(adsbygoogle = window.adsbygoogle || []).push({}); I saw someone's thread about the U.S. debt so I remembered this information from an article I read on You must login or register to view this content. a while back. It will be a somewhat long, but I will try to keep it as short as possible and try to hit the most important points. If you want any more information, I would advise going to inflation.us and reading some of their articles.

Let's start off with some basic information. As of July 25th, the U.S. Public debt is over 14 trillion dollars, which basically means the U.S. government owes various countries, and some of their own programs such as Medicaid, S.S. Federal pensions, etc. over 14 trillion dollars. The reason this debt is increasing instead of decreasing, is obviously because we are spending more money then we are making. That leaves us with two solutions; Cut government spending, or print more money. The problem with cutting government spending is that everyone cannot agree on one budget. Democrats want to raise taxes. Republicans want to focus on cutting spending and avoid raising taxes. Printing off more money makes every dollar worth less. Think of it like this. The more of something you have, the less each one is worth. A prime example of this would be the Zimdollar. In Zimbabwe, 100 trillion of their dollars is enough to buy you about 3 eggs. The same would apply to us. If we print off more money, everything costs more because there are more dollars in circulation. It does not necessarily mean the value of it goes up, just the price. Like how $.10 back in the early 1800's was equal to about $100 now. Now let me get to the problem we are facing. Federal Reserve Chairman Ben Bernanke has stated he plans to take actions such as lowering interest rates for banks on their Reserves in the Federal Reserve, and printing money, if the economy weakens and there becomes a threat of deflation. When asked about whether or not he watches precious metals prices and believes gold and silver are money, he said they are simply assets but not good enough to replaces ones money. Now, back in about 2003 Gold was around $600 an ounce and Silver was about $5 an ounce. Now, they have moved up to $1,200 and ounce for Gold and $18 an ounce for Silver and rising. The all time highs for both were back in 1980 when they hit about $6,100 and $130 an ounce in today's dollars.
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As the national debt steadily increases, the U.S. will eventually be forced to print more money and trigger inflation of the U.S. Dollar. When you combine Federal, State, and Local debt, you get a number around 17 trillion USD. The best way to keep your own personal savings valuable is to buy gold and silver then resell it when the economy is better or when it hits a high point. I would advise anyone and everyone to check out inflation.us, where you can get gold/silver seller reviews, stock advice, and information about our economy from a objective, rather then subjective, point of view. I've invested about $2,000 I made working last year during school and this summer into Gold/Silver, and convinced my mom to spend some of her savings on it. They say, you can take a horse to the water but you can't make it drink, Good Luck NGU.

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When I say to buy Gold/Silver I mean coins, bricks, and sheets. Not jewelry.

Wow, the only part I had known before reading this thread would be the US debt. But this was a very interesting read. To bad I am only 14, and can not actually buy any Gold / Silver.

yay , just spent my life saving on gold fankz xoxo

Gold and silver were the currency back then. The us dollar is just a big "I owe you x amount of gold. The more money we print, the further we divide up its worth.When we default, the government will either:
A. Play it off & switch currencies again, or
B. Be torn apart by pissed off people.

All of this is pointless considering they're not stupid enough to just print more money.

They've tried it once..

I call bullshit. You said Democrats call for higher taxes. This is true, but not for people that have a low income (>60K a year). The Republicans call for no taxes to the rich and more to the poor.

Either way, it proves my point to be correct. We can't all agree on one federal spending budget.

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If it comes down to it, they will have to. Japan and China control a large (Can't remember an exact number) percent of our foreign treasuries, Japan alone controls about 1.2 trillion USD. They have a ticking time bomb. At any given moment they can demand that we pay them back, and we won't have a choice but to print more money or increase out national debt by about 7%. Sooner or later we will run out of options and they will start printing money again. Look at the state of our economy right now, and our government. We can't even decide where to cut corners. Bernanke has already stated he plans on lowering interest rates for bank reserves if the economy gets worse which will act like deflation rather then inflation, and they may all say "Print more money, OHH NONONO nevar" right now, but when they're up shit's creek without a paddle, we both know they will do it. How else do you think they plan on getting rid of a 17 trillion dollar deficit? We can't even export anything, our largest export is scrap metal and supplies to China, which they then make into crap we buy for double the money we made off of selling it to them. Partially our fault, partially our governments fault.

---------- Post added at 12:30 PM ---------- Previous post was at 12:29 PM ----------



If it comes down to it, they will have to. Japan and China control a large (Can't remember an exact number) percent of our foreign treasuries, Japan alone controls about 1.2 trillion USD. They have a ticking time bomb. At any given moment they can demand that we pay them back, and we won't have a choice but to print more money or increase out national debt by about 7%. Sooner or later we will run out of options and they will start printing money again. Look at the state of our economy right now, and our government. We can't even decide where to cut corners. Bernanke has already stated he plans on lowering interest rates for bank reserves if the economy gets worse which will act like deflation rather then inflation, and they may all say "Print more money, OHH NONONO nevar" right now, but when they're up shit's creek without a paddle, we both know they will do it. How else do you think they plan on getting rid of a 17 trillion dollar deficit? We can't even export anything, our largest export is scrap metal and supplies to China, which they then make into crap we buy for double the money we made off of selling it to them. Partially our fault, partially our governments fault.

Finally.. A serious thread from Tairy Hesticles.. :y:
Also... The UK should bail out of the Eurozone..

You actually can, I see no reason why they wont sell you Gold / Silver. Just go to a bank that you know sells gold / silver and ask to buy some. I dont think you should buy gold because it is like $650 an ounce. Try buying some silver, about $27 an ounce last time I checked. In 10-20 years it could be worth $300.

Oops, just checked and silver is $40 an ounce USD. About 4 months ago in Canada it was $27 an ounce

I wouldn't put it past them. One thing I've learnt in my short time on this planet, if someone can **** it up they will.