(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.

---------- Post added at 11:35 AM ---------- Previous post was at 11:34 AM ----------

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

Very good read.

Still the same... Those are just an efficient way to move the same currency around, and by that just causing more debt by companies that take advantage of that.

Actually, the dollar isn't equal to gold anymore after Nixon took office.

And gold can't be used directly as a currency.

Then what does the dollar represent?

And yes it can... That's what it was used for in the old days before government took over and decided to take all the gold and just use paper that represents how much gold you have. Technically, money is gold.

I think you should watch this video -

Nothing. It is odd to think this way, but its paper. There is not enough gold to equal the amount of money on the market today.


How? Gold is inaccurate for currency, and time consuming. There isn't enough gold in today's economy to refund everyone their dollars.

So many people will buy silver and gold that the US dollar will go up in value and we will all be screwed :/

Exactly... that's how we're 14.5 TRILLION dollars in debt.. we don't have the gold to support our money. Inflation. It's all tied together.

Gold is at a high right now, why the hell would you buy now? What will you do with the gold when you want money from it...trade it in for cash?

Nonetheless, gold is a safe investment. I started buying about an ounce or two a year back in my undergrad years. I plan on picking up the pace now that I have a good salary.

I may sound contradicting, but that's because 14 year olds shouldn't worry about the stock market.