January 21, 2011 – How bad do things have to get before Wall Street’s so-called experts stop painting rosy pictures and concede the wisdom of gold and silver investments? Most of the rhetoric against gold and silver either narrowly classifies the metals as an inflation hedge (also a serious threat that they are constantly playing down) or classifies investors as paranoid doomsday prophets hoarding precious metals for an apocalypse that could never happen.
The brutal facts, however, lead to only one conclusion: America is in very big trouble. China has openly declared its intention to take over where we left off, and we are in too deep a financial hole to do much about it. It’s something economist Joseph Schumpeter labeled “creative destructionism” when describing how new industries rise from the ashes of the old, and it applies to nations as well.
All but four states are now operating in the red and many have no hope of climbing out because out of all the money the states take in only 17% is discretionary, far too little to effect real change. As more states follow New Jersey’s budget-slashing lead, more and more cities will follow Camden’s as they are forced to drastically cut vital services.
There is probably little we can do to avert social/economic catastrophe – and plenty of good reasons to just let it happen. We can rebuild a leaner, stronger America and regain a position of leadership in the global community – but only if we have preserved the wealth to do so.
The dollar has had its run and we are heading towards a period of hyperinflation during which vast wealth tied to traditional assets will simply evaporate. The value of gold and silver investments, however, will endure and be the foundation of the rebirth of the American economy.
Senior Staff Writer – GoldSilver.org