Originally Posted by
JsJs24
That's a good article Stray. I do believe a financial bankruptcy is under way in America. How long will it be before it occurs no one can predict. However, it has to be in the next 10 years, and probably sooner in my estimate. The fact that the fed announced it will use more quantitative easing and permit inflation of about 2% per year is proof that we are headed down a dangerous path and the government and federal reserve are almost out of ideas. They have already created a liquidity trap, with interest rates near or at zero percent. Thus, to add more quantitative easing to the problem can not yield good results. To say they will permit 2% inflation is nonsense and a lie as usual. How can they control inflation to a precise level such as that? Inflation is a result of the velocity of money. Once velocity kicks in, inflation will run rampant based on the amount of velocity. Conversely, if velocity does not kick in then we will end up with another recession. The reason we don't have velocity in the economy is because banks aren't loaning money and businesses aren't asking for it in most cases. However, now that the president is starting to force banks to give out loans, we will see the velocity pick up, which will kick in inflation. The money that was created has not circulated through the economy (velocity), but once it does look out, and expect very high inflation if so. What we have to hope doesn't occur is hyperinflation, which would be the end of the U.S. Dollar. I am thinking the stock market will crash again in the near future, gold will continue to rise, and the dollar will grow weaker. When the market tanks this time people will be scared of what to do with their money, and I think most will buy gold as a hedge, though I do not believe it is a good hedge, it will prove to be better than the dollar until the government bans it, which I also think is very likely. Chaos will hit our country like never before, and we will then realize that the great founders were prophet like in their warnings about fiat money and how it would destroy the country. That is what we are witnessing. Let's hope something good happens but I don't see any way out. Some will say that a Republican majority house and senate could fix things, well, look at how much they've spent every other time they controlled the houses. Even under Reagan the size of the federal government grew. But then some will say they have learned their lesson. Really, and we are going to believe these lying thieves. The politicians have been deceiving us for 200 years, or every since Jefferson left office. But we think its going to be different this time, like they actually care now, and we should trust them once again. Yeah right. I'll believe it when I see it, but until then I will remain skeptical at best.