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<p>[QUOTE=&quot;RGJohn777, post: 789629, member: 22102&quot;]<b>Yup</b></p><p><br /></p><p>You&#039;ve got it. The official debt is some $12T, but the Unfunded Liabilities are pushing $70 TRILLION FREAKIN DOLLARS. This is social security, medicare/aid, the various trust funds, service on the debt, etc. </p><p>#########</p><p>So since you and I seem to agree that PM&#039;s more/less hold their value; do you think that 40 or 50 years hence, currently priced at $1100 Au should have a year 2060- 2070 pricing 6 times as great as at present? Still representing that same value or purchasing power equivalent (new toga and sandals, etc)? That&#039;s the way I lean anyhow, just curious if we still see I2I.</p><p>##########</p><p>&nbsp;</p><p>There is no politically viable way that this tab can be covered by any combination of tax increases or benefit reductions - other than outright default and I don&#039;t give that much chance. Their only solution is to monetize this sucker and that means paying it with warm dollar bills hot off the presses. I read where they estimate they must devalue the dollar by half in the next 12 years to even get within striking distance. </p><p>####</p><p>No problem. It lost nearly 25% in the last 10. And remember that inflation is exponential, not linear in its growth. Or perhaps a better model is the amount the currency has been devalued. That is negative exponential.</p><p>##### </p><p>They will attempt to do with without crashing the dollar or hitting hyper inflation. Will they be successful? WTF do I know? The problem I see it is the elected officials unwilling to do anything but kick the can down the road.</p><p>##########</p><p>Maybe because they will be dead by the time anybody wakes up to the fact that they&#039;ve devoted themselves to self-serving personal interests, rather than the good of all as they were hired to do. And before they die, they will have lived luxuriously upon the wealth of those whom they rule. (us)</p><p>########</p><p>&nbsp;</p><p>and so it goes,</p><p>&nbsp;</p><p>peace,</p><p>&nbsp;</p><p>rono</p><p>&nbsp;</p><p>&nbsp;</p><p>QUOTE=Vess1;788440]<b>“The most powerful force in the universe is compound interest”</b></p><p>########</p><p>And it too is exponential and not linear in its growth. Frankly our species seems to have trouble grasping expo growth. We seem to largely see things as being linear. That they have a nice straight gradual graph.</p><p>Compounding, and the next compounding which includes the result of the previous compounding, and the third compounding ....sorry I&#039;m running out of rice to place on each square of my chessboard.</p><p>##########</p><p>The very fact that we can carry so much debt only tells us that it hasn&#039;t been long enough yet for it to hit the wall! From 1940 through the late 70s, the national debt managed to stay flat and under 500 billion the entire time. This whole time period it was still manageable with little growth.</p><p>#########</p><p>But &#039;they&#039; think it is still manageable because between &#039;40 and &#039;70, gold was $35/oz. Of course that changed ( or began to) in the 70&#039;s. But these things aren&#039;t like a twig snapping, more like one bending until one day, ah it touches the ground!</p><p>But 30 times $35 is $1050. Today&#039;s gold price.</p><p>And 30 times half-a-trillion (500 billion) is, tah-dah!, 10.5 trillion!</p><p>SO once again, that &#039;archaic relic&#039; seems to have had something to tell us. Perhaps.</p><p>#######</p><p>&nbsp;They didn&#039;t hit 1 trillion until the early 80s. Now, in 2010 it&#039;s up to 12.3 trillion with projected 1 trillion dollar deficits ANNUALLY as far as the eye can see. </p><p>######</p><p>So which way will gold prices ( in American dollars) go? Not minute-by-minute of course, but isn&#039;t the eventual, inevitable (uh-oh, danger lurks in that word), many-years-from-now price of gold&nbsp; going to be larger? While still retaining the same value.</p><p>#######</p><p>Despite inflation, this is a drastic change in policy that has only been happening for a relatively short period of time. People can&#039;t wrap their minds around the figures anymore.</p><p>#####</p><p>AMEN!! And that too is what &#039;they&#039; want. Pat you on your head, smile indulgently, chckle to one another, and reassure you that it&#039;s all best left to them, the &#039;experts&#039;. And hey, &quot;How &#039;bout them Broncos?&quot;</p><p>########</p><p>You give it another 20-40 years of this and it will not be able to sustain at this rate. At some point, tax revenue will not pay the compounding interest on the liabilities.</p><p>#####</p><p>Years ago, we blew the problem off by saying &quot;We only owe it to ourselves&quot;. The eocomists, et al who blew that smoke up our fannies lived sumptuously, raised their families and are now long gone.</p><p>Today however, we are no longer the ones who hold the notes due and payable. When our companies felt that foreigners owed us, the government helped them collect. ( You&#039;ve heard of the Cuban Embargo. Fidel nationalised &#039;our&#039; property. Naughty.)</p><p>So, when the piper has to be paid......................</p><p>Either we try to nuke&#039;m ( we&#039;ve got 12000 warheads!) and deny the debt, or ..........we pay up. And since as you point out, it ain&#039;t no way, no why, no how possible, we might be forced to hand over the keys to the castle. </p><p>####</p><p>Something has to give. Maybe some new creative math? Who knows. 2010? Sure. We&#039;re great. 2040? Nothing would surprise me. </p><p>&nbsp;</p><p>We only got to this point because of a lot of foreign lending that will not be happening anymore. </p><p>#######</p><p>Now here we disagree ( respectfully ). I think they ARE gonna keep lending to us. Just as long and as much as they think it&#039;s going to take.</p><p>Then they&#039;re gonna &quot;liberate&quot; us . But even then, a few 1/10 oz American Eagles might get you a favor from a member of the PLA when you need it most!</p><p>#####[/QUOTE]</p><p><br /></p>

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