Crash Course: Chapter 13 - A National Failure to Save (2 of 2) by Chris Martenson

Chapter 13 (A National Failure To Save - Part 2 of 2): "The next twenty years are going to be completely unlike the last twenty years." -- Dr. Martenson. Chapter 13 begins his explanation for this deeply held belief. On every level of our society, there has been a failure to save. Individuals, cities, counties, states, and corporations have all failed to save, but, more importantly, so has our federal government. Our government has pursued a reckless policy of debt accumulation, while neglecting saving and investing, leading to Dr. Martensons claim that the United States is insolvent. Insolvency, which occurs when ones liabilities exceed assets, is first step on the road to bankruptcy.

http://www.chrismartenson.com

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[fedroger]

There isn't enough gold in the world to back our debt. anyways...

[GULRUDJ]

There is none. We gave it up during the Nixon administration. The gold window was closed becuase we were about to run out.

[TWSceptic]

All these things make perfect sense to almost everyone. And yet when the government does these foolish things, almost no one notices. I find this to be very strange.

[stocktradinginvestor]

The US government owns more gold reserve than any other country so they are hedged against their continuation of their policy. If people started only accepting gold instead of dollars, the US would still have quite a large share of the world.

The US prints BONDS not dollars the FED prints dollars. But there is a huge demand as long as it remains the reserve currency. It most likely will not forever, but enjoy it while you can because 40% of the inflation is exported.

[FortNikitaBullion]

After watching this video I got a suggestion to watch Elton John's Rocket Man. Apparently so many people need something to de-stress after absorbing all this bad news.

[cpwitham]

@cpwitham Gold is currently worth about $1600/oz. If it were to back all of our money it would soar to about $60,000/oz. Even 10% backing would make Gold about $6000/oz. Will this happen? I don't know.

[cpwitham]

@fedroger Not true. If/when gold is reinstituted as the backing to our currency, it will adjust to the price it needs to. Plan accordingly.

[pismo10]

The US will never go bankrupt, they will simply pay off debts with lesser value/worthless dollars. The treasury is never going to bounce one of it's own checks. The fed will print the money for them. Inflation.

[paulrprichard]

@fedroger yep you needed $250 to own 1 oz of gold back in 1997 or $1,400 in January 2010. If gold was re-priced upwards just like FDR did in 1933 would there be enough gold ? Back in 1933 you would need only $35 to own 1 oz of gold. Oh and FDR confiscated all gold owned by citizen at the time too then re-priced it upwards. Can history repeat itself ?

[Thewizzardof9]

Investing is not savings, you have traded one piece of paper for another, you took one year of GNP and compared to 10 years of obligation.

[Miklus023]

The poor monkey is scared shitless!