(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.

I'm 16. Warren Buffet started buying stocks at 12 and has said before that he wished he started earlier. Bill Gates started a teenage business in high school repairing computers. Hell I've been looking at stocks since I was 13. I just finally got cash this year and you can bet your ass I'm investing 75% of my high school income. The nice car can wait, my '01 Honda Civic will do me fine for now.

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Good god no. It's nowhere near a high. It's expected to hit over $5k an ounce in a couple of years.

Good to see you aren't spending it on the materialshit that people ask about in GQ. =D .....do pleople really need to put over their life savings or their whole year's income on some gaming headset?

I agree, it's not a high. But to the majority of this forum, I believe that it may go down, and then they get scared and sell sell sell.

And...... V-Tec just kicked in yo.

cuz of finical crisis .

Credit cards are one of the major reasons why we are in this mess. People buying stuff they cannot afford to pay back, meaning that they get into debt, then more debt and so on. IMO, they are the worst forms of transferring money around. If you don't have the money, don't spend it and think you can repay at the end of the month when you might lose your job. That's why I use Debit card. I can only spend what I have. If I go into an overdraft I can't use my card until I pay it back, I think.



Money is supposed to represent the gold reserve a country has. It's not exactly easy to lug around gold bars. If it was "just paper" then it would have no value and you could print as much money as you wanted. The value of the money is the gold it is representing. I'm not sure how the value of gold is worked out, but someone must has decided how to turn gold into paper/coins and how much gold each coin is. So say a 1p could be like 0.01 gram of gold for example. Money makes it easier than chipping off so much gold to hand over. The reason there isn't enough gold for todays economy is because people have spent what the cannot afford. Say you get £2000 on a credit card, you might go out and buy a new car with that card. Meaning, you now have to pay back say £1500 for the car say within a month. Then your bills come in for your house and they are £600 for example. Your monthly wage maybe £1000. You might have had another £1000 from the month before. Therefore, you are in debt by £100. Now if millions of people do this, they have spent money that the country doesn't have, and that's why we are in this situation. Because the country is in debt, Gold value goes up, meaning it's harder to get back on track until the value of gold falls and we are once again level with the amount of money to gold. That may not be 100% true, but I think that's the general way of it happening.

You were right about the value of money being aligned with the value of gold. Look in I think Page 3 or 4 in this thread and watch the Money vs. Gold video :y:

Gold not the answer.....
Why is the price going up welll.........
Demand from asia along with some savers using it as a safe haven. However not all of them has put their money into gold. After past lessons it a mistake too. They are most likely going to the strong safe zones of the Nordic nations or switzerland.

Btw you start deflation of the US dollar
When you print more money along with a devalue of your bonds.

Zimbabwe had the same problem that greece did to a point.....but showed off one of the dangers which can hit a nation. Hyper inflation and deflation.


US should not default and should keep as the main currency around the world. Risk is that it debt is downgraded and making the US cutting it debt more painful.

US should cut back and tax more. Along with allowing new businesses to be setup and grow.

And the US dollar has long way to go before it worthless.

Hope this is solved or we getting another world crisis ^_ ^
It odd the US caused one crisis then the EU now the US again lol

Look up Nixon Shock which took place under President Nixon. In short, he closed the window between the gold and the dollar in 1971. This isn't anything conspiracy related btw, this actually happened.


I just explained gold isn't linked to the dollar.


That doesn't make sense, btw. In that sense, in the end stability should be achieved.


Nixon Shock.

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Are you familiar with Nixon Shock in 1971?

Somewhat. Isn't it basically where he f*cked up the dollar and how it was aligned to be equal in value with gold, like the Founding Fathers wanted it to be?

The opposite. He closed the window connecting gold and the dollar in 1971.