The US has over 14.3 billion in national debt. It has only $484 billion on gold. That mean if it wanted to sell all of its gold and pay off the debt, they would have only 4% of the amount. This is a recipe for a disaster. As we do not have enough real money to pay off our debt. The solution, that I am afraid will happen is that they will decide to pay off our debt bys using more electronic or fiat currency. This will caus even greater inflation. Then, when people realize the US dollar is being greatly devalued, they will flock to real money - gold and silver.
It is these unhiging fears is one of the reasons why gold jumped up today to $1878 an ounce and silver is at over $43/ounce. It will only be a very short time before gold goes to over $2,000 and silver reaches $50.
As long as Obama is in charge, all signs point to a deeper financial calamity and a flock towards gold and silver.
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