Tuesday, December 23, 2008
Want to see what our creditors are thinking?
Then read the article in this link. Or this link. Our federal government and for-profit non-federal central bank have pushed the monetary and fiscal pedal to the metal, increasing our country's debt load and causing deterioration of the balance sheet backing our currency. When, not if, a currency crisis happens in this country, you will not be warned in advance by our leaders or by the mainstream media.
They will claim they could have never seen it coming and then, after failing to alert you at all, they will tell you not to worry and to remain calm. When this doesn't work, they will impose banking holidays and refuse to give you your money "for the good of the country." If Asia (i.e. China and Japan) decides to stop buying our bonds due to mistrust or lack of available money, we're in big trouble. The reserve status of our currency around the world is in danger and if we lose that status as the reserve currency, chaos will ensue.
The major chaos will be for the United States, as our currency will go into freefall and interest rates will skyrocket. Global trade will also become problematic and will shrink even further than it already has. We are at a major turning point in history here, and, though it may progress at a glacier's pace most of the time, a sudden event will likely precipitate a rapid devaluation of our currency.
Those who have their money in the bank at 0.3% interest or some similar ridiculously low rate will then be concerned about whether or not they will ever get their money back. Yes, the FDIC will step in and replace the nominal value of the currency, but this will further devalue the U.S. dollar and the purchasing power of that currency will be only a fraction of what it was.
Having some physical gold can protect you against this scenario, which seems almost a guarantee within the next 5 years or so. Not a question of if, but when. The U.S. has caused a global economic crash and resentment runs high. Our military is weak and overextended and we are running out of willing creditors to continue to loan us money to finance our ridiculous wars that have no end or purpose. Corruption is so rampant as to be expected in the highest political, military and business offices in the land. The parallels to the end of the Roman empire are astounding. Don't say you weren't forewarned and nobody saw it coming.