A Graph is worth 100 words


The above Bloomberg.com graph shows a high correlation of gold to the U.S. debt.  I expect gold to overtake the U.S. debt once the public figures out that we are approaching a tipping point where we cannot pay back the debt without hyper-inflating the U.S. Dollar in order to pay back with cheaper dollars.  Our creditors will not like the devaluation.  We cannot tax our way out.  The free ride is just about over.  With the U.S. being 25% of the world’s economy, many countries have a vested interest in keeping the game afloat.  What a mess!  LORD help us.

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