Buy Gold: Debt crisis in the U.S. much larger

Gold Investment - 14 November 2011

Nowadays we hear and read a lot about the debt problems experienced in Europe, but the truth be told, the debt crisis in the U.S. is much larger than the debt crisis in Europe, and it is getting worse. Now you can choose to believe the mainstream’s take on it or choose to go off the main road in search for an alternative point of view.

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Invest in precious metals today! Contact us for details.

The European Central Bank (ECB), “…the institution of the European Union (EU) that administers the monetary policy of the 17 EU Eurozone member states…” (Wikipedia), has pretty much taken the same steps as the Federal Reserve (the Fed) in the United States, although not nearly to the same extent. Thus, contrary to popular believe, the predicament the Eurozone members (nations) find themselves in at the moment could not have been averted by following the example of the Fed, because the ECB has indeed followed the example of the Fed to at least some extent. The ECB has for one lowered its “…benchmark interest rate by 0.25% to 1.25%” (European Debt Crisis Facts and Truth, The National Inflation Association, 7 November 2011). In fact, the ECB has proven beyond a reasonable doubt that price stability is no longer one of their primary objectives (mainly due to political pressure). Yes, the ECB benchmark interest rate of 1.25% is not as low as the Fed Funds Rate of between 0% and 0.25%, but it is still pretty much one of the main ingredients needed to give rise to severe inflationary pressures further down the road. 

Invest in precious metals today! Contact us for details.

Invest in precious metals today! Contact us for details.

Furthermore, it is no secret that European leaders announced in late October that they not only “…agree to give Greece new rescue funding of €130 billion, but in an additional part of the agreement, banks holding Greek bonds have agreed to accept a 50% haircut on the money they are owed by Greece. Greece Prime Minister George Papandreou, instead of accepting the deal on his own, announced that he was going to hold a referendum so that Greek citizens can vote on the deal” (European Debt Crisis F acts and Truth, The National Inflation Association, 7 November 2011).

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