Its important to consider the differences between 1970's problems and today. Back then, America had a vibrant industrial economy. Today, the U.S. economy is 70% based on consumer spending and debt. Federal Government Debt has grown enormously since 1971. In 1980, on the day Ronald Reagan was elected, the National Debt was $972 (B) Billion. In less than 30 years, the debt has soared to over $12 (T)Trillion. The 2009 Budget Deficit alone was over $1 Trillion Dollars.
Monetary Inflation Ends in Rampant Price Inflation
As unbelievable as it sounds, since the financial crisis unfolded in mid-September, the U.S. Government has committed another $8.5 Trillion for taxpayer bailouts.
That sum is more than twice what we spent on NASA, the Vietnam War, the Iraq War, the New Deal, the Korean War, the S&L Crisis, the Louisiana Purchase, and the Marshall Plan combined!
When you hear — "This is the worst economic crisis since the Great Depression— " believe it!
Never before has the U.S. Government seized, nationalized, or bailed out Wall Street Banks, brokerage firms, the mortgage industry, plus the world's largest insurer. Corporate giants like GM, Ford, and Chrysler have all faced the threat of bankruptcy. The size of the structural failure of the world's financial system leads us to believe that we're headed into an era much like the Great Depression.
Stop the Insane Borrowing and Spending
On top of a National Debt of $12 Trillion today, President Obama has planned for a 2010 budget deficit sure to exceed $1 Trillion Dollars.
President Obama, heed our words— "nation can borrow and spend their way to prosperity."
The magnitude of the financial crisis of the 1970s pales in comparison to what America faces today. That leads us to wonder— if Gold multiplied in value over 24 times in the 1970s, where will Gold prices end up before this crisis is finally over? Is it unreasonable to see Gold hitting $5,000? Or is 24 times the $258 low for Gold $6,192 out of the question? An honest answer is, we just don't know. If the U.S. really tries to borrow such a massive amount of new money from foreigners, will they say no? If so, are we on the verge of destroying the U.S. Dollar as the world's only reserve currency... then what?
Fire Your Stock Broker
There are vital lessons we must all learn from the Stock Market crash of 2008:
• Your Stock broker's "Buy and Hold" Stocks philosophy has been proven to be an absolute failure.
• Most diversification plans failed during the 2008 crash as the value of Stocks, real estate, high-yield bonds,
and commodities all got killed but not Gold.
• A plan of diversification for 2010 that doesn't include Gold is less than half a plan.
Perhaps it's time to fire your stock broker or your financial consultant if they did not recommend Gold to you a long time ago.
If you had bought Gold in January of 1999, you would have quadrupled your money through December of 2009. Over the same ten years, the S&P500 Stock Index lost 26% in value.
As we look at the world economy beyond 2009, we are more pessimistic. The U.S. consumer-driven economy is gone forever. We cannot grow and prosper as a nation flipping hamburgers, shopping online, and trading Stocks with each other. Nor can we borrow our way to prosperity.
Avoid All Unnecessary Risk in Stocks
Until a future time when America stops the insane borrowing and spending, we urge our wealthy friends to avoid risky Stocks (and Bonds.) We've seen that Stock markets can (and often do) fall in value by 80%. Invest carefully.
In our opinion, it's time to build a fortress of safety and protection around your life savings. Be defensive, the primary goal today must be wealth protection. Banks are broke, the government is broken, and the financial world has been turned upside down. We are all left wondering what to do next— besides hoard Gold.
In these uncertain economic times, we remain convinced that investors need to own more Gold to survive, thrive, and prosper. What's the best private, non-reportable gold? How can you buy gold?
All the details are inside our "2011 Gold Profit Update." to read the full report.
Questions? Call a Gold Specialist at 1-800-668-8771