Plus 5 Big Reasons To Own Gold NowIs President Obama trying to kick the stimulus habit?  Many believe higher taxes are the antithesis of stimulus.  One removes disposable income from the economy and one adds.  So which is it going to be?  Inflation or deflation?  Either way we see gold in a win win situation. 

Curing the Debt Crisis With More Debt

 

They always say, be careful what you wish for.  For months, inflation fears heightened as bailouts and stimulus became the order of the day.  Borrow and spend,  print to pay, that was the plan.  A plan that was to . . .

 

·         rescue a failing housing industry;

·         bring unemployment down to 8%; and

·         save a stock market whose bubble burst for the second time in less than a decade. 

 

It worked for awhile, as free money was injected into nearly every arm of the economy. 

 

Car sales peaked . . . Home sales spiked . . . Appliance sales got a boost . . . Even Window sales opened wider as cash flowed freely from government printing presses.

 

With the belief that more debt could cure the debt crisis, government asked for inflation and got it.  Demand for gold grew so fast,  reports of shortages began to surface as the gold price continued its sturdy rise to new highs.

BIG REASON #1 - Inflation Steals From Your Savings and Retirement Accounts     

 

If anything is inflationary it is the printing of FREE Money.  Like a thief in the night, inflation robs your savings and retirement accounts.  Learn how gold may provide you the best strategy to protect purchasing power, provide profit and become a powerful retirement building tool! 

 

Click here for your FREE Gold Guide and special reports  

At The Crossroads of Inflation and Deflation

 

Just as an addict endures withdrawal so is our economy withdrawing from the high of free money.  Personal bankruptcies are on the rise, housing starts on the decline and unemployment hovers near the 10% level -- maybe higher as the still jobless fall from unemployment rolls.

 

Oh yeah!  Then there's the stock markets.  They run up . . . they fall down . . . volatility may never have been higher than it is today. Uncertainty is winning the emotional battle.

 

Where once we feared inflation we now face the threat of deflation.

 

In a recent Wall Street Journal Report, Fed Minutes from the June FOMC meeting make known these early warning signs of deflation and cite the fading effects of stimulus.  A mid-year check on the performance of gold vs. the markets shows gold up a strong 9% unfazed at the prospect of either inflation or deflation.  The markets?  Dow - down!   NASDAQ - down!   S&P 500 - down!    

 

A choice must soon be made.  Choose your poison.  Inflation or deflation?    

BIG REASON #2 - Fed Fear of Deflation Could Trigger Pro-Gold Strategy     

 

The WSJ article says, Fed May Consider Further Stimulus if outlook Worsens. We always say, inflation slowly steals your savings and retirement but deflation can steal it overnight.  Evidence shows  Fed is standing ready to fight deflation with more printed money.  Learn why gold may be best defense against both inflation and deflation.      

 

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The Debt Threat

 

Now, this administration is at a crossroads.  To continue down the free money path, in attempt to re-inflate the markets and our economy, could send America to its debt bed.  We fast approach a time when all the taxes collected still won't be enough to pay even the interest on our debt.

 

And the other path?  Deflation!  Spending cuts, higher taxes, and a stimulus-free economy are the bullets this administration is ready to fire in the fight against inflation and exploding debt.

    

First signs of this effort appeared when Congress denied the extension of unemployment benefits to millions of unemployed.  That policy may shift but the consensus is in - deflation is today's dominant trend.

 

In response, market volatility heightened and gold prices firmed as worldwide gold demand continued to rise.  The world awaits direction.  Will we deflate or will Fed fears override these efforts and return us to a print to pay policy of re-inflating our economy?   

BIG REASON #3 - Deflation Could Trigger Debt Bomb Explosion and Higher Gold  

 

Debt combined with deflation are more volatile than nitro-glycerin.  Why?  Because things you buy with borrowed money today will be worth less tomorrow.  With debt projected at $16.3 trillion by 2012,  is it any wonder the Fed is prepared to fight deflation with more stimulus?  Learn why cash is king during deflation and gold is cash.        

 

Click here for your FREE Gold Guide and special reports

Inflation and a Weak Dollar - Greatest Hope for Recovery

As ironic as it may seem, our once greatest fear of inflation may ultimately prove to be our only means to economic recovery. 

If it is believed deflation can trigger a debt bomb and bring a quick end to any hopes of preserving our savings and retirement accounts, we, indeed the world, may have no choice but to try to inflate our way out of this mess. 

You see, during inflationary periods, the dollar weakens.  A condition the markets love as both foreign and domestic profits begin to rise.  And because inflation leads to a weaker dollar, debts actually shrink as money you borrow today gets paid back with cheaper dollars tomorrow.     

Here's the secret:  Don't borrow to own or buy anything but tangible assets.  Real estate, precious metals and a host of other commodities, are appreciating assets, the debt for which can be repaid with a dollar worth less than when it was borrowed.

BIG REASON #4 - A Weaker Dollar Could See Gold Double or Triple Again  

 

Over the last decade, we've seen housing inflation rise to bubble proportions . . . stocks too.  Then crisis, as both bubbles burst.  And gold?  In less than a decade gold rose 400%.  Learn why experts say the real gold bull market is yet to begin and gold could double even triple from today's levels.         

 

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More Stimulus Sets Stage for Higher Interest Rates

 

If a Fed policy to inflate wins out over this administration's apparent efforts to deflate, this policy is not a risk free solution to our economic woes.  As more stimulus gets pumped into the economy,  inflation will surely rise.

 

With interest rates currently near zero, there is ultimately only direction rates can move . . . higher!  Especially, when stimulus dollars, once again begin to flow into a slowing economy.

 

Hyperinflation will become a threat and efforts to control the rate at which inflation rises will come in the form of rising interest rates.  Some say this will be a sign the real gold bull market has begun.

 

BIG REASON #5 - Rising Rates Signal $2400/oz. Gold  

 

To match its 1980 inflation adjusted high,  gold prices would have to double.  It was then that interest rates peaked after rising from inflation-inducing lows.  Will a stimulus-laden recovery drive inflation, weaken our dollar and cause history to repeat?  Learn why experts say Gold diversification may be your best strategy to protect and grow your wealth.           

 

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This could be your very best opportunity to take advantage of a gold bull market that may only be in its infant stages!!

According to a recent report from the Cheshire Republican Women,  outgoing Republican Senator Judd Gregg believes, within five to seven years, the US is heading for a debt-driven financial meltdown!

Lear Capital has been sounding this same warning for some time . . .

Globally, more and more people are turning to gold to protect and grow their savings and retirement accounts.  Central banks like China, Russia, Brazil and India are all buying gold.  And, as evidenced by reports over the last two years from the U.S. Mint, gold supplies are limited.

 

Even today, we find from the www.usmint.gov web site . . .  

Due to the continued, sustained demand for American Eagle Gold Bullion Coins, 2009-dated American Eagle Gold Uncirculated Coins were not produced.

The United States Mint will resume the American Eagle Gold Proof and Uncirculated Coin Programs once sufficient inventories of gold bullion blanks can be acquired to meet market demand for all three American Eagle Gold Coin products.

Don't be caught short . . . timing is critical.

 

The U.S. is heading for a debt explosion and nothing seems able to stop it.  Over the last ten years, gold has been the beneficiary of volatile markets, bursting bubbles and a weakened dollar brought on by massive stimulus. 

 

Learn why more of the same is expected in the months and years ahead.

 

Click here to receive your FREE Survive-the-Meltdown Edition of Lear's Gold Advantage Investor Guide.  Do it now and while supplies are available to receive our latest special reports on Inflation, Deflation and How to Own Gold In Your IRA Accounts.