Chart usGOLD   Chart usSILVER  
 
Food for thought
The 9 scariest words of the english language : “I’m from the Government and I’m Here to Help.”
Ronald Reagan  
Search for :
LATEST NEWS  :
MINING STOCKS  :
Subscribe
Write Us
Add to Google
Search on Ebay :
PRECIOUS METALS (US $)
Gold 1268.593.55
Silver 19.230.05
Platinum 1408.003.25
Palladium 883.504.50
WORLD MARKETS
DOWJONES 17068-30
NASDAQ 459818
NIKKEI 1572860
ASX 5655-2
CAC 40 4378-1
DAX 950728
HUI 237-9
XAU 99-4
CURRENCIES (€)
AUS $ 1.4113
CAN $ 1.4338
US $ 1.3133
GBP (£) 0.7969
Sw Fr 1.2072
YEN 137.8240
CURRENCIES ($)
AUS $ 1.0747
CAN $ 1.0916
Euro 0.7615
GBP (£) 0.6069
Sw Fr 0.9192
YEN 104.9490
RATIOS & INDEXES
Gold / Silver65.97
Gold / Oil13.60
Dowjones / Gold13.45
COMMODITIES
Copper 3.140.05
WTI Oil 93.250.37
Nat. Gas 3.910.02
Market Indices
Metal Prices
RSS
Precious Metals
Graph Generator
Statistics by Country
Statistics by Metals
Advertise on 24hGold
Projects on Google Earth
In the same category
Why We Are Un-Governable
Published : January 26th, 2013
431 words - Reading time : 1 - 1 minutes
( 4 votes, 5/5 ) Print article
 
    Comments    
Tweet

Once a country's total debt exceeds a certain level, the required interest payments become a headwind, making economic growth virtually impossible. Since economic growth is a foundation to political stability, excessive debt pushes a free society towards the limits of governability. This is now the case in most of the developed world. As a consequence we are quickly losing our ability to democratically govern ourselves.

We are irresponsibly and expediently creating infinite amounts of the world's reserve currency out of thin air in desperate hope of creating short term artificial economic growth. Unfortunately, this simply amounts to running up the balances on an unlimited credit card, instead of controlling ourselves like adults. When we do this we stop prioritizing our needs versus our wants. Like a spoiled child, the public quickly becomes conditioned to getting what it wants and expects, versus caring about the costs and consequences.

Politicians are then left the intractable problem of disciplining an unruly household wanting more, when there is less and less available within the sovereign household purse to give. Unfortunately, our pandering political parents have been no better and have been using the debt build up to:

  • Build a global military empire that costs about a trillion dollars a year,

  • Create cradle to grave welfare state that costs a trillion dollars a year,

  • Develop an aristocracy of bankers and politicians who, because they get first crack at those newly-created dollars, have become all-powerful. In today's America, Goldman Sachs, the Treasury Department, and the Fed are just divisions in the same profit-maximizing organization.

Our politicians are no longer leading. Out of campaign finance necessity, they have become obedient followers of party doctrine, political polls, and powerful media masters.

Additionally, excessive debt produces political polarization and gridlock, which makes fiscal policy impotent. This leaves monetary policy as the only remaining tool. A tool the political process does not control, but unelected central bankers do.

We will likely continue to be delusional and hide our problems from ourselves, but we can no longer hide the effects. As a consequence the public has lost confidence in the system and we now have an insidious Crisis of Trust. A Crisis of Trust in our leadership and the system.

As a consequence, every major country will now have no choice but to monetize its debt going forward.

Expect the results to be:

  1. Currency Wars
  2. Rising Political Instability
  3. Rising Inflation (currency depreciation)
  4. A Bond Market Debacle
  5. A Crack-up boom followed by devastating collapse of the U.S., Europe, Japan


25 Minutes, 31 Slides

Data and Statistics for these countries : Japan | All
Gold and Silver Prices for these countries : Japan | All
Tweet
Rate :Average note :5 (4 votes)View Top rated
Previous article by
Gordon Long
All articles by
Gordon Long
Next article by
Gordon Long
Receive by mail the latest articles by this author  
Latest comment posted for this article
Be the first to comment
Add your comment
TOP ARTICLES
Editor's picks
RSS feed24hGold Mobile
Gold Data CenterGold & Silver Converter
Gold coins on eBaySilver coins on eBay
Technical AnalysisFundamental Analysis

Gordon Long

Mr. Long is a former senior group executive with IBM & Motorola, a principle in a high tech public start-up and founder of a private venture capital fund. He is presently involved in private equity placements internationally along with proprietary trading involving the development & application of Chaos Theory and Mandelbrot Generator algorithms.
Gordon Long ArchiveWebsite
Most recent articles by Gordon Long
8/22/2014
8/11/2014
8/10/2014
7/17/2014
7/9/2014
All Articles
Comment this article
You must be logged in to comment an article8000 characters max.
 
Sign in
User : Password : Login
Sign In Forgot password?
 
Receive 24hGold's Daily Market Briefing in your inbox. Go here to subscribe or unsubscribe.
Disclaimer