Out of the frying pan - Into the FIRE

Members Login		close
	User Name
	Password


Forgot Your Password? For New Members Signup here

National Debt Clock

Precious Metals Blog

Thursday, December 17, 2009

Out of the frying pan - Into the FIRE

Today's price movement is almost comical. The reason the dollar is surging is its perceived safety due to the Sovereign debt mess, people are fleeing the EU due to rumors of a debt disaster that are swirling around the capitals of Europe as the sovereign debt of Greece is downgraded.

Dig further into the headlines and you will see these are eerily similar problems to our own. Now investors are rushing to sell Greek bonds. I see the biggest bubble of all in US Bonds. All currencies are being printed in massive quantities in an effort to print our way out of the world wide derivatives disaster which by the way are predominately priced in US Dollars while the dollar appears poised to lose its world reserve currency status very soon.

I personally don't trust paper in any form, I see the potential for overnight currency devaluations worldwide, bonds are nothing but debt and as we now see by the Greece debacle, bonds can be a giant trap, our dollars are nothing but paper backed by the full faith and credit of our bankrupt government, Companies require capital to grow and are loaded with debt, PE ratios on the S&P 500 are above great depression levels by almost 3 fold and banks are fearful to lend.

Yesterday the House Votes to Raise U.S. Debt Limit to Almost $12.4 Trillion, California is having difficulty selling its municipal bonds as can be read about here California's Bonds Fail on Wall Street Advice Bill Lockyer Couldn't Refuse.

Furthermore Moodys in the past week has issued some very concerning warnings that should surely squash any recovery talk coming from our "leaders" Moody's US credit warning spooks world markets
and furthermore Moodys paints a grim picture of social unrest for 2010

So the question is where is the safety? Where will you keep your money. 2010 has all the promise of being one big mess. Unlike stocks, bonds and currencies gold has no debts or liabilities.

James M. Carrillo

0 Comments Post (Login) Comments

DISCLAIMER: All of the provided information is believed to be accurate, however errors are possible. The opinions in the Commentary section do not necessarily reflect the opinions of GoldIRAS.com. Past performance of any investment is no guarantee of future performance. All investments have risk.

TOLL FREE - 877-703-2193