Sunday, January 3, 2010

"The Debt Bomb" an interesting article from

Here's an interesting article we read online at The basic premise of the article is that because of the extraordinary debt facing the United States the government has decided on a course of monetary inflation - printing money. They have increased the money supply by 119% to $1.93 trillion in the last two years. This is coupled with increased government spending to keep the GDP from falling and hopefully spurring employment. The government debt bomb meanwhile stands at an alarming $115 trillion dollars. The article states that it seems inflation will be heading our way in the very near future. Furthermore, according to the article precious metals like gold and commodities are expected to outperform other asset classes, while they site stocks and real estate as appreciating in value against paper currencies. The Federal Reserve seems committed to a path of monetary inflation to inflate away the mountain of debt, however this policy will lead to a further dilution of the dollar.  As further proof of this policy the article shows that the European banks have also adopted a policy of printing money and also taking this path of monetary inflation.

To read the article, go to

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