Gold Stock Bull, following on the heels of the recent S&P downgrade, took things a step further in downgrading U.S. debt to junk status early Monday morning. A spokesman for the gold investment site was quoted as saying:
“The true debt-to-GDP ratio of the United States is closer to 500%, when including unfunded liabilities. This makes Greece, Portugal and Ireland look like models of fiscal responsibility. The debt ceiling debate was nothing but political theater that resulted in an agreement to cut $917 Billion over 10 years, a number that would not be enough to address the current budget deficit for a single year. Who do they think they are kidding? Judging by the market reaction, not too many this time around.”
Indeed, the debt agreement was a joke as it failed to include any revenue increases, even obvious moves to close tax loopholes that allow corporations to pay ZERO in taxes. There were also no immediate cuts to the bloated defense budget of the United States, estimated to eclipse the military spending of all other nations combined. Lastly, who came up with the idea of allowing more debt as a solution to a crisis of debt? Are junkies prescribed higher levels of the addicted drug as a cure?
Another sign the U.S. politicians are not serious about addressing the mounting debt problem is the fact that they decided to omit any type of balanced-budget ammendment. Failing to agree to the basic concept of not spending more than you take in is a clear sign that our leaders are not taking the threat seriously and/or not willing to level with the American people for fear of losing their power. These guys are moral cowards that are betraying this country, the people and the oath they took when entering office.
How about a cut in the salaries for Congressman? An immediate end to the costly occupation of foreign countries? Dissolution of the FED? Ending the Billions in foreign subsidies? Reducing the size of government? Simplifying the tax code and cutting the IRS workforce in half? Or how about returning to sound money that is backed by finite tangible assets such as gold, oil or a basket of commodities?
Well, silence other than a select few politicians such as Ron Paul that are not bought off by corporate interests. He has introduced a bill that would cancel the nation’s $1.6 trillion dollar debt to the Federal Reserve and simultaneously lower the debt limit by the same amount.
Rep. Paul argued, “Where did they get the money to buy our debt? They created it our of thin air. Taxpayers keep working hard to pay interest to the Federal Reserve as well as finance these bonds. I would say that is not a real debt. It’s a fictitious debt. It’s a dishonest debt, and we’re not obligated.”
Currently, the bill has no co-sponsors.
The willingness of our politicians to kick the can down the road, the mainstream media to keep everyone in the dark and the American people to keep electing these traitors is sickening. The truth is that we are beyond the point of no return and the U.S. dollar and other fiat currencies are ripe for a huge drop to worthlessness or thereabouts. China, Japan and others are cutting their U.S. debt holdings, reducing their purchases and may soon stop buying altogether.
Who can blame them? Would you trust the credit worthiness of a nation that spends $1.5 Trillion more every year than it brings in? The Treasury may be up in arms about S&P’s willingness to downgrade U.S. debt, but I say that they didn’t go far enough. Fiat money is destined to revert to its true intrinsic value… zero. If anything, it is generous that S&P waited this long and only reduced U.S. debt by one level to AA+.
The days of the dollar as world reserve currency are numbered. If you have yet to reduce your dollar holdings and protect your wealth with gold and silver, what are you waiting for? You might want to get on it while you still have a chance. Click here for suggestions on how and where to buy physical gold and click here for research into undervalued mining stocks.