Per today's Washington Post-January 24, 2011-the US economy grew at the annual rate of 3.5% for the last 3 months of 2010. However, the interest on the national debt was $148.2 billion for the same last 3 months per the Post too. This means that on an annual basis the GDP will grow by about (3.5% x $14.3 trillion) $575 billion but the interest on the national debt for the calendar year will end up being (4 x $148.2 billion) $600 billion. In other words any new growth in the economy is totally cancelled out by interest payments on the national debt alone. The total national debt for 2011 is projected to be about $1.5 trillion. Since national debt spending is part of our GDP what we are really seeing is that any 'growth' in our economy is just accounting magic. The bottom line is that the real economy is shrinking yet ever more dollars are being printed. Eventually this can means only more inflation and which when coupled with an ever higher tax burden for those who work will translate into even more economic stagflation. This whole thing is just a con job by the Washington/Wall Street cabal. Precious metals will eventually make a big comeback.
Try this interesting chart comparison. Go to the following link:
(replace the “_” with “.” in the address line. Many times messages don’t post if a URL is identifiable)
On the left side of the page is a “Compare To” category and a text box with the word “Symbol(s)” in it. Place DJIA in that box and select “reset” (just to the right of “Chart Options”).
Now move your mouse cursor across the chart until the date on the chart reads 3/9/09; press the left mouse button down (if you’re right-handed) and drag all the way to the right from the 3/9/09 date on the chart and release the mouse button. The result should show that USAGX (as a less expensive leveraged proxy for PMs) has just broken below the DJIA chart pattern. This indicates (at least to some of us) that the billions and billions of printed money are being used to manipulate precious metals to the point where they no longer seem to be a good investment. Given debt levels this may indicate that US Government/Fed/Chinese interference in the precious metals markets has nearly run its course because of the cost. Time will tell.