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Think gold is high? Wait till dollar bonds are dumped, Davies says
The West is close to the point where its paper currency system is insolvent, and as a result gold is heading to $5,000 an ounce, according to the manager of a gold fund.
“A paper currency system ultimately ends in insolvency,” said Ben Davies, the chief executive of Hinde Capital in an interview with CNBC.com on Tuesday. “We have arrived at this point in the West. So why own worthless paper?”
His belief that gold will hit $5,000 an ounce is not shared by many major players in the market. On Sunday, Goldman Sachs raised its 12-month price target for gold to $1,860 an ounce. In early trading Tuesday, spot gold hit a record $1,778 an ounce, before pulling back.
Goldman based its new target on Read more…
What happens if the U.S. defaults?

How a default would unfold immediately appears relatively straightforward. It’s the reaction that no one can predict, because it’s never happened before.
The first move will be made by the U.S. Federal Reserve. The Fed is the Treasury Department’s bank, handling government cheques and lending to banks which borrow using U.S. Treasury debt as collateral.
One day — the U.S. government has estimated it will be Aug. 2 — the Fed will serve notice on the government that its account at the Fed will be in overdraft by the end of the day, in violation of the Federal Reserve Act.
On Aug. 3, some Read more…
ALEX JONES SHOW 22 JUNE 2011 LINDSEY WILLIAMS BOMBSHELL
Is our debt to China a national security risk?

China is the largest foreign holder of U.S. debt (with estimated holdings of $1.16 trillion) — and, according to a newly proposed U.S. military spending bill, this constitutes a national security concern for America.
The 2012 Defense Authorization Bill proposed Monday by Rep. Howard McKeon, the California Republican who chairs the House Armed Services Committee, includes a section on China. Why would China feature in a 2012 military budget? The answer is leverage. As the AFP noted, the question the bill poses is whether “Beijing could draw a military advantage from its status as a major U.S. creditor.”
There is some precedent for this concern. In early 2010, as Reuters reported, senior Chinese military officials urged that China sell some U.S. government bonds as a punishment of sorts for Washington having sold arms to Taiwan (although the threat was not Read more…
Even Donald Trump Is Warning That An Economic Collapse Is Coming
In a shocking new interview, Donald Trump has gone farther than he ever has before in discussing a potential economic collapse in America. Using phrases such as “you’re going to pay $25 for a loaf of bread pretty soon” and “we could end up being another Egypt”, Trump explained to Newsmax that he is incredibly concerned about the direction our economy is headed. Whatever you may think of Donald Trump on a personal level, it is undeniable that he has been extremely successful in business. As one of the most prominent businessmen in America, he is absolutely horrified about what is happening to this nation. In fact, he is so disturbed about the direction that this country is heading that he is seriously considering running for president in 2012. But whether he decides to run in 2012 or not, what Trump is now saying about the U.S. economy should be a huge wake up call for all of us.
Trump says that the U.S. government is broke, that all of our jobs are being shipped overseas, that other nations are heavily taking advantage of us and that the value of the U.S. dollar is being destroyed. The following interview with Trump was originally posted on Newsmax and it is really worth watching….
Now, you may or may not think much of Donald Trump as a politician, but when a businessman of his caliber starts using apocalyptic language to describe where the U.S. economy is headed perhaps we should all pay attention.
The following are 12 key quotes that were pulled out of Trump’s new interview along with some facts and statistics that show that what Trump is saying is really happening. Read more…
National Debt $200 Trillion Dollars
Dr. Laurence Kotlikoff economics professor at Boston University, discusses the national debt and unfunded liabilities – Aug. 11, 2010
Using CBO data, Kotlikoff says the real national debt is $202 trillion.
Compare the official deficit numbers for July – $165 billion – with the numbers for all of 2002 – where $165 billion covered the deficit for the entire fiscal year.
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Excerpt:
The Congressional Budget Office whose Long-Term Budget Outlook, released in June, shows an even larger problem.
‘Unofficial’ Liabilities
Based on the CBO’s data, I calculate a fiscal gap of $202 trillion, which is more than 15 times the official debt. This gargantuan discrepancy between our “official” debt and our actual net indebtedness isn’t surprising. It reflects what economists call the labeling problem. Congress has been very careful over the years to label most of its liabilities “unofficial” to keep them off the books and far in the future.