A lot of people believe that we’re heading into a financial disaster. That’s not far from the truth since all the signs are here. However, before we can talk about the future, we need to go a few years back to see how these events will spiral out.
In 2007, there was a major crisis caused by the real estate crash, and a lot of individuals believe that it has been resolved. That’s not the case. First of all, the crisis didn’t just drop down from the heavens like a swarm of locusts. Click here to read more about the subject.
Secondly, it wasn’t resolved by a team of super-smart policymakers in Washington. Instead, it’s part of the ongoing problem that has been plaguing our society ever since 1971. That’s the time when the United States severed the connection between gold, which is the hardest monetary metal known to humankind, and the dollar, which is eventually going to be a worthless piece of paper.
Is the United States Economy stressed?
After the fall of Lehman Brothers, there was a multitrillion bailout by the financial system. Now, it’s all part of the lore that’s slowly being forgotten, but the fundamental problems were not solved at all.
When those events were unfolding, the best investor in the world, Warren Buffet, stated that there were enormous dosages of monetary medicine that were being administered. Instead of being the cure and eliminating the disease, they just spawned invisible side effects that are starting to haunt us now.
When the pandemic happened, instead of letting the markets take their course, another instance of the medicine was administered, which hastened the problem even more. Checks were issued out for money that still didn’t exist, and now the entire dollar supply has been watered down.
The current political events are not helping at all, and the conflict with Russia will only make matters worse. Even Paul Volcker, who was the chairman of the Federal Reserve and part of the Obama administration, advised that there were risks, disequilibria, and massive imbalances. Visit this link for more info https://fox40.com/news/local-news/company-considering-reopening-gold-rush-era-mine-in-grass-valley/.
He’s one of the people who knew a lot about the system back then, and he said that we were skating on thin ice. Instead of his statements sending an echo to the consumerist public, the international money supply kept on inflating, and the same problems kept on occurring.
Even though many people believe that this is all just a dream and we will wake up from it tomorrow, the truth is much more severe. There will eventually be a calamitous settlement of these accounts. The only solution is gold, and here are some of the facts that might inspire you to get some.
What trends are affecting your portfolio?
First of all, let’s see how the budget deficits are holding up. All the way back in 1970, they were only 2.8 billion. In 2011, the budget deficits were 1.3 trillion. That’s a massive jump in 40 years. Now, the number is much higher.
Back in the 70s, the federal debt was half a trillion. In 2011, it was 15 trillion. Now, it’s close to 30 trillion. Of course, this number doesn’t contain Medicare and Social Security, which can multiply that number. Additionally, imports and exports used to be balanced fifty years ago compared to the present.
We’re seeing a deficit of close to a trillion dollars each year because most of the manufacturing has been outsourced to other countries. This had made the United States turn to the greatest debtor nation when it used to be the greatest creditor nation.
Of course, this also falls on the shoulders of China and Europe, but still, the political situation is not under control. Even though taxes are increasing, government spending still exceeds the amount that has been collected. Still, think that your portfolio is doing good?
What are your options?
There’s only a single option and not multiple. That option is gold. Storing all of your wealth in gold can be the best thing that you ever do. If you have an IRA, it would be wise to change it and base it on one that relies on precious metals.
Don’t pick one that’s based on paper ETFs and certificates. Go for the real deal and get physical assets. If you buy gold as a collectible now, you will need to pay a 28 percent tax on it as a collectible since it falls into the same category as arts, paintings, sculptures, rugs, diamonds, and other assets in the same niche.
Going for an IRA eliminates your share of paying an IRA gold tax, which will leave you with a lot of profits. That’s the only solution at the moment since everything else is getting way more expensive. That’s the work of inflation. Even though the government promised they would keep it under 2 percent per year, they failed.
If you compare the purchasing power of the dollar, it has dropped dramatically. In the past 50 years, it has lost close to 90 percent of its value. Things that used to cost a dollar back in 1971 now cost 6 dollars. If you want to live the same life as someone earning 50 000 per year back then, you would need to have a job that pays 300k dollars at this time. This disturbing trend can only be stopped by the commercial use of gold and keeping it as a store of value.