Reliable according to what yardstick? Predictable politically? Or economically? Economics is not something you can predict, or if you could, you would be a gazilloinaire.
The implosion of US debt, its W.T.D., its disastrously declining technology growth, and declining productivity is not related directly to "world events", or traditionally is thought not to be, except where it can be discerned that it propels US political action to alleviate the situation or gain better leverage in the energy world.
What matters to the economy, and hopefully gold, is what is directly related to that sick green puppy that isn't worth the paper it's printed on. Could it be that to pay debts that cannot be paid for by production, govmint just prints hugie amounts more of the suckers? At -1% interest that could be happening naturally. What happened to Japan could happen to the US.
Facts are (now that we are on the soapbox), the precious G7 service economies are phony credit, not production economies. The money supply is ballooned to create surpluses that can be plundered by government to feed a ever growing civil service. This government pork barrel is 90% of the service that is the service economy. G7 countries are classified as roughly 65% service economy, and maybe at best 15% production i.e. agriculture/mining/manufacturing. Now stop a minute. Why should "service" suck up 4 times as many dollars in an economy, as those industries it is supposed to serve? --> Because maybe that "service" has nothing to do with industry service. It's all govmint.
Digging a little deeper, we see that that in fact all the income and corporated tax dollars we raise barely pays for medicare, let alone the myriad other government services that make up the vast majority of the "service industry". Why? It is simple. Govt's have deliberately increased their share of the pie, and shrank industry by over regulation taxation, and enabling mechanisms that allowed excessive wages levels. Income tax is what has allowed this government funding beast to become the Hideous Hydra it is today. Income tax, unions and socialism has marched hand in hand since the rise of really big government. Without high wages and higher income tax, socialist top heavy government economies would not work.
How do we reverse all this? Not by merely voting republican, or conservative? They ain't going to cut the umbilical cord either. Anarchy and revolution is needed. It has to come from the ground up.
People!
Revolt and quit paying taxes before it is too late! Let's lead a movement towards rational government expenditures before we drown in a sea of government created sloth and debt.
In the midst of this, as we career to economic disaster in a AA fueled V-12 handbasket on mag wheels, gold's inherent value seems to be assured.
Which is precisely what Doug Casey seems to think too.
EC<:-} |
