According to Washington D.C., the debt issue has been resolved and default has been avoided. Posted by James Randolph on August 03, 2011
August 3, 2011 – According to Washington D.C., the debt issue has been resolved and default has been avoided. Now the country will live within its means…and we will live happily ever after. Sounds like rubbish.
Let me explain.
- President Obama signed a debt compromise that holds the president and Congress responsible together (as a team!!!) to decide on future spending and cuts. If they couldn’t do it now, what assures us this won’t happen again?
– $400 billion NOW plus $500 billion more up until February 2011.
– Oct 1st – cuts begin…over a ten year period the deficit will be reduced by $917 billion
– Nov 23rd – A bipartisan committee will decide on cuts or revenues of $1.2 trillion – $1.5 trillion.
The ‘compromise’ is superficial. Where they cut and by how much was and will continue to be the problem along with unprecedented spending. These issues could soon make headlines and shake us up once again.
- The stock market discernibly fell yesterday as a result of the controversy within the economy. But, didn’t Washington just fix the mess up? Or are some people still worried…some who have lost faith and trust…some who believe what their eyes and ears together manifest. Large companies had weak economic and poor earnings reports which together are facts before our eyes that tell us the economy is not ‘fixed up’. Investors are apprehensive, and with good reason.
Economy growth is lethargic since the ending of the recession in 2009, so where is the new economic growth supposed to come from? At the present time, manufacturing in the US has decreased and unemployment is increasing. How are the middle class and poor supposed to consume?
- A 10 year Treasury note yields less than 3% which because of inflation is actually yielding negatively. But they’re safe-havens with the backing of the good faith and promise of the government!
Despite theses true adverse statistics, you can still abandon the negative and focus on the one positive thing in this economic chaos…gold is soaring! And if you’re a cynic, look at this:
- Gold has gained 1.4 percent to $1,645 an ounce.
- Almost everything fell on the stock market EXCEPT gold!!!
Gold works in favor of an unstable economy which is what we have and will probably continue to have for generations to come. The weakening dollar is actually causing gold to continue its
upward path and because it’s the reserve currency of many other countries money as well, they, too, will fall with the dollar.
Gold is a store of wealth and one of the LEAST volatile commodities that exist. It’s time to invest in something that carries the backing of thousands of years as opposed to good faith and promise of a rather uncertain entity. Be smart. Invest in gold, NOW.
Senior Staff Writer – Certified Gold Exchange