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Message: 24 Trillion Reasons to Buy Gold
Many out there think national debts or "internal debts" are not important....and I wonder how these people explain California. Perhaps this lack of understanding was understandable given how California came to be in this state....The right blames socialism and its role in ever expanding government....One could just as easily blame democratic processes by which the public itself democratically votes ever more and more programs of expansion by government....California used referendums and the people themselves would routinely refuse their government cutting back on its democratically passed commitments that its PEOPLE wanted....So the people and their ignorance of government finance can also be blamed here...It is not about the government per se...as this is a process that is mandated by the majority voters....Hence the majority suffers in the end...
This could also be looked as a failure of democracy in no greater or less way than a same failure of democracy that saw Wall Street Banks capture the White House and its policies over the last half century or so....Socialism, not corruption gets the blame here - but it is corruption that is the fact,,,,not a political economic process that is to blame. Likewise how often we have seen those banana republic dictatorships run for the elites in the respective country fail - as the peasants rise up against the injustice and impose either 1) another dictatorship of the right, or 2) a leftist government?
Should the ideological right be therefore attacking democracy instead of governments and socialism? Would a tiny government run by autocrats or even one man (doesn't get smaller than that!) be better...If the people were allowed no say in what is happening, in theory they wouldn't be making uninformed decisions not in their best interest....That has been a common theme down thru history and a majority of the results have still resulted in bankruptcy or anarchy...Zimbabwe comes to mind.....Also any number of tin-pot dictatorships of the right. All come to the same end.
Complaining about government as an institution would seems to be as useful as complaining about the weather.
In other words the ideological thinking of the right that governments are evil would seem to be a little narrow....But the end result is the same even if the cause isn't as simplistic as the muckrakers and ideologues on the right or left would have one believe...Social disruption and political systemic dissolution's. All of this is a failing of people maneuvering for their own benefit. And it doesn't seem to make much of a difference what label, socialist or rightist, one uses..... as the end the labels only have the function that aids this political race to the bottom by giving people concepts that can be exploited..It no longer matters in the US whether one is a Democrat supporter or Republican...Could this be THE sign that a country has failed? Perhaps
Or maybe the discussion is about being in a country with a little saner political history and a better government? Like Canada (so far, so good). When I look at the developing mess south of the border with all this right vs. left battle, I see a US with a history of governments that have never found much reason with its people to be admired. If I was an American, I would likely distrust my government too....And we should also remember how Mike Harris (premier of Ontario) was thrown out of power. He was neo-conservative, far right, but lost support of the Frazer Institute - the famouns Canadian Right Wing Think Tank - when he announced that he would pay down the provincial debt. The F.I. knew that that would insult the credit money system! Mikey had to go! To me this is another reason to believe that the right vs left argument is specious.
But most Americans seem to distrust Canadians because they are too socialistic!
Is all of this just projection?
FWIW,
24 Trillion Reasons to Buy Gold 13 comments
It is a worst case scenario, but Neil Barofsky, the inspector general for the Troubled Asset Relief Program, has said the bailouts, bank rescues and other economic lifelines could end up costing the federal government as much as $23.7 Trillion. To put this number into perspective, it is nearly double the nation’s entire economic output for a year, more than the cost of all the wars the United States has ever fought combined and the most the federal government has spent on any single effort in American history. It is about $80,000 for every U.S. citizen.
Printing and borrowing $800 billion to hand over to the banks with no strings attached never seemed like a good idea. We wrote about it back in October of 2008 in this article. And despite some 80% of Americans being against the bailouts, our elected officials decided to hand over taxpayer money to their banker buddies anyway.
A soon-to-be released report by special inspector general Neil Barofsky finds:
Many of the banks that got federal aid to support increased lending have instead used some of the money to make investments, repay debts or buy other banks. It is not clear whether the report will also disclose the banks’ use of the bailout money to pay executives fat bonuses which they used to buy gold toilets and prostitutes, and to lobby Congress to stop any meaningful reform.”
It is infuriating and does not bode well for the U.S. dollar or our economic future. There is a point on the horizon when foreign governments and banks are going to stop buying our debt and holding our dollars. First we had news that the 2009 deficit had already topped $1 Trillion for the first time in history. As if that wasn’t bad enough, the sticker shock from this latest estimate is really going to upset some of our Eastern trading partners.
A figure like $24 Trillion just might be the breaking point for an already furious Chinese administration that has thus far been willing to support the dollar and our government’s spending binge for fear of losing American consumer demand. The tipping point comes when it is no longer worthwhile for China, Japan and others to continue financing America and propping up our sick economy. While I used to believe that point was still a few years away, it now seems to be rushing upon us full throttle.
This of course is going to lead to a massive sell off in the dollar and fireworks for precious metals. If you aren’t already invested in gold and silver, this is likely your last chance to buy gold for under $1,000 and trade in those paper promises for something of real tangible value that cannot be printed out of thin air. When the dollar collapse begins, I expect the drop to be fast and furious. Savvy investors will want to be positioned well before the bottom falls out.
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