We can rebuild a bionic America with gold bullion.
January 21, 2011 – Anybody who takes a dispassionate look at the state of our union will realize the urgency of taking a strong investment position in gold bullion. And while short positions continue to rule the market, opportunity abounds for buying bullion at bargain prices.
That a mere 4.5% of global economic wealth is in gold bullion is a stunning testament to investors’ refusal to accept the cold hard fact that fiat money based wealth is in immediate jeopardy. No amount of stimulus and no degree of austerity is likely to avert collapse of the dollar and the period of hyperinflation that will follow. The reason for that is simple – all but 17% of the money that our states take in is contractually committed, and that 17% does not come close to what it would take to get them out of the red.
New Jersey governor Chris Christie laid off 1,300 state workers, eliminated thousands of teachers’ jobs, and drastically reduced state funding for cities, counties, and villages – but even with the budget slashed by 26% New Jersey still faces a $10 billion deficit. The effect on local governments has been quick and severe. Newark reduced its police force by 16% last year and now Camden has been forced to lay off nearly half of its police officers, one third of its firefighters, and 100 other municipal workers.
The municipal bond market is bound to collapse as more and more local governments default, making it impossible for even economically healthy cities and counties to raise capital. It is not a pretty picture, but it is real.
It is extremely doubtful that we can fix the problem under the current system, but we can let it fall apart and then rebuild it from scratch without all of the union mandated bloat and waste. But that will require vast wealth that had been preserved in gold bullion.
