Gold and silver got slammed in the last 48 hours, just two days ago gold and silver were at their multi decade highs. Now according to the media, the bubbles that no one bought are bursting. Of course when the S&P or the Dow fall investors are told to buy on the dip and to expect these mild corrections. Gold to be a good investment though can only go up in the eyes of the CNBC talking heads and others, any down movement is a clear sign that their sell gold at $500 was in fact the right thing to do 6 years ago when they first called gold a bubble. Anyone who actually believes that gold is in a bubble, please read our ‘Gold 1980 Vs. Today’ article. If you think silver is in a bubble please take 6 minutes to review our video, ‘Silver Shortage This Decade.’ For current pricing on gold and silver please visit our homepage at FutureMoneyTrends.com.
Last weekend when Austan Goolsbee warned that not raising the debt ceiling would be “catastrophic” he was right. Just like if you took heroin away from a drug addict, in the beginning it would be painful for them, they would suffer withdraws, and it might even feel like a catastrophic event in their lives. In the end though, it would be the best thing possible for them. The healthy choice.
We have one question for Mr. Goolsbee, “Isn’t continually raising the debt ceiling going to be catastrophic at some point?” Remember, the very first trillion dollar deficit took our nation 204 years and the last trillion took 7 months. We are now in the exponential growth phase with our debt, during 2010 the debt grew by 4.3 billion per day! Our official debt now stands at 14 trillion dollars with the debt ceiling currently at 14.294 trillion. This number was set by Congress and signed by President Obama just last February, back when the debt stood at 12.3 trillion.
Of course it is comforting to know that some of our politicians while on the campaign trail have come out against the insanity of never ending deficit spending. Here is quote from a politician in 2006, clearly he is someone who is a deficit hawk.
[su_quote]The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a sign that the U.S. Government can’t pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. … Increasing America’s debt weakens us domestically and internationally. Leadership means that ‘the buck stops here.’ Instead, Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren. America has a debt problem and a failure of leadership. Americans deserve better.[/su_quote] Senator Obama
Many of our newly elected officials are saying the same thing now. Will they be any different? Only time will tell.
FutureMoneyTrends.com believes that the debt issue has to be faced now before it is too late. Facing it now will give us better terms rather than later when it’s on the world’s terms. Kind of like someone who is 90 days late on their mortgage, taking action can ease the pain and shock, but waiting will only result in the bank setting the terms, foreclosure and an eviction.
America’s Notice of Default (90 days late)
Former China central bank advisor calls to cut U.S. treasuries
All five of China’s credit rating agencies reduce U.S. credit rating
World Bank issues 1st Yuan bonds in Hong Kong
Commodities make new highs
December 2010 set new records for world food prices
Bond yields rising
It’s time to change course in America. We have roughly 6 months until QE3 rumors start. Maybe a year left until California officially asks for a bailout, not likely by the way with a Republican house. Less than a year until a major city files bankruptcy, our money is on San Diego, but you literally could throw a dart at a major city and be right.
We can’t encourage FutureMoneyTrends.com members enough to please spread the word about our site. We believe there is a MASSIVE wealth transfer taking place this decade, if people continue to ignore their investments in the old economy, their wealth will literally be history. FutureMoneyTrends.com’s goal is to help find strategic investments during this massive change in demographics, national power, and political insanity.
Final note as we begin 2011:
Continue to focus on the fundamentals, remember with stocks rising on cheap money any idiot can have a winning portfolio (BOOYAH Cramer). Even the guys at Edward Jones and Ameriprise had their portfolios in the black last year. However, there is a HUGE difference between increasing your wealth over the next decade and increasing your nominal account value.
With quantitative easing it is hard to imagine our investments going down in 2011, especially our natural resource plays. When congress inevitably raises the debt ceiling and Obama signs a new debt ceiling into law, consider the raising of the debt ceiling a belated Christmas bonus you didn’t really want but will certainly accept. Raising the debt ceiling will raise the price of gold, silver, oil, wheat, healthcare, Asian related stocks, heck stocks in general.