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Gold and silver bullion are a well known source of protection against inflation, but to hear the government tell it there is no threat of inflation whatsoever.

January 17, 2011 – Gold and silver bullion are a well known source of protection against inflation, but to hear the government tell it there is no threat of inflation whatsoever. They have the ship of state racing full sail past the warning buoys heading straight for the whirlpool dead ahead.

That whirlpool is the debt spiral into which countless Americans fell while the government sat idly by. It begins with a decreased ability to service debt, which causes credit ratings to fall, which causes interest on the debt to rise, which decreases the ability to service the debt . . .

Our ability to service the national debt came into question long ago and it is only the dollar’s image that has held it up this long. Slowly the world is waking up to the reality that the dollar is not invincible, however, and sooner or later we will have to pay for the increased risk.

China got the ball rolling right after the announcement of QE2 when Dagong Global Credit Rating Co., Ltd., the first domestic rating agency in China, dropped its US rating from AA to A+. The markets completely disregarded the Dagong report, but its projections of long-term recession and degradation of our national solvency have the ring of truth. Besides, China holds the biggest chunk of foreign held US debt and they take the report very seriously.

Now both S & P and Moody’s have renewed their warnings that they too will have to reevaluate their US ratings if the government does not stop expanding the national debt. But instead Washington is voting to increase the deficit even more.

The whirlpool is already pulling us in. Once the debt spiral begins runaway inflation is the only possible outcome. Don’t let it swallow up your worth – invest in gold and silver now.

Shannon King

Senior Staff Writer – GoldSilver.org

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