"In a total disaster," said Peter Bernstein, "where there is a run on paper currency, you'll get your biggest bang for your buck in gold…if everything hits the fan, gold should be worth several thousands dollars for an ounce.
Lehman files for bankruptcy, AIG got "bail out" by FEDS ( US85Billion), the questions in the market nowadays is who will be the next in line.
Washington Mutual(WaMu) the saving and loan bank next to come, watch out for the news as it's unfold it will cost the FEDs easily another US100billion if it's happen.
Freddie and Fannie has already cost the Federal Government in total US5.7Trillion in debts and liability, our questions is where on earth the Feds or US Treasury get all this money to rescued or bailouts all the financial mess, with no end in sight for next coming few years.
For the last 13 years, the U.S. money supply has been increasing at about 2 times the rate of GDP. This is known, to monetary sticklers, as "inflation." Inflation's is exported throughout the entire world because the USD it's world reserve currency, buying of commodities or business arrangement it's quoted at USD any increased in it's circulation will definitely bring about global inflation. The Feds non longer published M3 figure since March 2006, something sinister is happening because M3 shown the total money in circulation by hiding it the Feds can print as much USD bills without rising an eyebrow from foreign investor. An increased in monetary circulation will certainly cause inflation to jump.
Investors buy gold to protect themselves from inflation and future declining USD . Gold never overstates its earnings, understates its liabilities or declares bankruptcy. When everything else goes to Hell, gold is still there…still doing its job.
With the Federal debts currently close to US10Trillion, Uncle Sam got no money but it can turn to one of the Feds' tricks, one is particularly dangerous: they can print money or"helicopter money", that's right the US government with the collaboration of Feds can print unlimited amount of USD to save or bailout any of it's Wall Street honchos.
Well guys, when the going gets rough, the Feds always turn on the printing press because they can create money out of thin air, scary yet it's truth. How much inflation it will bring to our home for the next few years only God knows.
That's when owning gold really pays off..........................Buy Gold.
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