Yesterday, my daily research returned me to a January 7, 2011 article titled Debt Crisis Will Hit Home In Second Half of the Year. The article referenced the growing number of states and cities joining the ranks of the bankrupt. This, of course, being just one more bushel of straws on the camel's back.
At the time of this writing, the debt ceiling debate had not yet reached the levels of desperation now faced. We were in the midst of executing QE2 which was believed to be the end-all to printing money.
That writing joined a chorus of predictions on when the credit crisis would finish off the economy and the markets. It said, . . .it is, in effect, around October 2011 . . that this explosive situation will be fully revealed.
As I look back through my reference material, I recall most predictions were confined to claims that we will keep kicking the can down the road until someday. Now, someday may be right around the corner. What amazes me is how there is nearly total consensus that someday will arrive. Yet, so many remain unprepared and vulnerable. Words like default, catastrophic consequences, apocalypse are all falling on deaf ears. My greatest fear is that we will wake up one day to someday. The day we finally learn the real meaning of those threatening words. Will that day come in October 2011?
Another important day approaches, that being August 2, 2011. The day the U.S. runs out of money. Is Tim Geithner once again just crying wolf? Are Republicans right? - Democrats? The choices are clear. Either raise the debt limit or default. Either way gold wins. If we raise the debt ceiling that means we print more money and debase the dollar further. If we default, well - that's just the end of the dollar, your savings and retirement accounts and our standard of living.
Now here's the real scary part. What if someday arrives and there is catastrophic failure an apocalypse? What will you do when government says, I told you so. Now there is nothing we can do to save you. It's too late?
When will gold break out to new highs? . . . Someday!