Its funny to watch how the mainstream media has spun this "debt ceiling crisis." First we learn that there is a crisis: the gov't could default on its loans like so many families have in the past few years (heck, past few decades, really!) because of overspending. The consequences? . . . something terrible, certainly. A lowering of the country's credit rating, devaluing of our bonds and currency, senior citizens, disabled persons, soldiers and any others who rely on the gov't for their daily bread will go without for at least a month. Upsetting, at least, and possibly enough to lead to a stock market panic. Well, the two sides fought mightily down to the wire. The media took especial care to show how tense things got. The president even WALKED OUT OF A MEETING!!! But, when the dust settled, the two sides found common ground for the good of the country. Obama signed the bill to raise the debt limit and saved the day. or did he??? As many of you probably already know, he most certainly did not save the day. He only delayed the inevitable currency collapse. It is as if a family with maxed out credit cards simply called the credit card company and asked to raise the limit. Instead of taking a hard look at the budget, they simply said, "Well, maybe we'll do something about our spending next year." and went on with business as usual. Not only will we STILL DEFAULT, it will be an even more spectacular default than what we were facing. The devaluation of our bonds and credit rating will be even more severe. The market panic and inflation that will follow? Even worse. So those of you with plenty of gold--it is a day to celebrate. The gov't has ensured that your investment will be worth even MORE on the day when the worthless fiat currency finally collapses.
You are right when you say that those of us with plenty of gold in our stock do have reasons to celebrate. I hope Gold will soon touch $2,000 / Oz. But in one sense, it is a bit useless. For example now Gold is worth $1,600 / Oz. When it reaches $ 2,000 / Oz, lets say 3 months later, the purchasing power of that $2,000 after 3 months will be same as that of $1,600 now.
You raise a good point. We certainly shouldn't be celebrating the fact that the american gov't didn't do anything to take care of its debt, but we should feel vindicated that we saw this coming--got out of dollars and into gold when we did. On the flip side, I feel sorry for the people who did not have the same foresight. When people ask me what to do with their dollars today, I am tempted to tell them "Canned goods and bottled water!"
So do you guys think it's too late to get into precious metals for the people who've been holding back?
Doesn't hep the government's cause that S&P lowered the US' credit rating either. Even an institution that relies on a strong and functioning economy is showing they're faith is dwindling as well. It's never to late to get in on the precious metals game. The only issue now is that people will pays substantially more now than they would have years ago. The only way I see the prices dropping is years from now IF the US gets it's act together and the economy picks up and is somehow stronger than before the recession. VERY UNLIKELY. Best time to start is times like these.
It would never be too late until a gold / silver standard is reestablished. Even then, one would simply be exchanging one form of bullion for another, ie one form of currency for another. In such a case, one would lose a small amount of value for the transaction fee.
Yes, it's a great step for bullion owners. However, it is also just kicking the can further down the road toward eventual collapse. As Ron Paul as stated, the collapse is coming and the sooner it happens, the lesser the effect will be. This action simply delays the collapse. When it comes, EVERYONE will be affected. It won't be pleasant for anyone. Certainly those holding bullion will fare better than those without. But life will be very different for all of us, including the bankers. Communication & transportation lost producing food scarcities. End of banking as we know it. Personally, I would settle for the value my bullion has now than look for a collapse further down the road. Let's stop kicking the can and get through this.
Sorry if it's not considered kosher to raise new threads but this is interesting. I agree. What I can't figure out is why the media picks and chooses so much on an issue that will affect everyone. First it's the fault of the Republicans/Democrats, then it's big business, then it's the banks, then it's the government, and on and on it goes. Why the finger pointing and hypocrisy? With a little budgeting and a reduced government, I think that they could pay down some of the debt before defaulting and thus make the recovery easier for the country. It would hurt now but at least the US would still have the infrastructure in place to build itself back up over time. Since that's probably not going to happen however, I think that things will only get worse from here. If they continue to prolong the inevitable without making drastic changes I just don't see how this nation will make it through.
I have a feeling the dollar will die through hyperinflation before we even get close to a gold standard. Politicians and businesses love fiat currency.
