I am a libertarian leaning Constitutionalist. I guess I would qualify as a teabagger, but I am a long gold holder. It seems that these 2 are inconsistent with one another. I like the tea party, but I am a wee bit scared what may happen to my gold investment way down the road if these folks get in and start taking axes to the budget..who knows if we start balancing the budget or even running a few surpluses, me thinks the price of gold may go south- in a big way. I know what youre thinking-that the debt is too far gone..I think that to..its some 60 trillion and Ive posted that its too far gone,,,but if the entire country wants to pull together to solve a problem of this magnitude- I guess it could be done...It would be a miracle- ..what say u..anyone???
I am but one person with an opinion - and you know what they say about that!
There is the existing debt, the existing deficit and the existing trajectory of the deficit. There is the bulging baby boom retirement wave and the empty social security account. There is the growing medicare/medicaid bubble and the recently added drug prescription act. There is the new mandatory medical insurance scheme, too.
Depending upon your arithmetic, the current debt is somewhere between $6x10^13 and $10^14. Balance all that against a current GDP of $14x10^12.
I suspect the tea party candidates will do well in the coming election. But even if the whole lot up there in DC were to be replaced by fiscal conservatives, I believe it is too late. If we were to divert ALL our output to repaying the debt (an absurd notion, for what would we eat?) and cut government expenditure to zero (yeah, right), it would take between four and seven years to repay.
And just to make matters even worse, Europe is in a similar predicament.
I hope I am wrong, but fear I am right. Therefore we have currently 14% of our total worth in Au & Ag bullion. This position has been increasing in recent months. I expect it will continue to do so.
People will not be interested in solving the debt problem until they feel the consequences personally, and by then it will be much too big.
Look at Greece, they are only tackling their debt now. It requires a bailout from countries many times their size. Who is going to bail out the United States? By the time it turns into a crisis our national, state, personal, corporate, and other debts will exceed the annual economic product of the planet. The global financial system will simply collapse.