Posted on 11/07/2010 8:02:46 PM PST by Tolerance Sucks Rocks
http://www.youtube.com/watch?v=po6HhQ1ZRxE&feature=player_embedded
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The US is bankrupt. It cannot repay its debts. When that becomes clear, and the public moves from denial to anger, they will seek any justification or excuse to disavow the debt. Such will not be hard to find:
Most Federal spending since the 1930s has been Unconstitutional. Progressive (non-uniform) tax rates are Unconstitutional. Fiat money is Unconstitutional—the Constitution forbids anything other than gold and silver coins being used as “Tender in Payment of Debt.”
So the US could simply revert to the Gold standard, issue a new gold-backed currency, repay its bond holders using the old currency (which the government disavowed as redeemable for gold or anything else back in 1972,) and inform any who object to that it’s their own fault for lending money to an illegitimate government borrowing and spending in violation of its own Constitution, using a currency prohibited as being used as legal tender by that same Constitution.
It won’t be long before this end-game becomes obvious to everyone. It’s the only way out. When that happens, the bond market will stop lending any funds whatsoever to the US government, and progressive socialism will die.
Sidn’t the other QE2 once run aground ?
What will QE3 bring?
Bubble, Crash, Bubble, Crash, Bubble...
http://www.hussmanfunds.com/wmc/wmc101108.htm
P.Galt posted this in another thread quite interesting
This guy scares the bejesus out of me. From what I read other places, what he says rings true. Whether you listen to Peter Schiff and the Austrians or some of the Chinese economists, the real question is “when” not “if”. That’s the scary part because while we may acknowledge this stuff intellectually, we go on acting like it’s 1980 again.
So, what should we do? There’s not enough gold in the world for even a small fraction of “us” to dump our stock portfolios or whatever and hold only gold. If we’re screwed, then we’re pretty much ALL screwed, as I see it.
What’s this guy got wrong? And if he’s right, what do we do about it NOW?
From your lips to God’s ears.
PING!
$10,000 for a six-pack of beer?
Well, we’ve all got money in our Monopoly sets. And maybe the folks in India and Indonesia will give us a dime.
But luckily...our sister company can insure u now...It will just cost a lil more.... Do u want to go without insurance AGAIN??????
You should be scared...
Now that you are awake to the problem maybe you should start to prepare in order to take care of your family...
Maybe we could sell California to the Chinese?
Yes, a dime. Pre-1964. Near-100-percent silver...
Kalifornians would actually have more liberty under such an arrangement...
Closer to 70% silver, actually.
Get clear before the gold runs out?
Personal insight. My great-grandfather had a fat portfolio in 1929. Thought himself rich. Lived very, very rich. Bought lots of nice cars, houses, diamonds. One day he discovered his wealth was mostly abstract and had vanished. Try to put yourself in his shoes. One day the accountant says you're worth fifteen million. Next day the accountant says you're worth about ten grand and it's a good thing you still got that pumpkin farm.
I should add that thanks to great-grandma, we still have a lot of those diamonds. Not sure he ever knew...the details are lost to history. I like to think they hung onto the gems in case people ever stopped eating pumpkins. Point is, if you've got a portfolio, beware: it may be written with vanishing ink. Diamonds and pumpkins is the way to go.
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