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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 421.29-0.5%Jan 16 4:00 PM EST

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To: elmatador who wrote (96108)11/5/2012 2:43:53 AM
From: Hawkmoon  Read Replies (1) of 219505
 
Monetary destruction is one of the reasons I've felt the USD will strengthen over time.. I'm not sure the Fed, or the ECB, can contain the level of defaults that will accrue in the next few years by issuing new "debt" at cheaper rates to maintain the monetary base and meet the demand for dollars.

A bet on Gold/Silver is a bet that they can. But this isn't 1929, where US National Debt was a under 50% of GDP. Now we're at over 100% debt to GDP and the taxpayers are limited in how much debt "stimulus" we can service (with the Fed holding it and collecting the interest payments).

The only time the National Debt to GDP ratio was higher was during WWII..

usgovernmentspending.com

The only way we can manage it is either by finding a way to convince other countries to continue to hold our debt, or increase public savings (ala Japan)..

Hawk
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