Buying gold today is the only way we will be able to buy anything in the very near future. Posted by James Randolph on June 16, 2011
Deal with it – buy gold today.
June 16, 2011 – Buying gold today is the only way we will be able to buy anything in the very near future. “The old regime of general economic stability and rising standards of living fueled by excessive credit are a thing of the past,” says renowned scientist and economist Chris Martenson.
The problem goes beyond just the deficit; it stems from the abrupt end of 40 years of exponentially rising total credit market debt. Because we used credit to sustain consumption rather than to foster economic growth, our GDP has fallen far short of what we need to service the debt.
Martenson estimates that credit market debt would have had to rise to $104 trillion in 2010 just to keep us afloat. That is why Bernanke’s wanton money manufacturing had no real impact other than to fatten the wallets of select bankers and corporations.
Pimco’s Bill Gross recently underscored that statement on CNBC, saying that when you add in all of America’s unfunded liabilities we are in worse shape than Greece and the other troubled European nations. Gross pins the real debt at “nearly $100 trillion,” not coincidentally a close correlation to Martenson’s estimate of needed credit. “That’s much more than Greece, that’s much more than almost any other developed country,” Gross says. “We’ve got a problem and we have to get after it quickly.”
Even that is optimistic. From Martenson’s perspective, “no matter what policy tweaks, tax and benefit adjustments, or spending cuts are made — individually or in combination — nothing really pencils out to anything that remotely resembles a solution that would allow us to return to business as usual.”
The largest debt-to-GDP ratio that any nation has ever paid off is 260%. The record goes to 19th century England and it took the industrial revolution to pull it off. In real terms the US ratio today is some three times greater, and it would take a transformative event of even greater magnitude to turn things around. Unfortunately “no such catalysts are on the horizon, let alone at the ready,” Martenson says.
The transition to Zakaria’s “post-American world” is progressing far more rapidly than he ever imagined, fast enough to warrant a new revision of his book just three years after the first. It doesn’t take a PhD in economics or complex models to understand the end game for America’s economic dominance, just common sense and an open mind.
The mantra of the day for all Americans should be “deal with it.” Buying gold does just that.
Senior Staff Writer – Certified Gold Exchange