Tag: debt bubble

Gold Price Strengthening as Debt Ceiling Debate Heats Up … Again

| October 19, 2015 | Category: Price
Gold Price Strengthening as Debt Ceiling Debate Heats Up … Again

Since President Obama’s inauguration in 2009, the federal debt held by the public has soared by 107%, according to recent data published by the Treasury Department. In raw dollars, Obama and his allies in Congress have burdened families with an additional $6.7 trillion in debt. That’s equivalent to more than $57,000 per household. Now the Obama administration is hoping to extract one last debt deal out of the retiring GOP Speaker.

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The Difference Between Gold and Debt

The Difference Between Gold and Debt

The world has added approximately $60 Trillion in debt since 2007, much of it sovereign debt created from deficit spending on social programs, wars, and much more. In that time the world has mined perhaps 30,000 tons of gold, or about 950 million ounces, worth at September 2015 prices a little more than a $Trillion. It is easy to create debt. Debt increases, currency in circulation increases, and until it crashes, life is good for the financial and political elite. But debt increasing 60 times more rapidly than gold indicates that debt is growing too rapidly and due for a reset.

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The US Dollar Is Becoming Cheaper In Gold Terms

| September 8, 2015 | Category: Investing
The US Dollar Is Becoming Cheaper In Gold Terms

After the release of the “In Gold we Trust” report, Incrementum Liechtenstein surpises gold bulls with a compendium of some of the most compelling charts and the most important conclusions from the report. This is a must read for gold investors!

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When Will US Debt Hit the Wall?

When Will US Debt Hit the Wall?

Assuming that revenue increases 4.6% per year, public debt increases 14% per year, and that a maximum of 1/3 of revenue can be used for paying interest, the blended interest rate in 2030 cannot exceed 2%. This tiny exercise tells me that western economies are accelerating toward a wall, there are only a few years or perhaps a decade or two remaining before a major reset must occur, and that the time for delusional thinking is nearly gone. What have you done to prepare for when one or many western economies “hit the wall?” Gold and silver might be better answers than devaluing currencies, overpriced bonds, or levitated stocks.

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Addicted To Debt, Deficit Spending, and QE

Addicted To Debt, Deficit Spending, and QE

Central banks and governments created this addiction – addicted to debt, deficit spending, and Quantitative Easing. Consider the upcoming pain for most people, governments, markets, and pension plans if the drug is removed and we suffer the withdrawal symptoms.

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Demand for Physical Gold remains strong and Global Debt Explodes

Demand for Physical Gold remains strong and Global Debt Explodes

As I have mentioned on many occasions, the current debt levels are totally unsustainable and without any real economic growth, there is no way that this will be resolved without a major monetary collapse or reset of the current fiat system. However, many people have no idea of what is really going on.

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Can Gold Save The World From the Credit Bubble?

Can Gold Save The World From the Credit Bubble?

The credit bubble has grown so large that the supposed central bank gold would have to be valued at $40,000 to $80,000 per ounce to back all the debt. Revaluing gold higher by a large factor may become necessary in the future to reestablish confidence in currencies. However a revaluation certainly will not be welcomed by central banks, governments, or most individuals. The transition to $80,000 gold, or even $10,000 gold, would be very traumatic.

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Expect Deflation, Inflation And Hyperinflation In This Distorted Financial System

Expect Deflation, Inflation And Hyperinflation In This Distorted Financial System

Depending on the magnitude of additional “money printing” that the world’s central banks will unleash upon the global financial community, we could see hyperinflation in several countries within a few years. Why? Central banks will try everything to avoid or reverse a deflationary collapse in paper asset markets because a deflationary collapse is “game over” for their credibility, governments, and politicians. They will print and print more and continue to fuel the inflationary boom, and … the bigger the boom, the larger the distortions, and the deeper the collapse.

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How The Financial World Resets

| April 21, 2015 | Category: Economy
How The Financial World Resets

A reset in the financial system seems inevitable. We survived other resets, such as the depression of the 1930s, WWII, 1971 separation of the dollar from gold, 1970s inflation, year 2000 stock crashes, and the 2008 financial crash. The world will survive the next reset. Excess debt, fiat currencies, and “printing currency” are the center of global economic problems. Those problems will not be resolved with more debt and “printing currency.” If central banks and politicians choose hyperinflation, all bets are off regarding how high gold and silver will climb, and how crazy our Twilight Zone world will become.

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Twilight Zone Economies

| April 17, 2015 | Category: Economy
Twilight Zone Economies

News from the financial world becomes more bizarre every day. We are slipping over the edge into Twilight Zone Economies. Which do you trust? The Twilight Zone of paper promises, politicians, central bankers, and massive, unbelievable, unpayable debt where some investments “pay” negative interest; or gold and silver?

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Gold, Greece, The Death Of Paper Money And The Modern State

| April 9, 2015 | Category: Economy
Gold, Greece, The Death Of Paper Money And The Modern State

For those who understand the tremendous financial and geopolitical forces that today are vying not so much for supremacy as they were previously, but for survival; gold remains as it always has been—a store of value in times of monetary chaos and economic distress. In March 2007, I predicted that an economic crisis would happen. It did. That crisis has yet to run its course to make way for the better world to come. In my Dollars & Sense youtube video, . I make another forecast. These are interesting times. Get used to it.

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Silver and Gold Will Thrive Beyond Exponential Growth of Debt

Silver and Gold Will Thrive Beyond  Exponential Growth of Debt

Systems will reset and change when exponential growth at current or reduced rates becomes impossible. The transition is likely to be difficult, dangerous, and the ensuing trauma will not fade quietly into the night. Exponentially increasing debt supported by nothing more than exponentially increasing promises will end in national and/or global disaster. When the reset comes, and it may be years away, would you rather hold assets that are based on debt, trust in a possibly insolvent counter-party, and denominated in the currency of an increasingly insolvent government and central bank . . . . or physical gold and silver?

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US Debt vs Silver Price Disconnect Has To Be Resolved

| April 6, 2015 | Category: Price
US Debt vs Silver Price Disconnect Has To Be Resolved

Keep It Simple – Stack! Governments borrow and spend, debt increases, and commodity prices inevitably follow. Silver and gold have been money for thousands of years, and still are. Paper substitutes have all failed, either slowly or rapidly, and they will continue to fail, unless governments and central banks responsibly manage the value of currencies (NOT likely).

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Silver and Gold: Shelter From the Storm

Silver and Gold:  Shelter From the Storm

Debt will increase substantially from here, until a massive reset occurs. Gold and silver, in spite of financial cartel resistance, will assert their real value and be priced much higher, depending on the quantity of debt created, loss of confidence in government and central bankers, and the amount of chaos that occurs during the coming storm. Exponentially increasing systems do not last forever. Gold and silver do.

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