security, Trust and Safety Initiative at Cornell Tech, found that of the top 100 most followed named individuals on Bluesky, 44% had at least one duplicate account posing as them.

Two weeks later, Mantzarlis said Bluesky had removed around two-thirds of the duplicate accounts he’d initially detected—a sign the site was aware of the issue and attempting to address it.

Bluesky posted earlier this month that it had quadrupled its moderation team to keep up with its growing user base.

The company also announced it had introduced a new system to detect impersonation and was working to improve its Community Guidelines to provide more detail on what’s allowed.

Because of the way the site is built, users also have the option to subscribe to third-party “Labelers” that outsource content moderation by tagging accounts with warnings and context.

The company didn’t respond to multiple requests for comment for this story.

Even as its challenges aren’t yet at the scale other platforms face, Bluesky is at a “crossroads,” said Edward Perez, a board member at the nonpartisan nonprofit OSET Institute, who previously led Twitter’s civic integrity team.

“Whether BlueSky likes it or not, it is being pulled into the real world,” Perez said, noting that it needs to quickly prioritize threats and work to mitigate them if it hopes to continue to grow.

That said, disinformation and bots won’t be Bluesky’s only challenges in the months and years to come. As a text-based social network, its entire premise is falling out of favor with younger generations.

A recent Pew Research Center poll found that only 17% of American teenagers used X, for instance, down from 23% in 2022. For teens and young adults, TikTok, Instagram and other visual-focused platforms are the places to be.

Political polarization is also going against Bluesky ever reaching the size of TikTok, Instagram or even X.

“Bluesky is not trying to be all things to all people,” Wardle said, adding that, likely, the days of a Facebook or Instagram emerging where they’re “trying to keep everybody happy” are over.

Social platforms are increasingly splintered along political lines and when they aren’t—see Meta’s platforms—the companies behind them are actively working to de-emphasize political content and news.

Adapted from reporting by the Associated Press

A Next-Level Gift: Gold!

(Mike Maharrey, Money Metals News Service) An anonymous “elf” in New Albany, Indiana, took the Christmas-giving spirit to the next level by dropping a gold nugget into a Salvation Army kettle.

Almost every year, I read about somebody gifting the Salvation Army gold. It always makes the news because getting gold is a big deal.

That’s because gold is real money. Everybody immediately recognizes its value!

The “trusted elf,” as a Salvation Army press release called the anonymous donor, delivered the nugget to a Kroger store in New Albany, a suburb of Louisville, Kentucky. According to WHAS, the nugget weighed in at 15.5 ounces, making it worth just over $40,800 at the current spot price of gold. But according to Heritage Auctions VP of Nature and Science Craig Kissick, the nugget might be worth upward of $50,000.

“Nuggets of this size are inherently rare. Due to their scarcity, examples such as this, and especially of this quality, can often be expected to achieve a premium in value well beyond the mere value of the gold content.”

The natural forces that create nuggets, including erosion and water transport, often also break them apart, making large specimens uncommon. Modern mining methods also tend to crush gold into fine particles, rarely leaving intact nuggets.

The donation of gold stirred up quite a bit of excitement. In fact, it likely turned heads even before they knew the true value of the nugget. That’s because the value of gold is recognized by virtually every culture around the world.

If you are still looking for a last-minute Christmas gift, perhaps you should consider the gift of gold or silver. We can guarantee your gift won’t end up in a garage sale next year. And it will likely be worth more than when they opened it.

Check out the Money Metals’ Holiday Gift Shop, and have a wonderful holiday season!


Mike Maharrey is a journalist and market analyst for MoneyMetals.com with over a decade of experience in precious metals. He holds a BS in accounting from the University of Kentucky and a BA in journalism from the University of South Florida.

Budget Deal Avoids Government Shutdown But Exposes Bigger Problem

(Mike Maharrey, Money Metals News Service) The federal government “averted disaster” as it continued to hurdle toward the edge of a cliff.

Last week, Congress approved a bill to fund the government through March 14 and avoided a “government shutdown.” However, it did nothing to address the ever-growing national debt, underscoring a systemic problem in Washington, D.C.

In fact, the entire saga hints at the fact that they’ll get the borrowing and spending problem under control until the debt blows up in our faces.

The Budget Deal 

The most important thing to understand about the budget deal is that it added more spending to the already bloated federal budget.

The 118-page stop-gap spending bill includes $100 billion for disaster relief and $10 billion in aid to farmers, along with money to fund the reconstruction of the Francis Scott Key Bridge in Baltimore.

On the bright side (for those who care about reducing the size of government and addressing the debt), pressure from President Trump, Elon Musk, and more conservative members of Congress torpedoed the original 1,500-page proposal that was packed full of pork, a pay raise for Congress, and all kinds of unrelated provisions that lawmakers hoped they could slide through the process without debate.

