I have just read an interview between a journo and a well renowned financial analyst/expert who has the ability to foresee and predict looming financial disasters, and he believes that Gold is clearly one of the best investments to be in over the next several years. In a nut shell, this is what he thinks:
This particular person advised his clients about the demise of General Motors prior to it happening, he predicted the bankruptcy of Fannie Mae and Freddie Mac a year in advance and he's been urging people to buy gold and avoid the dollar for several years.
According to him, the problem in the US at the moment is that the US Government is printing more money than they are taking in taxes, so people and organisations are afraid to hold cash so and are now buying gold, which is why it's over $1,000 an ounce at the moment as we know.
The US calls its printing of money “quantitative easing” which also leads to the fact that there is no way that the USA can repay the total size of its outstanding debts.
The total outstanding obligations of the U.S. government are something in the order of $70 trillion to $90 trillion dollars. According to this analyst, the US Government is now in a position that it is not able to finance their annual deficits.
So he is saying that they are now printing a shed load of money that reduces the purchasing power of debts they owe, he stated that this is the USA’s only alternative. “to print money” We know that this will create inflation? One would think that this financial dilemma would add additional pressure on the viability of funding the war in Afghanistan “my thoughts”.
He then talks about if say you're a wealthy person, you need to be really afraid of losing your savings due to inflation. He also talks about being on the lookout for new changes to tax policy which will be designed to make it impossible for you to escape the looming threat of inflation?
He also belives that the US is headed towards a currency control type system. E.G. when you have a government that is not able to finance its expenditures, and you have a very narrow tax base, due to unemployment, tax evasion etc and then the tax base attempts to leave e.g. business and people shutting up shop and opting to move off shore, then the government all of a sudden will ensure that you are not allowed to go anywhere with your money.
This fellow reckons that if you know anything about economic history, the US economy is heading for a giant collapse. Apparently, there is no way to save the sinking ship. He reckons its 100% guaranteed.
So you are probably wondering, what does this man recommend that we invest our hard earned cash in? The answer is “GOLD”
He puts all his spare cash into gold every year and has been doing for the last few years.
That gives us share holders in SML great hope
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