Americans woke up to staggering figures screaming across the pages of the Drudge Report last week. The numbers on government spending and debt had been published and the results were in.
America isn’t just broke … she is so far into debt that it would take each American citizen (the latest count showing 308,745,538 people) donating nearly $45,000 apiece just to cover the amount we’re in the hole.
And that doesn’t include the interest on that debt or the obligations of Social Security, welfare, veteran’s benefits, etc., that we’re also liable for. Basically, if we taxed every American at 100% of their income, we could not pay off our debt obligations.
What is going on and what can those of us prepping for the future do?
How Government Manipulation has Devalued the Money Supply
Because our currency is the reserve currency for the world and the standard upon which other currencies and prices are based, we are in a unique position. Unlike any other nation, we can legally print more money.
But of course there is a cost. With each new dollar the Fed prints and with every new dollar of deficit spending, the value of our currency goes down. The Fed can do this because the dollar is no longer backed by silver or gold. At the time that Nixon temporarily cut the “tie” between gold and the dollar in 1971, he promised the dollar would not be devalued.
Well, at the time, $35 would buy an ounce of gold. Today that same ounce will cost you around $1400. To put the alarming state of our financial system into layman’s terms, the value of the American dollar has declined by a whopping 97.5%.
And with runaway record deficits, two wars overseas, the passage of the largest entitlement program in the history of the United States (Obamacare), and propping up every major bank here in this country and abroad, it’s surprising that gold isn’t selling for $5,000 an ounce!
When the United States first formed the Treasury, it was mandated that all currency be in silver, gold or copper. The Coinage Act of 1792 even called for the death penalty for any persons who knowingly debased or otherwise defrauded the currency of the citizens of the United States. Back when gold and silver were both used for money, gold was about 16 times more expensive than silver. Now that ratio sits at roughly 50:1.
Between the inflationary years of 1973 and 1980, the price of gold rose by 710 percent, while silver rose by 1481 percent. History has shown that as inflation increases, more people turn toward silver as a store of wealth since it is as safe as gold but cheaper.
Where Do You Go For Advice?
If you wanted to buy a car but had no clue what components were more desirable or what mechanical boondoggles had been experienced by the auto manufacturers, you’d consult a mechanic for advice. If you were going to buy a house but had no idea what to look for structurally to insure a sound investment, you’d hire a home inspector to evaluate the house before investing your money. Likewise, when it comes to financial investments, economic indicators, and future probabilities, you’d want an investment research firm that had such outstanding successes as predicting the bankruptcies of General Motors and General Growth Properties, the dire straits of financial institutions Fannie Mae and Freddie Mac, and dozens of other firms that have since collapsed.
That company is Stansberry and Associates Investment Research firm, based in Baltimore, Maryland, and the largest and most recognized investment research firm in the world. Even now Stansberry is sounding the alarm in a controversial new video about the end of America as we know it.
Is there going to be a cataclysmic economic event in 2011 that could possibly result in the end of our way of life, an event that will bring forth martial law, food lines, bank closings and thousands of people fighting for their very survival?
According to Porter Stansberry, yes, and it’s coming soon. Well, what investment strategies should you be looking at to offset this economic spiraling downturn? There are several, and Porter Stansberry provides this information and more through their monthly investment advisory reports, information that is gleaned from SEC filings, current events, interviews, corporate press releases, and what they’ve learned as financial journalists. They do the legwork of gathering this information so you don’t have to.
However, don’t take our word for it. Listen for yourself. Watch this sobering video as Porter takes you step-by-step through the facts of how our country got to where it is today and how you can hedge your financial bets to come out on the other side intact.
There’s no time to waste. Our financial Armageddon is on countdown, and we’re looking at a grim future. Watch this video yourself, and then share it with your friends. There’s not a moment to lose.