Few Americans haven’t been burned by credit at some time, and that is what makes debt free investments in certified gold so appealing. Posted by James Randolph on January 17, 2011
Certified gold is forever, good credit isn’t.
January 17, 2011 – Few Americans haven’t been burned by credit at some time, and that is what makes debt free investments in certified gold so appealing. Interest on credit is money that might just as well been flushed down the toilet. And should we falter on payments, that interest will rise as our credit rating falls, making it even harder to make the payments. It is called the debt spiral, and our government is falling into it.
The first sign came from China last November, when QE2 was announced, but it was dismissed as irrelevant, even though China holds the greatest share of US foreign debt. Dagong Global Credit Rating Co., Ltd., the first domestic rating agency in China, lowered our rating from AA to A+. Their report, however, which stated that “the credit crisis is far from over in the United States and the U.S. economy will be in a long-term recession,” is hard to argue. Will we now take heed to the warnings of both S & P and Moody’s that their ratings will also fall if we don’t do something to stop the expansion of our national debt?
Given that Washington is now voting to increase the ceiling on the deficit, that seems unlikely. The indomitable position the dollar once held is losing the necessary clout to back up its position in global economics. "The view of markets is that the U.S. will continue to benefit from the exorbitant privilege linked to the U.S. dollar. But that may change," Says Carol Sirou, head of Standard & Poor’s France, according to the Wall Street Journal.
It is probably too late to prevent the downgrade in credit and the subsequent inevitable inflation, but it is not too late to take shelter in certified gold.
Senior Staff Writer – Certified Gold Exchange