So much for the half-baked theory that a crashing dollar would drive gold sky-high (Glenn Beck, how much)
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In other words, the video is claiming that we can't sell US debt because there's no more "people" that want it - which is pure nonsense.
Ken
There might still be a market for US securities, but the system crashes without an ever-increasing base. That, my friend, is NOT a good model. (you know damn well what this type of model is called, when it's not the federal government, too)
I guess long-term investing isn't your game? That's ok, not everyone has the patience and vision for it.
I've had investments for 25 years or so - I just stay away from gold and commodities in general. It's wayyyyyy to volitile for me - and long term it's performed VERY POORLY.
There might still be a market for US securities, but the system crashes without an ever-increasing base. That, my friend, is NOT a good model. (you know damn well what this type of model is called, when it's not the federal government, too)
The deficit is on the way down. If it continues to shrink the way it has in the last few years, it will soon be gone and the US will be running a surplus.
OK, let me RE-PHRASE it to EXACTLY what the video said: "...It's such a huge amount of money, that Uncle Sam is starting to out of people to borrow from..." - 1 minute, 10 seconds into the video.
In other words, the video is claiming that we can't sell US debt because there's no more "people" that want it - which is pure nonsense.
Ken
Quote:
"...It's such a huge amount of money, that Uncle Sam is starting to out of people to borrow from..."
If you're going to quote the narrator then at least get the quote straight. You didn't do that TWICE.
And, by the way, what the narrator ACTUALLY said was true. When you start running out of people to dump IOUs on then you must hold them yourself:
The deficit is on the way down. If it continues to shrink the way it has in the last few years, it will soon be gone and the US will be running a surplus.
Ken
Sorry but a $10 billion surplus with $20 TRILLION in debt and $1 TRILLION in annual interest payments is not good for America no matter what His Royal Highness Krugman says.
I have been at this for 25 years and do not invest for the short term.
I invest anywhere from 5-10% of net wealth in gold. That is held in the form of American Eagles and Maple Leafs. The rest in in other investments ranging from bonds. stocks, real-estate, and other business ventures. Currently (with the exception of 401Ks), I am out of the stock and bond market. My kids are "all in".
At this point, I do not need any "home runs"and just take profits when I have enough. Preservation of capital is the key to maintaining wealth. Staying 100% invested in the stock market at all times (this is not the 1940s-2000) is not a wise move.
...They seem to foolishly believe that when it all collapses their gold will be worth what they paid for it. LOL.
...or that they'll even be able to get their hands on it.
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