Global Debts Are Compounding

To understand the aberration in any system, one simply needs to look at the present economic actions being structured throughout world governments. The fact that there are forces building toward a massive global economic meltdown has left little trust in governments. The positive aspect to this present economic crisis is, that its time for a good housecleaning if you will. Leaving the doors wide open to reexamine an out of control mechanics in the presently aberrated policies. Such no less evident in the latest crisis yesterday as 50% of Spain’s youth out of jobs were protesting the Spanish government. While millions of Italian are smoldering on a brink of default Greece is going to need a third bailout along with a slew of 19 more European countries heading for default. Each risk sparks a deeper economic crisis for a new global transformation that proves to be imminent. Collectively, world wide debt is much too high and it compounds daily. Bailouts of any kind further dig the debt hole while addressing the political and economical situation as well in the US. Those still in the la-la-Ameriland expecting economic growth by listening to politicians’ own agenda’s, are unable to fathom, the US is in an economical decline.

It is clear, that to shrink the deficit in the US is a no brainer and must be done. It is on everyone’s mind without putting American economy at risk. However, American economy has been long at risk. The smoke in the mirror is gone; the US is caught in a catch 22. The chess game in Washington stalling is a slow economic checkmate. Whether its politicking or nobody knows what to do, or the debt ceiling is raised or not, taxes will come into play as the battle for the future of this country continues. With the financial calamity of I want what I want with politicians, it’s like a water balloon, you squash it on one side and it balloons on the other until it pops.

The fact remains, the globe is caught up in overspending and the clock is ticking toward hyperinflation —which is impossible to dispute. The guardians of the land do not know how to cross over to protect the land and its inhabitance, thereby giving gold to take the helm. As a true store of value, gold again becomes a demand for safe-haven and oasis in a financial world. With the U.S. and Europe having repeatedly shown that they are both unwilling and unable to take the difficult steps to really deal with serious and catastrophic debt issues, it’s easy to see why today’s development is going to be highly bullish for long-term gold and silver prices. Asian’s muscle not to be underestimated. Neither is Mark Faber’s market advice, who has since 2000 been quite accurate in predicting gold and oil prices as he reminds investors, “I just calculated if we take an average gold price of say around $350 in the 1980’s and then we compare that to the average monetary base in the 1980’s, and to the average US government debt in the 1980’s…but if I compare this to the price of gold to these government debts and monetary base, then gold hasn’t gone up at all. It’s gone actually against these monetary aggregates and against debt it has actually gone down. So I could make the case that probably gold is today very inexpensive….”

Every time gold looks too expensive it reach a new record. Investors are beginning to see the catastrophic economic situation is only the beginning. States in the US are in just as much trouble and will be going to the Fed for bailouts. “While waiting for the shoe to drop on taxes and other credit bailouts along further crisis yet to be unveiled, it’s important to see how China in particular are protecting their assets with gold, and will be to long-term commodity prices,” says Regal Asset Team of Analyst.

Source: http://goldcoinblogger.com/global-debts-are-compounding/#more-3308