But it’s telling that Congress pushed through additional spending despite the spotlight on cutting government spending in the face of massive monthly deficits and a national debt that recently eclipsed $36 trillion.

And it underscores the harsh reality. The government has a borrowing and spending problem that isn’t going away.

The Biden administration spent a staggering $6.75 trillion in fiscal 2024, a 10 percent increase over 2023 outlays. The federal government is blowing through well over half a trillion dollars every single month.

And as the budget deal underscores, despite some Republicans paying lip service to cutting spending, Congress keeps finding new ways to spend money.

Remember how President Biden promised that the [pretend] spending cuts would save “hundreds of billions” with the debt ceiling deal (aka the [misnamed] Fiscal Responsibility Act)?

That never happened.

And now they’re piling on more spending.

You might think that additional spending for disaster relief is warranted and that helping farmers struggling with declining commodity prices is a good thing. But politicians will always justify their expenditures as “necessary,” “crucial,” or “imperative to our national security.”

There will always be a new crisis, war, or disaster to justify more spending.

Granted, there are a few optimistic signs. The Republicans managed to kill the first budget deal with its barrels of pork. When Republicans control both chambers of Congress and the White House in January, there will be an opportunity to tackle the spending problem, but whether the GOP has the political will to make substantial cuts remains to be seen.

Keep in mind that it’s easier to talk about spending cuts than it is to actually cut spending. Nobody wants “their” program to feel the slice of the scissors. Spending cuts are never as popular in practice as they are in theory.

And even if the Trump administration manages to slash discretionary spending as promised, that only accounts for 27 percent of total spending. The vast majority is for entitlements, and there is little political will on either side of the political aisle to take the scissors to Social Security or Medicare.

The Fake Debt Ceiling Fight

Another bad sign is Trump’s push to raise the debt ceiling and the attempt to ram it through.

Following Trump’s lead, Republicans initially included a provision to suspend the debt ceiling in the budget bill, leading to another (fake) debt ceiling fight.

In practice, the debt ceiling is a legislative limit on the total amount of money the United States government can legally borrow to meet its financial obligations.

In June 2023, Congress suspended the debt ceiling through Jan. 1, 2025. In effect, Congress handed itself a credit card with no limit for two years.

At the time of the debt ceiling suspension, the limit stood at $31.38 trillion. Since then, the federal government has ballooned the debt by $4.79 trillion.

When the suspension ends on Jan. 1, the ceiling will automatically rise to match the current debt level, but the Treasury won’t be able to borrow more without a new debt ceiling or another suspension of the limit.

But even with the federal government up against the debt ceiling, the Treasury Department can execute “extraordinary measures” to keep the government running as normal without issuing more debt. These measures include redeeming existing investments and suspending future investments in the Civil Service Retirement Disability Fund, the Postal Service Retiree Health Benefits Fund, and federal employee retirement system savings plans. These moves would likely push the hard debt ceiling deadline to the summer of 2025.

The debt ceiling game is nothing new.

Congress imposed the first debt ceiling in 1917. The Second Liberty Bond Act capped debt at $11.5 billion. This was supposed to put some kind of restraint on government borrowing.

Of course, it didn’t. Every time the debt approaches the ceiling, Congress simply raises it. Between 1962 and 2011, lawmakers jacked up the debt “limit” 74 times, according to the Congressional Research Service.

In 2013, Congress came up with a new trick. Instead of raising the debt ceiling, it just suspended it. In 2014, Congress set the debt limit with a built-in “auto-adjust.” The auto-adjust ended in March 2015, with the debt ceiling set at $18.1 trillion. After that, Congress suspended the debt ceiling four times, including the latest pause in 2023.

It’s clear the debt ceiling doesn’t do anything to slow down the fast-spending drunken sailors on Capitol Hill. But it does afford a great prop for Republicans and Democrats to put on kabuki theater. And it creates an ideal scenario for political brinksmanship.

So, pop some popcorn and pull up a chair because you’re going to hear a lot about the debt ceiling over the next several months. Politicians will posture, pontificate, and play a dramatic game of chicken. We might even have to endure another government “shutdown.”  But at the end of it all, Congress will raise or suspend the debt limit next year, and Trump will sign off on it. Failure to do so would mean default – something nobody is seriously willing to contemplate.

In other words, it’s a fake fight.

Gold-Backed Scholarship Program Awards $11,500 to Nine Students

(Jp Cortez, Money Metals News Service) Nine bright young scholars earned $11,500 to put towards the cost of college through a scholarship program promoting the sound money cause.

