It has become common knowledge that the US debts to domestic growth ratios are at present the highest after the end of the Second World War without even including contingent liabilities that would push the ratios even higher if at all entitlements are to be considered as debts, which in most case scenarios are considered as such. Although one may tend to argue that US deficits have declined, the fact that remains is that the people on the hill and their haphazard policies are adding to the overall debt rapidly and the debts are actually growing faster than the economy is.

No matter who says what, what is clear is the fact that the United States of America is on direct collision course with a fiscal crisis and that will lead towards loss of confidence in the dollar. It seems that the Feds have finally run out of bullets to handle depressed growth effectively let alone efficiently. What is baffling is that what they could actually do is since their policy rate is off zero; they could cut rates much later in 2016 or even later in early 2017.

The fact that quantitative easing measures 2 and 3 did not achieve much, QE4 is very unlikely to be executed. Although, they could still try negative rates, but based on what has happened in Europe, Switzerland and even Japan, negative rates are not much better for growth than zero rates and as a matter of fact, they could even prove to be counter-productive as they are an indication of deflation fears which lead to stronger savings and less spending which is exactly the opposite of what central banks need and this vicious cycle keeps rolling on as it is not an easy cycle to break.

The only thing that looks like they are going to be doing is return to the currency wars in a bid to cheapen the greenback which is what they did in 2011 which gives the US economy a short lived lift. This lift would be a temporary relief as there is no way that any economy is going to escape from the impending global economy slowdown.

At that point the only other viable option is to print more money and increase spending which means more debts raising new questions with regards to who will be buying these new government bonds, how is the Treasury going to maintain low interest rates in order for the Treasury bond market not to collapse. All these things will eventually boil down to the average man on the street, and his only hope is to buy into precious metals and preferably in physical form, because when the currency gets devalued, the man on the street will be holding the shortest straw and the only way he can hedge himself is by having substantial gold or silver stashes.

Nothing has changed much except for the fact that governments and central banks keep introducing different measures that end up resulting in the same results.