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?
PING!
Just finished watching the videos. I already knew that things are bad, but actually watching it is very frightening. I really wish that I could buy gold and silver, but I cannot afford it right now.
I am telling my family members to diversify their portfolios and put some of their investments into gold and silver.