The Sound Money Scholarship is an annual essay contest organized by Money Metals Exchange (the U.S. precious-metals dealer ranked “Best Overall”) and the Sound Money Defense League, a national public policy group at the forefront of sound money legislative battles across the country since 2014.

More than 200 students across four continents, a dozen countries, and 35 U.S. states competed for this year’s scholarship funds, submitting essays addressing the problems of the Federal Reserve System, how a sound money monetary system could be restored, Central Bank Digital Currencies, and how a BRICS-currency might affect the value of the Federal Reserve Note.

Money Metals originally set aside 100 ounces of physical gold to reward over time those exemplary students who display a thorough understanding of economics, monetary policy, and sound money.

Scholarships have been funded via this rapidly appreciating asset base, with gold having more than doubled in nominal value since Money Metals established the fund in 2016.

“Money Metals is not just about buying and selling precious metals; we’re committed to education and advocacy of the underlying sound money principles. Through our scholarship program, we’re extending our support to students who share our belief in the importance of economic freedom and a stable currency,” said Stefan Gleason, Chief Executive Officer of Money Metals Exchange.

“In addition to our precious metals depository storage solutions, innovative gold loan program, and active sound money public policy efforts, we are proud to provide students the opportunity to offset the ever-increasing costs of furthering their education,” concluded Gleason.

The following are 2024’s high school / undergraduate winners:

  • First place ($2,500): Tyler Lister, University of Central Arkansas
  • Second place ($2,000): Owen Holzbach, Ball State University
  • Third place ($1,500): Elizabeth Myers, University of Florida
  • Fourth place ($1,000): Caleb Dunn, Long Beach City College
  • Fifth place ($500): Gavin Xavier Chua, Guy M. Sconzo Early College High School
  • Sixth place ($500): Liam Phillips, West Sayville Christian School

The following are 2024’s graduate winners:

  • First place ($2,000): Vibhu Vikramaditya, Gokhale Institute of Economics and Politics
  • Second place ($1,000): Benjamin Seevers, West Virginia University
  • Third place ($500): Patrick Frise, North Dakota School of Law

The following blue-ribbon panel of judges assisted Money Metals and the Sound Money Defense League in selected the finalists:

Since its creation in 2016, the Sound Money Scholarship program has attracted almost 1,000 applicants representing more than 300 different high schools, colleges, institutes, and universities across more than 40 states, 7 countries, and 4 continents.

“Each year we receive even more entries for the Sound Money Scholarship. Today’s students seem to know the Federal Reserve’s policy of intentional monetary devaluation jeopardizes their future,” said Jp Cortez, executive director of the Sound Money Defense League.

The deadline for applications for the 2025 Sound Money Fellowship – a separate program — is December 31, 2024. Visit www.moneymetals.com/fellowship for more information.

And the deadline to submit scholarship applications for consideration next year is October 31, 2025. For more information, visit moneymetals.com/scholarship or email [email protected].

India Gold Imports at Record Levels in November

(Mike Maharrey, Money Metals News Service) Gold imports into India surged to record levels in November as strong demand continued in the wake of government tax cuts.

India ranks as the second-largest gold market in the world.

Gold demand got a big boost in July after the Indian government cut taxes on gold and silver imports by more than half, lowering duties from 15 percent to 6 percent. The move initially pushed prices down by about 6 percent and drove record gold imports in August. The price drop boosted demand for both metals.

According to preliminary data released by the Ministry of Commerce, gold imports totaled $14.8 billion last month. That was more than double October’s total and over four times higher than the same period in 2023.

Based on the Ministry of Commerce data, the World Gold Council estimates India imported between 170 and 180 tons of gold in November. That compares to an average of 63 tons through the first 10 months of the year.

Through the first 11 months of 2024, Indian gold imports are up about 48 percent. Imports are expected to eclipse 800 tons for the year.

Indian Gold Price Action

After an initial drop with the duty reduction, Indian gold prices surged as the yellow metal rose to record levels in dollar terms. But after several months of gains and record highs, gold’s upward price momentum slowed in November. As of mid-December, prices were down about 3 percent in rupee terms from their October peak.

Despite the November price decline, gold remains among the best-performing assets in rupee terms, with year-to-date returns of 22 percent.

Indian Gold Demand

After a surge of buying during the Diwali festival buying season, Indian gold jewelry demand has slowed, but physical investment demand remained robust last month.

High prices and volatility have kept many jewelry buyers on the sidelines in recent weeks, even with the onset of wedding season. However, physical investment demand has shown what the World Gold Council describes as “steady growth.”

Anecdotal reports indicate strong sales of both gold coins and gold bars in November. According to the World Gold Council, “positive sentiment around gold prices and its appeal as an investment asset have likely supported this trend, which is expected to continue.”

