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<p>[QUOTE=&quot;JoeSmith, post: 584900, member: 18021&quot;]I spent some time on usgovernmentspending.com.&nbsp; You can make your own graphs for any time period, and I looked at each decade from 1800 to present (and projected to 2014).&nbsp; Cloud is correct, every decade showed increases in spending and national debt.&nbsp; There were 3 main &quot;explosions&quot; in national debt, the civil war, ww1, and ww2.&nbsp; The graphs show the debt jumping, then gradually get paid down somewhat, then back up.&nbsp; We still haven&#039;t paid for the civil war!</p><p><br /></p><p>The civil war, ww1, and ww2 didn&#039;t affect the price of gold, since we were on the gold standard.&nbsp; We won the war, we showed that we could make payments on our debt, and then we borrowed more.&nbsp; Now that we&#039;re off the gold standard, how do we show we can make payments on our debt?&nbsp; We keep the dollar strong.&nbsp; But the dollar isn&#039;t real like gold was.&nbsp; As long as everyone pretends its worth something, it stays somewhat strong.&nbsp; We have to keep everyone believing.&nbsp; </p><p><br /></p><p>But our economy is having bubbles.&nbsp; Its like squeezing a baloon, and making a bubble.&nbsp; You can squeeae that bubble, but another will pop up.&nbsp; Thats how our government, under both parties, has tried to deal with bubbles.&nbsp; Now that we can just print money, and not have to dig up gold, we have more tools to control bubbles.&nbsp; But I&#039;m afraid these new tools may break the whole balloon.&nbsp; Once a run on the dollar starts, i.e. gold starts to bubble, there&#039;s no popping that bubble.&nbsp; </p><p><br /></p><p>I&#039;ve tried to envision a way to prolong the black hole gold bubble.&nbsp; The Chi-Coms could tell us they&#039;ll back us a few trillion, if we give them amwar.&nbsp; What could we do if they pushed the point?&nbsp; That could buy us a couple of years.</p><p><br /></p><p>The last time we had a gold bubble was Jan, 1980.&nbsp; That was the end of the Carter administration.&nbsp; I think there are a lot of parallels with the current administration and Carter.&nbsp; I think its the prospect of 4 more years of the last 3 months, and Carter&#039;s legacy, that fuels the thought that the last bubble could repeat.&nbsp; The Carter administration saw gold go from $140, to over $800, and settle down at over $500.&nbsp; If Obama repeats, we&#039;ll see gold spike to $4000, and settle to $2500.&nbsp; I think its quite possible, (assuming there aren&#039;t any outside events that will cause gold to soar on their own).[/QUOTE]</p><p><br /></p>

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