This comes from Richard Young's mass email blast ..... trying to sell his newsletter.
Inflation is a ticking time-bomb,
but you shouldn’t buy gold!
Ben Bernanke keeps interest rates near zero because he thinks it will jump-start the economy. Moreover, he claims that deflation is a realistic threat to your wealth.
Here’s why: With deflation, Washington would have to pay off all its debts with more expensive dollars in the future.
That could double or triple our interest payments, explode the annual deficit past $2 trillion a year, and bring the entire global financial system to its knees.
So forget about deflation.
Ben Bernanke and the Federal Reserve’s declared strategy to keep interest rates near zero until 2013…or 2014…or 2015…is a blinking neon sign that they will pull out all the stops to prevent deflation from taking hold.
What you should be worried about is inflation.
Inflation is the only way to treat a gaping fiscal wound like ours—by repaying our debts with cheaper dollars. It’s baked in the cake—sudden and debilitating and coming much sooner than you think.
Don’t believe me?
Consider this: Over 60% of all the outstanding U.S. debt will mature over the next three years! With this mountain of debt to be rolled over, do you seriously think our buddy Ben Bernanke is going to refinance that debt at higher rates?
When we’re already running budget deficits of $1.3 trillion every year?
The results of the inflation coming our way won’t be pretty.
Inflation will devastate holders of bonds and other fixed-income assets. That only includes every retiree, every major pension fund, and all the kind foreigners who have been buying our debt since Uncle Sam decided to go on tilt on the national credit card.
Never forget that the bond market is 3 times larger than the stock market. Big inflation is going to hurt—a lot.
How do you protect yourself? Gold is the most popular way to protect yourself from runaway inflation and a crippled U.S. dollar.
As the U.S. dollar goes down, gold and other precious metals only get more valuable.
But there’s a better way to play the inflation angle than gold: Silver. It’s simply a much better value right now, so that’s the smart move.
Portfolio Action Plan :
I personally am looking to buy silver whenever it dips under $20/oz. You should too. The best vehicle is an ETF, the iShares Silver Trust (SLV). Buy this fund and you get direct exposure to silver bullion, not miners or god forbid, junior exploration companies.
In fact, when it comes to gold or silver, steer clear of the miners at all costs. I used to recommend them when they paid sizeable dividends, but not any more.
You might as well just light a match to your money… big capital costs, environmental problems, labor strikes, one bad accident… the risks are just too high and something I want no part of.
Take a pass on gold futures and gold coins, too. Too many negatives, as I’ll explain in detail in your free report, 10 Ways to Make a Safe Profit in 2012.
Howl and All -
Thank you for your response. Looking at the global issues and the human nature of the those in this country (U.S), I don't get a good feeling that we have 2-3 more years.
I hope so. I don't see the really big PZG payoff (say $12-18 PPS) coming until San Miguel has proven and probable reserves and that might be late 2013 or even 2014.
Sleeper will give us a $2-3 boost once they sell it.
In my past posts I have warned to keep eyes on the ball as I believe that if PZG does not secure a buyout or anotehr strategy before teh end of this year, operating costs will keep it at this level and most likely worse, for a long time..This is the very reason everyone needs to hedged in Physical but that has to happen now...When a crash comes you will not have the liquidity to move assets into metals...
Yes, and here is why. Gold will sniff out the collapse months in advance of it happening. As gold rises the chances of PZG getting a deal done increases substantially. Buyout of PZG - 2014, Collapse - 2015/2016
His opinion smells of JP Morgan propaganda...Sounds like the ETF hacks need more $$ in the funds...Nothing is safer than physical metals..This is common sense...ETFs are extremely manipulated and will crash with the rest of the market..Physical will shoot to the moon as all fiat currencies (globally) crash before the end of 2012. DO NOT SELL PHYSICAl! At least 20% of your investment $$ should be in it! Bernanke is keeping rates low for one reason....to hold off the inevitable as long as he can before the crash..If rates go up even a 1/10th of a point, we will be more indebted to the likes of China and we already cannot pay them back...BUY PHYSICAL and play with the mkt carefully...you could get caught with your pants down in a split second...
Just for the facts on the national debt. About 1/3 of it is owed between government agencies (fed to states, etc.) Another 1/3 of it is owned domestically as investments, and the final 1/3 is owned by foreign governments. China has roughly $1.5 trillion.
However, China really does not come anywhere near "owning" us.
Our debt load is too high .... no doubt. And Congress needs to collectively get off its butt and cut the deficit by 70-80% with spending cuts and the remaining 20-30% will unfortunately need to come with taxes increases across all but the lowest tax brackets.