Hi fine:
... Now gold is spiking based on the huge deficit and money supply creation. All that is needed to pop that bubble is for the repub house and some leadership by the president to make a compromise and begin to bring down the deficit.
If these were regular market cycles, then perhaps we might agree. However, you cannot compare current Fed printing of trillions and trillions and trillions of dollars to anything we have seen in history. The fiat dollar is being debased at record pace with no end in sight. You have never seen global governments buying up gold and silver like we are seeing that today. The dollar has been the world currency, but today the dollar is weakening and shaky and confidence is dwindling. In fact, the only reason you can buy silver at below 30 bucks an ounce is because of Bankster manipulation; which is another reason to buy now! The U.S. deficit is out of control and there is no way of reversing the downward spiral to ultimate default that will begin with the States and find everyone swimming in a sea of DEBT.
It can't be brought down overnight without creating a depression.
The USA has 23 percent unemployment and no bottom in the housing markets saying that we are already in the Depression. There is far too much worker displacement for any real recovery to get traction in the USA, which should be plainly obvious to everyone. The current ponzi economy is propped up by massive stimulus/bailouts that will eventually run out of steam and see gold/silver prices soar. Again, you cannot compare the upcoming train wreck of the US Economy to anything in recorded history, because nobody has ever orchestrated a bubble the size of this current catastrophe that is about to blow up in all of our collective faces.
If the plan implements long term steady lowering of the deficit, gold will wilt IMO. Now, can the repubs and the pres do it? Won't be easy. Everything will have to be on the table.
You have got to be kidding! The Illegal Alien Foreign National (Barry) squatting in the White House is working for the House of Rothschild/Rockefeller/Morgan and the same people that are orchestrating the coming collapse. The smart money is running after gold and silver, because the world realizes that a new gold-based currency will emerge after the collapse; when all fiat currency is inflated to infinity and rendered worthless.
Social security means testing. Limits on medicare and medicaid spending (covered procedures, end of life care). Cuts in defense (why do we need to spend as much as the next 20 nations combined? We don't, there is no strategic threat to the US today. Foreign bases will have to close, just like England gave up her colonies).
The problem with your 1970's-era thinking is that fiat dollar value is disappearing fast and the solutions to your problems thus far have been to print up more worthless fiat currency that leads to inflation and hyperinflation.
China, Russia and Iran have been dumping the dollar for gold (
story) for some time now. This is the kind of news I am reading everywhere on this topic:
PakAlertPress.com
China, Russia, Iran Dumping Dollar For Gold
... This buying, for protection, has served to thwart the efforts of
US policymakers, the Treasury, other central banks in Europe and the Fed, from being able to continue
the blatant suppression of both gold and silver prices. The malefactors, except for forays into derivatives and futures, which are transitory,
have lost control and suppression of gold and silver prices, and it is only
a matter of time before all visages of any control will be visible.
In other words, the rules for playing the gold and silver markets are rapidly changing and we are now standing at the threshold of an entirely new ballgame resulting from 'currency wars.'
SafeHaven.com Article
Gold: Currency Wars and China
Once again gold has made fresh highs as the Fed prepares its second or is it the third round of quantitative easing (a.k.a. money printing) which involves buying assets (a.k.a debt) to drive down yields and hopefully stimulate more borrowing and spending. Two years after the Lehman collapse and implosion of the housing sector, the financial system is still on life support. With
an anemic domestic market of lost jobs,
lost homes and lost income, the Americans, Europe and Japan are trying the familiar false remedies of subsidies and
competitive devaluations to give exports a boost. And now the sovereign debt troubles of the weaker members of the euro-zone threaten to take the system down again.
Washington's insatiable appetite for debt and taxes has become just too big. In
reflating this bubble with yet
another round of quantitative easing, Fed Chairman Bernanke (a.k.a. Helicopter Ben) has
greatly increased the risk of a global currency war dragging down an
already vulnerable banking system. Desperately the Americans and Europeans have resorted to the printing press, manipulating their currencies lower destabilizing capital flows, raising fears of an
all out currency war, similar to the one that spawned the Great Depression. [
More]
In other words, these corrupt governments are not going the way of responsibility and are recklessly printing up more and more money that only gives the economic system MORE DEBT. Silver and gold are NOT the bubble! The eight hundred pound gorilla in the room is the growing stimulus/bailout/quantitative easing BUBBLE that is definitely going to BURST. You have lost your job-out of money-and trying to fix everything by making the house payment with your credit card, which we all know DOES NOT WORK in the long run. Yes, there are happy times for a little while, but eventually the bills come due and all your cards are maxed out and into bankruptcy you go. America 'is' going to default on the 202 trillion dollar debt, but we are just waiting around to know 'when' that is going to happen.
Taxes will have to rise (perhaps back to the 1995 levels). We have to do it all, for the good of the nation, we have to get to spending levels we can live with, without debasing our currency which will lower the standard of living for all americans.
How are you going to raise taxes on Americans, when illegal aliens have their jobs? How are you going to raise taxes on Americans whose jobs have been outsourced overseas or NAFTA offshored to other nations? Nobody in Washington DC is even trying to save the broken US economy. NOBODY. They are all moving chairs around on the USA Titanic and pointing fingers at everyone else for the gigantic mess looking us all in the face. Do not talk to me about raising taxes as any solution, when you have millions and millions and millions of illegal aliens stealing identities and jobs from Americans and sending our money south of the border to support their families in Mexico. BTW, just the interest payment on our debt at these low interest rates is 4,000,000,000 every day and that does not touch the principal! That is four billion dollars going out the window ever day 'before' you start paying the bills.
I expect average house size in the US will fall, we won't be able to afford to buy a big one, nor pay the taxes, nor insure it, nor heat and cool it due to higher energy prices.
You should expect the children and the parents to move back in with grandma, so that perhaps collectively they can afford to make the house payment and eat rice and beans ...
The reason the president and congress may reach a compromise on deficit reduction is because we have to.
Give me a break! The corrupt Bush/Obama Administrations and both houses of Congress are corrupt to the core and have no solutions to the economic chaos coming down the road. They are just waiting for the entire system to implode, so they can help the House of Rothschild/Rockefeller bring in their New World Order in the aftermath of the collapse. Those among you investing your worthless dollars in silver right now will have some chance of survival, but those of you worshiping at the altar of fiat currency will be left with little or nothing.
GL,
Terral
