It was a slow-moving summer season for the U.S. economy in a great many ways, most of them unfavorable. Yet the economic activity will get fast and insane in Washington, D.C., and Americans need to understand what the bottom line will be.
Looking ahead, it's clear that a new wave of chaos is about to overtake the federal government and the global economic climate. As per our usual advice, we're recommending that our clients revamp their investment portfolios-- and capitalize on the recent weakening of rates in gold and silver.
The U.S. economy can't get into second gear because of the overhang of unprecedented federal budget deficits. Between 2009 and 2012, the government recorded the largest federal budget deficits relative to the size of the economy since 1946, according to a recent report by the Congressional Budget Office. Federal debt held by the public is now 73 percent of the economy's GDP - a percentage higher than at any point in U.S. history except for a brief period around World War II.
It's also twice the percentage since 2007, before the worldwide economic crisis was official--and before the new President, Barack Obama, decided that the solution was to load the quandary onto the backs of the American citizen through increased taxation. Then Obama discovered all sorts of socialistic tools to compound the problem, introducing a variety of new laws, such as Obamacare to bedevil business owners.
Because of this, CEOs and small-business owners still fear for the future and so remain conservative in committing their capital. Corporate earnings falter. A cascading effect is that few jobs are created and many more are cut. The next cascading effect is that consumers rein in their spending because of their own concerns about their financial future.
It's no surprise that Fed Chairman Ben Bernanke just recently decided against easing back on "quantitative easing"-- i.e., U.S. government investments of our very own bonds-a measure that has basically been keeping the United State's economy from collapsing.
All current efforts of economic reform are mere band aids. More monetary handwringing lies straight ahead. In fact the only sensible thing that you as an investor can do is invest in God's money--gold and silver have stood the test of time and they can offer you the only feasible protection from the economic disaster being enforced by Washington.
Looking ahead, it's clear that a new wave of chaos is about to overtake the federal government and the global economic climate. As per our usual advice, we're recommending that our clients revamp their investment portfolios-- and capitalize on the recent weakening of rates in gold and silver.
The U.S. economy can't get into second gear because of the overhang of unprecedented federal budget deficits. Between 2009 and 2012, the government recorded the largest federal budget deficits relative to the size of the economy since 1946, according to a recent report by the Congressional Budget Office. Federal debt held by the public is now 73 percent of the economy's GDP - a percentage higher than at any point in U.S. history except for a brief period around World War II.
It's also twice the percentage since 2007, before the worldwide economic crisis was official--and before the new President, Barack Obama, decided that the solution was to load the quandary onto the backs of the American citizen through increased taxation. Then Obama discovered all sorts of socialistic tools to compound the problem, introducing a variety of new laws, such as Obamacare to bedevil business owners.
Because of this, CEOs and small-business owners still fear for the future and so remain conservative in committing their capital. Corporate earnings falter. A cascading effect is that few jobs are created and many more are cut. The next cascading effect is that consumers rein in their spending because of their own concerns about their financial future.
It's no surprise that Fed Chairman Ben Bernanke just recently decided against easing back on "quantitative easing"-- i.e., U.S. government investments of our very own bonds-a measure that has basically been keeping the United State's economy from collapsing.
All current efforts of economic reform are mere band aids. More monetary handwringing lies straight ahead. In fact the only sensible thing that you as an investor can do is invest in God's money--gold and silver have stood the test of time and they can offer you the only feasible protection from the economic disaster being enforced by Washington.
About the Author:
Want to find out more about precious metal investing, then visit Anne Trimble's site on how to buy gold and silver.
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