We’ve also seen this domestic demand reflected in ETF action. Most major markets reported outflows of gold from ETFs, but Indian funds bucked that trend. Gold ETFs reported net inflows of ₹12.6 billion ($149 million) in November, well above this year’s average monthly inflows.

Collective gold holdings in Indian ETFs are up 56.2 tons on the year, a 35 percent year-on-year increase.

According to the World Gold Council, “The strong inflows into gold ETFs this year underscore heightened investor interest.”

Indian Central Bank Gold Buying

The Reserve Bank of India has ranked among the world’s biggest central bank gold buyers in 2024.

The RSB continued to add gold to its holdings in November, increasing its reserves by another 8.4 tons. It was the 11th straight month of Indian central bank gold purchases.

To date, the Reserve Bank of India has increased its gold reserves by 72.6 tons in 2024.

Gold currently accounts for about 10 percent of India’s total reserves, the highest level since 1999.

An Indian economist told the Times of India that the push to accumulate gold was based on both political and economic reasons. He said that the “reliability” of the U.S. dollar has “diminished.” He noted the “noticeable decline” in the confidence in U.S. dollar assets.

Another economist told the Times, “It makes a lot of sense (to invest in gold), given the increased volatility in the FX market, elevated interest rates in the U.S., and, of course, also as the central banks in each economy would like to diversify the asset classes in which they are parking their reserves.”

India has also been bringing its gold back into the country. Last spring, the Reserve Bank of India repatriated 100 tons of gold, moving it from the UK to vaults within India’s borders, and it recently brought more gold home.

India’s Love Affair With Gold

Indians historically have an affinity for gold. While it’s hard to know for sure exactly how much gold Indians hold because of the amount of metal circulating in the underground economy, the best estimate is that Indian households own more than 25,000 tons of gold.

Gold is deeply interwoven into the country’s marriage ceremonies, along with its religious and cultural rituals. Festival seasons typically boost gold demand.

Indians have long valued the yellow metal as a store of wealth, especially in poorer rural regions. Around two-thirds of India’s gold demand comes from beyond the urban centers, where large numbers of people operate outside the tax system. Many Indians use gold jewelry not only as adornment but as a way to preserve wealth.

In the West, gold is generally viewed as a luxury item. Not in India. Even poor Indians buy gold. According to a 2018 ICE 360 survey, one in every two households in India had purchased gold within the last five years. Overall, 87 percent of Indian households own some gold. Even households at the lowest income levels in India hold some of the yellow metal. According to the survey, more than 75 percent of families in the bottom 10 percent of income managed to buy some gold.

The yellow metal was a lifeline for Indians buffeted by the economic storm caused by the government’s response to COVID-19. After the Indian government locked down the country, banks tightened credit to mitigate the default risk. Unable to secure traditional loans, Indians used gold to secure financing. As Indians endured a second wave of lockdowns, many Indians resorted to selling gold outright to make ends meet.

‘How About Day 1?’: Trump Takes Hard Stance on ‘Transgender Lunacy’

(Julianna Frieman, Headline USA) President-elect Donald Trump took a hard stance against the “transgender lunacy” embraced by the Biden administration Sunday during his speech at the America Fest Conference in Phoenix, Arizona.

In his rally-style remarks headlining the final day of the annual Turning Point USA event, Trump energized the audience by declaring his intent to crack down on gender ideology as soon as he is inaugurated to his second term.

“With the stroke of my pen on day one, we’re going to stop the transgender lunacy,” the president-elect told a roaring crowd.

Trump reiterated his campaign promises to protect women’s spaces, safeguard parental rights and save confused children from being led astray by the medical system.

He announced his intent to sign executive orders on his first day in office that would make sex-change surgeries on children without parental consent illegal, remove transgender service members from the U.S. military and stop the mandatory indoctrination of kids through LGBT curriculums in all levels of education.

“And I will sign executive orders to end child sexual mutilation, get transgenders out of the military and out of our elementary schools and middle schools and higher schools,” Trump said.

The audience clapped and cheered for several seconds before Trump continued, “And we will keep men out of women’s sports. And that will likewise be done one day one. Should I do day one, day two, or day three? How about day one.”

The president-elect squashed the notion that he would allow the federal government to acknowledge more than two genders, declaring his plan to reenforce the biological fact that humans can only be classified as men or women.

“Under the Trump administration, it will be the official policy of the United States government that there are only two genders: male and female,” Trump announced, prompting loud celebrations in the crowd.

Julianna Frieman is a freelance writer published by the Daily Caller, Headline USA, The Federalist, and The American Spectator. Follow her on Twitter at @JuliannaFrieman.