Reinko

When the Dollar Crashes, All That Glitters Will Be Gold

To jimk07:

In a normal world this would be true, in a normal world the Central bankers would shake those speculators a bit down to the ground.

But we are not living in a normal world, this year the total of US debt on the economy will pass the 50 trillion threshold.

Follow the next link to the Federal Reserve Z1 release, the so called 'flow of funds' sheet:

www.federalreserve.gov...

And there is a little problem:

The total debt grows year on year with a speed of 8% (and is accelerating).
The interest on the 50 trillion debt is 2.5 trillion US$ a year (if you take a reasonable interest level of just 5%).

2.5 trillion is something like 18 to 19% of the entire gross domestic product and that is needed to stabilize the debt growth, problem is that this is above the total profits of the US economy.

So you see: the Central bankers are standing with their backs against the wall. As soon as the above easy to understand calculation hits the wires of the main stream media, the situation will explode and therfore European central bankers keep their ugly mouthes 'wisely' shut.

We live in a fake world on borrowed time my dear jimk07...

And gold? It needs to get above 2000 an ounce before we have a new inflation adjusted record.